ONIC net profit dips in first half

14/08/2014 01:07 AST

Oman National Investment Corporation (ONIC) Holding group has achieved a consolidated net profit of OMR4.06 million for the first six months ending June, compared to OMR5.37 million during the same period last year.

Lower investment income from subsidiary is on the back of Muscat Securities Market (MSM) underperformance compared to the same period last year. MSM index appreciated by 2 per cent for the first half of 2014 compared to 10 per cent for the same period last year, the company said in its first half result statement.

The profit attributable to the parent company shareholders from the group profit is OMR4.02 million compared to a net profit of OMR 5.31 in the six month period ending June, 2013.

Total shareholder's funds attributable to the shareholders of the parent company stood at OMR62.28 million at June 30 2014 and OMR61.14 at December 2013.

The parent company made a net profit of OMR1.79 million for the period compared to a net profit of OMR1.09 million during the corresponding previous period.

Performance of associates

The associate companies continue to deliver a strong performance as evident in the amount of dividends received of OMR1.69 million and the share of profits which stood at OMR2.692 million.

Standard & Poor's Rating Services has reaffirmed International General Insurance's (ONIC's associate) financial strength rating at BBB+ and revised outlook to positive from stable. The revision of the rating is an affirmation of IGI's disciplined underwriting strategy, firm financial standing and successful operating performance in 2013.

National Life and General Insurance Company continues its sterling performance. The gross premiums grew by 30 per cent to OMR38.50 from OMR29.65 million achieved in the first half of the last year.

Insurance sector

The net underwriting results grew by 15 per cent from OMR3.44 million to OMR3.95 million.

ONIC's efforts to expand regionally particularly in the insurance sector is materialising through National Life. Gross written premium in Dubai operations increased by 61 per cent from OMR9.90 to OMR15.95 million over the same period.

The company is replicating the success achieved in Oman and capitalising on the know-how built internally to expand regionally.

The company also received a similar licence to operate in Abu Dhabi, which is another major milestone achieved to enhance the growth profile of the company and enhance shareholder's equity value.

Times of Oman