As the largest insurance company in Oman, Dhofar Insurance Company has been recording success and profits ever since its initiation in 1989. OER profiles the company
The largest insurance company in Oman, Dhofar Insurance Company (S.A.O.G) was established with a paid up capital of RO3, 000,000. It was registered as an Omani Public Joint Stock Company on September 5, 1989. Ever since its incorporation Dhofar Insurance has had a successful growth over the years. The premium income of the company touched RO35, 000,000 in 2004 since its inception in 1989, and the company anticipates an increase of 20 per cent this year.
One of the corporates in the Sultanate that has registered profits consistently, Dhofar Insurance's premium value and capital figures stand at RO12, 000,000. The company maintains that this consistent increase has been achieved as a result of bonus shares with the company issuing dividends every year since its commencement. The foremost activities of Dhofar Insurance include writing all classes of insurances. These include energy, marine, travel, construction, motor, personal accident and workmen's compensation insurances.
Dhofar Insurance has 28 regional offices and another three branches will be launched shortly. The network extends from Khasab to Haima all the way to Mazyouna, including the borders from Dubai to Yemen. The company's employee count has gone up from seven in 1989 to 229 in September 2004. As for the total assets of Dhofar Insurance, the figure exceeds RO30,000,000.
The first quarter results of the company for the year 2005 are commendable with regard to underwriting and investment aspects. This is despite the fact that there was a drop in premium income. Dhofar Insurance has always declined to accept fronting business as the company considers the returns from such policies as negligible and also for the fact that all arrangements have to be done outside Oman.
The profits for the period from January 1, 2005 to March 31, 2005 amounted to RO2, 535,781 (after tax) compared to RO1, 773,492 for the corresponding period last year, which is an increase of 43 per cent. The total premium recorded for the same period came to a total of RO9, 001,655 compared to R.O14, 290,048 for the corresponding period of the previous year. The total underwriting results for the first quarter period this year amounted to RO2, 128,696 whereas in 2004 it was RO1, 681,734 for the same period, clocking an increase of 27 per cent.
The company has also been in the front line as far as Omanisation is concerned. The Omanisation ratio in Dhofar Insurance at the end of March 2005 reached an impressive 73 per cent. Dhofar Insurance has been constantly recognised for the pioneering steps the company as taken in the area of Omanisation. Apart from receiving the 'Greeen Card' since its launch in 1988, the company also bagged the 'Distinction in Employment of Nationals' by the Gulf Council of Arab Countries in Kuwait last year.
Dhofar Insurance was recently ranked 12 in the OER Top 20 list of Corporates in 2004.
The company has also set up a training centre to train their staff at all levels as well as keep abreast with the technological advancements in the field of insurance.
© Oman Economic Review 2005
