MUSCAT -- Oman United Insurance Company (OUIC) is all set to launch initial public offering (IPO) for its new takaful company in the beginning of next year. According to Sayyid bin Salim al Busaidi, Managing Director of Oman United, the company has already received approval in principle in this regard from the Capital Market Authority. The preliminary work has been completed following a feasibility study conducted by UK-based Sharia compliance and product development specialist IFAAS, Al Busaidi told the Observer. "The company has a bright future and will be of great value proposition for the investors in the market", he said. With the expertise of an experienced team, which has ample knowledge in Shria compliant products, the new takaful company will be transparent enough to deliver products according to the needs of the clients, Busaidi said.
"Since we are an existing firm, we expect to be profitable for all our stakeholders and enhance the whole business of takaful insurance in terms of products and services to address to the needs of our customers", he added. Ravi Shankar, Chief Executive Officer of Oman United, said that 40 per cent of the shares with a price value at par will be offered to the public. "Other aspects of the IPO, including promoters, issue managers are in the final stage", he said. Oman United Insurance registered 78 per cent growth with a net profit of RO 4 million up to third quarter in the current fiscal. The gross premium income from all operations of Oman United Insurance posted a 12 per cent increase to RO33.8 million against RO 30.2 million in the corresponding period last year. "The new company will be competitive enough not only in takaful space, but will compete well even with the conventional players", Ravi Shankar said.
The takaful sector has all the potential to take 10 to 15 share of the total insurance industry in the coming years, he opined. With insurance in Oman having a low overall penetration rate, and takaful typically taking around 20 to 25 per cent of the market share in other GCC countries, Islamic insurance can dominate the segment, he said. He said that Oman's takaful industry is confident and buoyant with enough opportunities. The new company will have maximum leverage to cash in on the opportunities. "While our vision is to continue providing maximum profitability to our shareholders, our customers can expect good products and services", he said. He said takaful will initially help the company retain its existing customers who want Islamic insurance products and then acquire new customers as well.
"Also takaful structure will have coverage to both non-life and family life, he added. Oman United Insurance is the first Omani company to receive higher rating from the international rating agency Standard and Poor's. The company was also voted the 'Oman Insurer of the year 2013' by MENAIR Insurance Review, London.
© Oman Daily Observer 2013
