Oman Reinsurance Company SAOG (ORIC) Earnings Call Transcript & Summary

Good morning, everyone. We're pleased to present the financial results for the first 6 months of 2026. So these are the key highlights for the performance of the company under IFRS 17. So firstly, we have reinsurance revenue. So this is OMR 27.5 million for the 6 months, which is 4% higher than the same period last year. Combined ratio is 89.2%. So this is an improvement compared to the 95.4% in 2025, so a reduction of 6.2%. We'll look at this reduction in more detail in a later slide. Profit after tax is OMR 3.3 million, so that's a 49% increase compared to last year. And finally, the return on equity is 15%. So that's an improvement of 2.7%. On the left, we've got reinsurance revenue, which has shown growth compared to the last year. So that's increasing by 4%. Expenses have increased by around OMR 400,000 for the year, predominantly driven by increased headcount, which has grown by about 12% since June in 2025. Now, expenses as a proportion of the gross written premium, that's now reduced from approximately 5% to 4.3% in 2026. The combined ratio is shown at the top of each of these columns, and it's broken down into the loss ratio, the discount ratio and the cost ratio. So there has been a steady improvement in the combined ratio. So from 98.2% in 2024 -- June 2024 to 89.2% in June 2026. So the loss ratio has improved to 57.1%. Now this is due to lower-than-expected larger natural catastrophe losses that occurred in the first 6 months. The discount ratio has reduced significantly compared to last year, and this is due to increased U.S. Treasury yields in the first 6 months of 2026. So this reduces the net financial expenses. And then on the cost ratio, it has been fairly stable at around about -- reducing from 32% to 29%, and then it's up to about 30%, but this is based on the costs I showed on the last slide. We've seen continued strong investment returns. This is based on our prudent investment strategy driven by our risk profile, and it consists mainly of fixed-income bonds and term deposits. The invested assets have increased by 16% with the same increase seen on the investment income with stable investment returns of around 4.9%. This is annualized. So overall, profitability for the company has been increasing consistently. So it was OMR 1.1 million in 2024, OMR 2.2 million in 2025 and it's OMR 3.3 million in June 2026. So this is a 49% growth. Correspondingly, the return on equity has also consistently risen from 6.5% in 2024, 12.3% in 2025 and 15% in 2026. This is return on annual -- this is an annualized number, and it's average equity, so the average of the opening and the closing positions of the equity. So the shareholders' equity, as you can see here on the left-hand side, has increased from OMR 39 million in 2025, up to close to OMR 46 million, so an 18% increase in 2026. And so the book value per share has increased. So we're now at 139 basis per share. So that is a significant increase compared to 64% higher than the IPO, which was at 85 basis per share. So that's the snapshot of the company's results for June 2026. It's a good set of results. If you have any questions, then be happy to take them. Okay. So if there are no questions, then we'll be concluding this meeting. Subsequently, if there are any questions, then please just write to the Investor Relations address, e-mail address that's on our website. Otherwise, thank you very much for your time this morning, and goodbye.