Insurance Premiums Increased by 3% to RO 480 Million
Assets of Insurance Companies Increased by 7.5% to RO 1.2 Billion
- Issued Policies Increased by 1.6% in the past five years
- Takaful Policies Increased by 25% to 219 million policies
- RO 290 million paid as compensation by insurance companies
The audited financial statements of the insurance sector for the year 2021 show that the capital of insurance companies was RO 274.66 million in 2021 compared to RO 274.73 million in 2020, a decrease of 0.03%, as the capital of national companies was RO 125.36 million in 2021 compared to RO 125.36 million in 2020, unchanged. The capital of foreign insurance companies was RO 149.31 million in 2021 compared RO to 149.38 million in 2020 a decrease of 0.05%.
Total assets
The audited financial statements of insurance companies indicate an increase in the total assets of insurance companies in 2021 by 7.5% to RO 1,197.55 million of which RO 767.64 million were related to general insurance, RO 219.97 million related to life insurance, RO 209.95 million related to health insurance. Total assets in the year 2020 were RO1, 113.87 million, of which RO 787.54 million related to general insurance, RO 326.33 million related to life insurance / family Takaful. The assets of national insurance companies accounted for 72.8% at RO 872.48 million , while foreign insurance companies accounted for 27.2% of the total assets, with an estimated value of about RO 325.07 million.
Total net profits
The total net profits of insurance companies were RO 25.760 million in 2021 compared to RO 48.539 million in 2020, a decrease of 47%. The profits of foreign insurance companies were about RO 8.073 million in 2021 compared to RO 14.938 million in 2020, a decrease of 46%.
Gross direct written premiums
Gross direct premiums of insurance companies operating in the Sultanate increased by 3% in 2021 to reach RO 479.857 million compared to about RO 465.895 million in 2020, whereas gross direct premiums of general insurance increased by 0.7% to RO 258.670 million in the year 2021 compared to RO 256.951 million in 2020. This was also accompanied by an increase in the gross direct premiums of life insurance / family Takaful by 6.6% to RO 57.321 million in the year 2021 compared to RO 53.752 million 2020. Gross direct premiums for health insurance increased by 5.6% to RO 163.866 million in the year 2021 compared to RO 155.193 million in 2020.
Total Paid Indemnities
Compensation paid by insurance companies in the year 2021 increased by 0.1% compared to the year 2020. Total compensations paid by insurance companies were RO 289.834 million in the year 2021 compared to RO 289.601 million in 2020.
The audited financial statements indicate a decrease in the total compensations paid for general insurance by 8.4% to RO 125.522 million in 2021 compared to 136.975 million in 2020. Compensations paid to life insurance / family Takaful recorded an increase at 38.6% in the year 2021 compared to the previous year. As for the compensations paid for health insurance, they recorded a decrease of 0.5% compared to the year 2020, to RO 120.123 million.
Issued Policies
The number of policies issued by insurance companies for general, life insurance / family Takaful and health Insurance in the financial year 2021 increased by 8.6% to RO 1.782 million policies, including 1.569 million policies for general insurance, 189,636 policies for life insurance/ family Takaful and 22,939 policies for health insurance compared to the total number of policies issued in the year 2020, which were 1.640 million policies, including 1.496 million policies for general insurance, 131,676 policies for life insurance / family Takaful and 12,234 policies for health insurance.
Retention ratio
Retention ratio of insurance companies in the year 2021 was about 55.5% a decrease from 56.5% compared to 2020. The audited financial statements for the year 2021 indicate that the retention ratio of national insurance companies was 55.4% in the year 2021 compared to 55.2% in 2020, and the retention ratio of foreign companies decreased from 62.8% in the year 2020 to 55.9% in 2021. Motor insurance (comprehensive and third party) constituted the highest ratio compared to other insurances for national companies at 89.6% and 91.5%, respectively, the same was for foreign companies, where motor insurance (comprehensive and third party) constituted the highest ratio at 95.7% and 95.1% respectively.
Takaful activity
Gross direct premiums for Takaful companies operating in the Sultanate increased by 9.1% to RO 70.779 million in the year 2021 compared to RO 64.848 million in 2020, which represents approximately 15% of the gross direct premiums of insurance companies, whereas it is noted that the gross direct premiums of Takaful companies for general insurance have increased to RO 44.160 million in 2021 compared to RO 41.419 million in 2020. Takaful represented 17% of the total general insurance of all the sectors’ companies. Gross direct premiums of family Takaful increased by 10.8% to RO 13.471 million in the year 2021 compared to RO 12.158 million in 2020. Family Takaful constituted 24% of the total life/ family insurance of all the companies in the sector. Gross direct premiums of Takaful companies for health activity increased by 16.7% to RO 13.148 million in 2021 compared to RO 11.271 million in 2020. Health Takaful represented 8% of the total health insurance of all the companies in the sector.
The audited financial statements for the year 2021 indicate that the total compensations paid for Takaful activity increased by 13.7% to RO 38.392 million in the year compared to RO 33.777 million in 2020, which constitutes 13% of the total compensations paid by insurance companies. Total compensations paid to the Takaful activities for general insurance increased by 1.4% to RO 19.886 million in 2021 compared to RO19.609 million in 2020.
Total compensations paid to family Takaful activity increased by 77.7% to RO 9.900 million in 2021 compared to RO 5.572 million in 2020. A very slight increase in the total compensations paid to health Takaful activity was recorded at 0.1% to RO 8.606 million in 2021 compared to RO 8.595 million in 2020.
Takaful policies in 2021 were 218,611 policies, including 195,361 policies for the general Takaful, 21,916 policies for the family Takaful activity and 1,334 policies for the health Takaful activity.