Oman United Insurance Company SAOG ($OUIC)

Good afternoon, everyone. Welcome to the Oman United's investor presentation for the financial year ended 31st December '25. We have Mr. Moosa, our Company Secretary. He's online. Madam Latha, she is the DGM, Finance and Accounts; myself, Siva Kumar, I head the operations; and Mr. Muthu Kumar, who is our CEO. So thank you, and welcome, everyone. So, as always, we at Oman United have been very careful as far as the market developments are concerned. And generally for the benefit of the shareholders, we circulate this particular piece of information and share information on what happened and what are the opportunities in the year ahead. So our mission and vision is to have stable, sustainable and uninterrupted cash dividends to the shareholders. And we have been careful and trying to underwrite quality business, ultimately leading to customers -- pleasant customer experience. As far as awards and recognition go, we have been consistent in the awards in -- there is one award which we got in '25 and then one more which is due tomorrow, which is for the branding as far as Oman United is concerned. From a background of the company, we're established in '85, 1985 with an initial OMR 2 million capital. Our capital currently is at OMR 10 million. And we also have an additional contingency reserve of OMR 10 million, which we completed as per regulations. And we also have a legal reserve of 1/3 of the paid-up capital. So from an operational standpoint, we do not foresee any appropriations from reserves from the net profit. Our directors are very experienced, have been there. You would observe that our Chairman, Mr. Saud Bin Ahmad Al Nahari has been there in the Board since 1988. He's been the Chairman since last year. We have one addition of directors, Mr. P.R. Ramakrishnan, he is the Director. He joined us in 2025. All other directors have been there with Oman United for long. The executive management, senior management team, again here, you will see we have Sayyid Nassir, who is our Chief Management Executive, Mr. Muthu Kumar as the Chief Executive Officer. And most of the team members, DGM, GMs, et cetera, have been there handling these functions for fairly long with the company. And they have been mostly with Oman United for greater than 10 years. As far as our dividend history is concerned, we have -- since beginning of the company, we have paid out OMR 52 million, however, as cash dividends. And over the last 17 years, we have given OMR 43.1 million as cash dividends. You will see a consistent history of dividends. And yesterday, in the AGM, the shareholders had approved the dividend of 20% and a 5% bonus. So this is an additional information. From a distribution channels, in the company, we have 11 branches. We are present with 35 tied agents. There are marketing agents 25 that's spread across the country. And we deal with about 20 brokers. And mostly our relationships have been long term and were consistent. There are agents who have been here for even more than 25 years. As far as reinsurance partners go, we have strong reinsurance partners to support our business. We have SCOR on the general insurance treaties as the leaders, we have Munich Re on the medical, we have Hannover on the life. So more or less, all the major reinsurers are there supporting and they have been there with us for a fairly long time, in excess of 15 years. Now coming to the comprehensive income for the year '25 versus '24. Just to -- these are IFRS 17 numbers. So insurance revenue is showing OMR 33.5 million against OMR 34.9 million. But actually, when you look at the actual gross premium written, we increased our gross premium to about OMR 35.7 million. So the insurance revenue is adjusted for the cash flows as per IFRS 17. Therefore, it shows a slightly lower number. But overall, the GPW was higher. So as the maturing of the premium happens, we will have a better revenue recognition coming in. Insurance service result, it improved compared to last year in specific lines of business, but motor was having a stressed last to last year. We took some measures and that improved last year, and it is going on the right direction. But overall, if you see our net profit for the year against OMR 1.5 million last year, we ended 31st December '25 with OMR 5.1 million as net profit after tax. Total comprehensive income for the year against OMR 2.3 million, OMR 5 million. As a summary of financials, our balance sheet size, asset size is OMR 91 million, paid up capital is OMR 10 million and shareholders equity, including paid up capital, is OMR 10 million -- OMR 30 million. So overall, as a summary, we have an investment book of about OMR 64 million, out of which 65% is in deposits. Net profit, as we explained last slide, OMR 5.1 million. I think solvency surplus, which is an important indicator of the financial strength of the insurance company, we have ended the year with an OMR 18.4 million solvency surplus against last year's OMR 14.4 million. However, the minimum requirement, statutory requirements of investing is OMR 9.52 million. So we have solvency surplus of OMR 18.47 million against OMR 9.52 million which is required. Contingency reserve of also OMR 10 million has also been complied with. This is a summary of -- a little bit of more detail of the comprehensive income. So overall, if you see our comprehensive income for the year is OMR 5 million against OMR 2.3 million. All other heads of income we have explained. From a balance sheet perspective, against OMR 94.7 million last year balance sheet asset size, this year, we have ended with OMR 91 million. I think more or less, it's a consistent trend as far as major asset classes are concerned, whether it is our building, whether it is our deposits, et cetera, more or less it's in the same range as last year. I think there are some changes to the insurance contract assets and insurance contract liabilities, both because certain claims, the liabilities came down. So it has an offsetting effect on both sides of the balance sheet. Overall, OMR 91 million on the equity side, and out of which our shareholders' equity is about OMR 30 million. This is the summary. From the shareholders' equity perspective, we have OMR 6.9 million on the retained earnings against OMR 4.2 million last year. All other major hedges, there has been no change. More or less consistent. From a strategy of investments, as we had demonstrated last -- previous presentation which we have done, our fixed income investments have moved from OMR 41 million to OMR 45 million, and equity and other investments from OMR 16 million, it has been about OMR 16.9 million. Immovable assets is more or less steady at about 2 locations which we have, which is our office building in Al Khuwair in Muscat. And also we have a Ghala automobile garage, which has been rented up. So both of them are valued at cost minus depreciation. So this gives you an idea of where these 2 immovable properties are. We have OMR 4.35 million for the head office property. So we have unrecognized appreciation of OMR 2 million -- OMR 2.2 million on the head office property. The garage property fetches a rental income of about OMR 180,000 for the year. However, market value of the property is OMR 2 million, and we have an unrecognized appreciation of about OMR 1.7 million for the garage property, which is in Ghala in Muscat. So overall, together, both of them we have unrecognized appreciation for both the property at about OMR 3.9 million. We have been focused on trainings right from the top to the bottom most of the teams. We have an 88% Omanization. There has been a lot of focus which has been given on the trainings and workshops in the last year. And we had 4 of our team members who qualified various levels of the insurance examinations. And I think even in the IT, we have some people who have qualified and done some courses. So overall, we are focused on the technical trainings of the people, and we have seen decent success there. We have a strong balance sheet. Retained earnings of OMR 6.9 million. Our actuarial teams who have been doing the actuarial work for us, we have 2 different actuaries. On the life side, life and medical is done by one actuary and the general side of business is overseen by another actuary. This has all been consistent. Our provisioning have been observed to be consistent and our reports have been clean. So I think looking at 2025 and the year ahead, there are some challenges as far as the market is concerned. We observe intense competition across lines of business. We are foreseeing some new projects, which will add as a fillip for the current year in '26. We have seen some success, but more -- we would probably like to see more kind of projects coming in. The underwriting profit margin was under stress due to [indiscernible] in motor and medical business. Some steps were taken in '24 and '25, which is showing improvements. Our loss ratio on the motor and medical businesses came down. It has to still go further down, for which work is underway. Catastrophic events like Al Wadi, having stated in the previous presentation, did impact the reinsurance costs. For us, fortunately, because it was not negative, so last year, we had some reductions. So pressure from the reinsurance on the pricing will repeat. I think that will continue in the current year as we foresee. However, we are probably one of the very few companies where the reinsurance have supported us in the last year in spite of whatever was happening in the market, they supported us with continuing the kind of retention capacities increase. Kind of commissions income also saw some increases, which was good because that's the way the reinsurers see our book of business. The medical business is -- licensing work is underway. We have responded to FSA, and they have come back with certain additional queries for which we are working for submitting our responses. But yes, this is a very -- medical business is a fairly challenging business from a pricing perspective. And hopefully, some changes are underway, and we are hoping that, yes, this will show some kind of improved pricing levels. From a business growth perspective, I think we see -- we are focusing on increasing digital marketing presence. We have received the approval of the regulator, and we are underway as far as the deployment is concerned. Focus is on non-motor business growth, and we will continue our rationalized approach as far as the motor business growth is concerned. And thirdly, licensing of health insurance, as I've appraised, we have already undertaken this. Our life business with Hannover as our reinsurance partner, we changed our pricing strategy in the last year, and it was reviewed and redone. So I think we are seeing a fair amount of growth in this side of the business also. So from a business growth perspective, we feel that there is scope to improve our growth prospective here. Thank you. The floor is open for questions, please. Are you able to hear us? Any questions, please?

Moosa, you are able to hear?

Yes, I'm able to hear you.

Okay.

There is no other questions in this session.

Can we wind up the session?

Good afternoon, everyone. If there are no any questions, let us close the session.

Thank you.

Thank you so much to all of you for attending this session. And since there are no more questions, then we will try to wind up the session. Thank you so much.

Thank you very much.

Thank you.

Thank you, Moosa.

Thank you.