Oman Insurers Post 5% H1 Profit Growth Despite Claims Pressure

JEDDAH: Net profits of Muscat-listed insurance and takaful companies rose 5 percent to 20.9 million Omani rials ($54.3 million) in the first half, from 19.9 million rials, despite pressure on earnings from rising claims. 

Financial results showed improved performance by most listed companies, while three recorded declines in net profit, according to the Oman News Agency. 

Oman’s insurance sector has been expanding as insurers increase their investments and diversify their portfolios, strengthening their role as institutional investors in the economy. Total investments by insurance companies operating in the Sultanate reached 876.3 million Omani rials in the first quarter of 2026, up 10.3 percent from a year earlier, with the Financial Services Authority saying the increase reflected the sector’s growing contribution to economic activity and growth. 

Domestic insurers accounted for 588.8 million rials of those investments, while foreign insurers held 287.5 million rials, highlighting the sector’s growing role as an institutional investor in Oman’s economy. 

H1 performance 

“Liva Group topped the sector with net profit of 4.4 million rials, although this was down from more than 8.8 million rials in the first half of last year,” ONA reported. 

It added that Dhofar Insurance Co. posted a roughly 55 percent increase in net profit, rising from 2.6 million rials to 4.038 million rials. Oman Reinsurance’s net profit grew 49.5 percent, from 2.2 million rials to 3.3 million rials, while Oman United Insurance Co. recorded a notable increase from 991,000 rials to 3.2 million rials. 

Net profit at Oman Qatar Insurance rose from 1.8 million rials to 2.7 million rials, while Al Madina Takaful’s net profit increased from 813,000 rials to 1.629 million rials. 

The sector’s earnings were weighed down by a decline in net profit at Arabia Falcon Insurance, which fell from 1.053 million rials to 491,000 rials. Takaful Oman Insurance’s net profit plunged from 1.17 million rials to 669,000 rials, the lowest level among insurance companies listed on the MSX. 

Claims pressure 

In reports submitted to shareholders, listed insurance and takaful companies said the sector’s performance had improved and was expected to continue growing in the second half of the year. 

However, they highlighted several challenges, including higher claims, particularly in property and motor insurance, which put pressure on earnings during the first half. 

They said they were addressing these challenges by improving claims management and underwriting practices, expanding their businesses and investment returns, strengthening their insurance portfolios, and diversifying their business lines to remain competitive amid climate change and geopolitical pressures. 

Stocks gain 

The sector’s improved performance was accompanied by an increase in the market capitalization of insurance and takaful companies listed on the MSX, which rose to 334.9 million rials at the end of June from 306.4 million rials in December, an increase of 28.5 million rials.  

Liva Insurance had the largest market capitalization at 143.4 million rials, followed by Dhofar Insurance at 39.5 million rials and Oman United Insurance at 36.1 million rials. Oman Qatar Insurance ranked fourth at 29.6 million rials, followed by Oman Reinsurance at 28.1 million rials.  

Shares of Dhofar Insurance recorded the strongest gain, rising 103 baisas from 237 baisas at the end of December to 340 baisas at the end of June. Liva Group gained 30 baisas to 360 baisas, while Al Madina Takaful advanced from 96 baisas to 121 baisas. 

Oman United Insurance edged up from 339 baisas to 344 baisas, while Arabia Falcon Insurance rose from 135 baisas to 140 baisas. Takaful Oman Insurance increased from 60 baisas to 64 baisas, while Oman Reinsurance was unchanged at 85 baisas. 

On the downside, Oman Qatar Insurance fell from 192 baisas to 184 baisas, while Muscat Insurance recorded the steepest decline, dropping from 790 baisas to 580 baisas.