Investments abroad decreased by 4.5% and increased by 1% domestically

Unaudited financial data of the insurance sector for the first quarter of 2020 revealed that total investments of insurance companies were about RO 686.5 million increasing by 2.8% compared to the first quarter of the previous year. National insurance companies recorded  RO 529.6 million and foreign insurance companies RO 257.2 million.

The data shows that investments of national insurance companies  were concentrated in the Sultanate at 90% while investments of foreign insurance companies were about 10% and they invested 82% inside the Sultanate in cash instruments, bank deposits , government and corporate bonds.  Investments of foreign insurance companies abroad were 18%.

The data indicates that cash instruments, bank deposits, listed bonds and shares and real estate were the majority of the investments. Cash instruments and bank deposits were RO 278.5 million at 64.8% of the total investments of national insurance companies and RO 162.8 million at 63.3% of the total investments of foreign insurance companies.

The data showed that total investments inside the Sultanate  increased in the first quarter of 2020 by 1% compared to the previous year. Investments in investment funds, government and corporate bonds increased the by 59.4%, 32.2% and 13.8% consecutively compared to the first quarter of 2019. Investments in listed shares and loans guaranteed by life insurance, cash and bank deposits have decreased.

Investments abroad decrease in the first quarter of 2020 compared to the previous year by 4.5%. Investments in cash, bank deposits and life guaranteed loans were the highest investment schemes at 94% and 2.1% consecutively while other investment schemes have decreased by 1.3% and 35.5%.

Dhofar Insurance  has the biggest share in the investments in the first quarter with total investments at RO 74.467 million followed by Axa Insurance with total investments at RO 69.486 million and Oman United Insurance in the third place with total investments RO 63.287 million followed by National Life and General Insurance with total investments RO 56.027 million. It is noteworthy that these four insurers have 38% of the total investments in the sector in the first quarter of 2020.

Investments of national insurance companies were concentrated  in cash and bank deposits. The data shows that  national insurance companies have invested in cash and bank deposits about 64.8% of their total investments inside the Sultanate and abroad.  Al Ahilya Insurance was the biggest investor in cash and bank deposits at 94% of its total investments while National Life and General Insurance has the lowest investments in cash and bank deposits among the national insurance companies at 36% of its total investments. Foreign insurance companies invested 63.3% of their investments inside the Sultanate and abroad in cash and bank deposits schemes. Orient Insurance and Iranian Insurance invested 100% of their investments in these schemes while Life Insurance had the lowest investments in these scheme at 40%.

The number of insurance companies operating in Oman at the end of the first quarter of 2020 was 20 insurance companies comprising 10 national and 10 foreign companies in addition to one reinsurance company i.e. Oman Reinsurance. The number of national and foreign insurance companies licensed to carry out life insurance is 15 companies and 19 companies are carrying out general insurance and 14 companies carrying out life and general insurance.