Oman Insurance Report Q3 2010
Business Monitor International, August 2010, Pages: 65
Business Monitor International's Oman Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Oman's insurance industry.
Oman’s insurance sector is small and rapidly growing in both global and regional terms, with an embryonic life segment. In our last quarterly report, we noted that, in terms of gross written premiums, Dhofar Insurance had by far the largest market share, followed by Oman United Insurance and Al Ahlia Insurance Together these companies accounted for 70-75% of non-life premiums written in calendar 2008. Oman National Life was, and is, significant in the life sector.
Since then, there has been a major change in the competitive landscape as ONIC Holdings has sold its controlling interest in Al Ahlia to RSA Oman – the local subsidiary of the UK-based property/casualty company with global reach. In return, ONIC has received a 20% stake in RSA Oman. This appears to be a good deal for all concerned. ONIC and the minority shareholders in RSA Oman have investments in what is, by net written premiums, now the largest player in the insurance sector, while RSA has dramatically increased its market share. By operating under the aegis of RSA Oman, Al Ahlia now has access to the considerable resources of the global group.
In this report, we also provide a breakdown of the insurance sector by line – from the point of view of the regulator or trade association. In 2008, comprehensive motor insurance (presumably compulsory motor third party liability insurance, CMTPL) was the largest line in Oman – accounting for about half of gross written premiums. Other major lines included property and transport insurance.
At the time of writing, in mid-2010, we have been able to ensure that the report includes actual data for 2008. We have also generally been able to use data that has been published during 2009 to adjust our forecasts for the year as a whole and have extended forecasts to 2014. We expect total premiums in 2009 of OMR211mn. This includes non-life premiums of OMR169mn and life premiums of OMR42mn. In 2014, the corresponding figures should be OMR359mn, OMR312mn and OMR47mn respectively. In terms of the key drivers that underpin our forecasts, we forecast non-life penetration to rise from 0.71% in 2009 to 0.95% in 2014, and for life density to rise from US$38 to US$40 per capita. BMI’s insurance industry Business Environment Rating for Oman is 48.6.
Issues to Watch
Further Corporate Realignment
In the context of the Middle East, ONIC Holdings is unusual for having taken the view that it is better to own 20% of an enlarged RSA Oman than all of Al-Ahleia. Time will tell if other participants in Oman’s insurance sector (and, for that matter, its counterparts elsewhere in the Middle East) take a similar view. Aside from Saudi Arabia’s Tawuniya, there are not really any indigenous insurance companies in the Arab countries of the Middle East that would rate as large organisations elsewhere.
Business Conducted For Expatriates
For a small country that does not clearly aspire to evolve as the financial services centre of the Middle East, Oman’s insurance market is remarkably open to foreign participation. Foreign groups that are active include the local subsidiaries of New India, Life Insurance Company (of India) and Bimeh Iran. We presume that these companies are mainly serving expatriates from Iran and India. Their businesses should, therefore, be leveraged to an overall expansion of Oman’s economy.
Executive Summary
- Table: Overview Of Oman’s Insurance Sector
- Key Insights On Oman’s Insurance Sector
- Issues to Watch
SWOT Analysis
- Oman Insurance Industry SWOT
- Oman Political SWOT
- Oman Economic SWOT
- Oman Business Environment SWOT
MetLife’s Acquisition Of ALICO
- Table: ALICO At A Glance
- Table: ALICO’s Pre-Tax Profits By Segment And Region Contribution, Year To November 30 2009 (%)
- Table: ALICO – A Market Leader In Japan
- Table: MetLife's Acquisition Of ALICO
- Table: MetLife And ALICO Combined
Middle East And North Africa Overview
- Islamic Insurance Overview
- Projections and Forecasts
- Table: Premiums, 2007-2014
- Projections And Drivers Of Growth
- Table: Growth Drivers, 2007-2014
Country Update
- Macroeconomic Outlook
- Table: Oman – Economic Activity, 2007-2014
- Political Outlook
- Insurance Business Environment Rating
- Table: Oman – Insurance Business Environment Indicators
- Table: Middle East And Africa Insurance Business Environment Ratings
- Regional Context
- Table: Non-Life Premiums In A Regional Context, 2008
- Table: Life Premiums In A Regional Context, 2008
- Major Players In Oman’s Insurance Sector
- Table: Gross Premiums Written By Selected Companies, H108 And H109 (OMRmn)
- Table: Gross Written Premiums, 2007 And 2008 (OMRmn)
- Analysis Of Regional Competitive Conditions
- Table: Listed Middle Eastern Insurance Companies. Net Premiums, Net Profit And Long Term Assets, 2003-2008 (US$mn)
Selected Company Profiles
- Local Company Profiles
- Al Ahlia Insurance Company/ RSA Oman
- Dhofar Insurance Company
- National Life & General Insurance Company
- Oman United Company
- Selected Regional Company Profiles
- AIG
- Allianz
- Aviva
- AXA
- Generali
- HSBC Insurance
- MAPFRE
- RSA
- UNIQA
- Zurich Financial Services
Country Snapshot: Oman Demographic Data
- Section 1: Population
- Demographic Indicators, 2005-2030
- Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Education, 2002-2005
- Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Employment Indicators, 1999-2004
- Consumer Expenditure, 2000-2012 (US$)
BMI Methodology
- Insurance Business Environment Ratings
- Table: Insurance Business Environment Indicators And Rationale
- Table: Weighting Of Indicators
- AIG
- Allianz
- Aviva
- AXA
- Generali
- HSBC Insurance
- MAPFRE
- RSA
- UNIQA
- Zurich Financial Services
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