Omani Insurers Post Over OMR20 Million in Net Profits, Eyeing Continued Growth Amid Challenges

Insurance and takaful firms listed on the Muscat Stock Exchange (MSX) demonstrated robust financial performance in the first half of this year, collectively achieving net profits of OMR20.9 million. This figure represents a 5% increase compared to the OMR19.9 million earned during the same period last year, indicating a positive trend for the sector.

The financial results revealed a mixed performance among individual companies. Liva Group, despite leading in net profits with OMR4.4 million, experienced a notable decline from its first-half earnings of over OMR8.8 million in the prior year. Conversely, Dhofar Insurance Company saw a significant 55% jump in net profits, rising from OMR2.6 million to OMR4 million. Oman Reinsurance Company also reported strong growth, with its net profit increasing by 49.5% from OMR2.2 million to OMR3.3 million. Oman United Insurance Company also posted remarkable growth, more than tripling its net profit from OMR991,000 to OMR3.2 million.

Despite the overall positive trend, some companies faced profit declines. Arab Falcon Insurance Company's net profits fell from OMR1.53 million to OMR491,000, and Takaful Oman Insurance recorded the lowest net profits among listed companies, decreasing from OMR1.17 million to OMR1.669 million.

Looking ahead, companies expressed optimism for continued growth in the second half of the year. However, they acknowledged challenges, particularly the rise in claims, especially in property and vehicle insurance, which put pressure on profits. To counter these pressures, firms are focusing on improving overall performance, developing business strategies, increasing investment returns, enhancing claims management, and strengthening underwriting discipline. Diversifying business areas is also a key strategy to maintain competitiveness amidst global challenges like climate change and geopolitical instability.

The sector's improved performance was reflected in its market value, which rose to OMR334.9 million by the end of June, up from OMR306.4 million in December 2025, marking market gains of OMR28.5 million. Liva Group again led in market value with OMR143.4 million, followed by Dhofar Insurance.