Oman Insurance Report Q1 2011
Business Monitor International, February 2011, Pages: 68
The 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 but rapidly growing in global and regional terms with an embryonic life segment. In BMI’s last report it was 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 2008. Oman National Life remains significant in the life sector.
Since then there has been a major change in the competitive landscape as ONIC Holdings sold its controlling interest in al-Ahlia in 2010 to RSA Oman – the local subsidiary of the UK-based property/casualty company with a global reach. In return, ONIC 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, the largest player in the insurance sector, while RSA 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.
This report also provides a breakdown of the insurance sector by line – from the point of view of the regulator or trade association. In 2008, comprehensive motor insurance (predominantly 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, BMI has been able to ensure that the report includes actual data for 2009. On the basis of information released by several of the larger insurance companies during 2010, BMI estimates total premiums for the year as a whole, of OMR180mn. This includes non-life premiums of OMR142mn and life premiums of OMR39mn. In 2015, the corresponding figures are forecast to be OMR2977mn, OMR 254mn and OMR43mn. In terms of the key drivers that underpin the forecasts, non-life penetration is expected to rise from 0.7% in 2010 to 0.98% in 2015, and for life density to rise from US$35 per capita to US$37 over the same period. BMI’s Insurance Business Environment Rating for Oman is 48.7.
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-Ahlia. Time will tell if other participants in Oman’s insurance sector (and its counterparts elsewhere in the Middle East, for that matter) 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 be regarded as large organisations elsewhere.
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 from India and Bimeh Iran. We presume these companies are mainly serving expatriate customers. 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 Africa Overview
Table: Non-Life Segment Premiums, 2009-2010
Table: Life Segment Premiums, 2009-2010
Islamic Insurance Overview
Projections And Forecasts
Table: Insurance Premiums, 2008-2015
Projections And Drivers Of Growth
Table: Growth Drivers, 2008-2015
Country Update
Macroeconomic Outlook
Table: Oman Economic Activity, 2008-2015
Political Outlook
Long-Term Political Outlook
Insurance Business Environment Ratings
Table: Oman’s Insurance Business Environment Rating
Table: Middle East And Africa Insurance Business Environment Ratings
Regional Context
Table: Non-Life Premiums In A Regional Context, 2009
Table: Life Premiums In A Regional Context, 2009
Major Players in Oman’s Insurance Sector
Table: Gross Premiums Written By Selected Companies, H108-H109 (OMRmn)
Table: Gross Written Premiums, 2007-2008 (OMRmn)
Analysis Of Regional Competitive Conditions
Selected Company Profiles
Local Company Profiles
Al-Ahlia Insurance Company/ RSA Oman
Dhofar Insurance Company
National Life & General Insurance Company
Oman United Insurance Company
Regional Company Profiles
Arab Insurance Group BSC (ARIG)
Chartis
Allianz
Aviva
AXA
Generali
HSBC Insurance
MAPFRE
MetLife ALICO
RSA
Zurich Financial Services
Country Snapshot: Oman Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 1999-2004
Table: Consumer Expenditure, 2000-2012 (US$)
BMI Methodology
Insurance Business Environment Ratings
Table: Insurance Business Environment Indicators And Rationale
Table: Weighting Of Indicators
- Al-Ahlia Insurance Company/ RSA Oman
- Dhofar Insurance Company
- National Life & General Insurance Company
- Oman United Insurance Company
- Arab Insurance Group BSC (ARIG)
- Chartis
- Allianz
- Aviva
- AXA
- Generali
- HSBC Insurance
- MAPFRE
- MetLife ALICO
- RSA
- Zurich Financial Services
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