Oman United Insurance Co's (OUIC) net profit for the full-year 2012 jumped 138 per cent to RO2.6mn from RO1.1mn in the previous year.
Despite challenges to its motor-insurance business, the insurer's net profit surged mainly due to income from its investments in real estate and the stock market, and its non-motor insurance business.
In its filing to the Muscat Securities Market (MSM), OUIC said gross written premium rose 20 per cent to RO36.3mn in 2012, while gross underwriting income dropped six per cent to RO3.1mn from RO3.3mn a year ago. Company's total investment income almost tripled to RO3mn in 2012 from RO1mn.
Managing director Nassir bin Salim al Busaidi told Muscat Daily that in spite of the market being tough, the firm profited from investments in sectors like real estate.
He said, "The market was quite tough in 2012. With the number of accidents increasing, it has been very difficult to make profits from motor insurance, and hence the company has seen a decrease in the premium from motor-insurance products. Non-motor insurance products performed better in 2012."
Busaidi added that the company also made a profit from its investments in stocks and bank deposits.
"We learned from our past mistakes, adopted risk-assessment measures and took precautions in adopting strategies to earn profits. Most of the profits that we made came from non-motor insurance products, bank deposits and stocks. We are going to focus on what we have learned and take necessary steps to make 2013 a good year for the company."
© Muscat Daily 2013
