Oman National Investment Corporation (ONIC) Holding reported a 24 per cent decline in net profit for the six-month period ended June 30, 2014, on lower net investment income from its insurance subsidiary.
The group posted a consolidated net profit of RO4.06mn for the first half of this year, compared with RO5.37mn in the corresponding period last year, according to a filing with the Muscat Securities Market (MSM) on Wednesday. Net investment income dropped to RO1.07mn from RO2.39mn.
“Lower investment income from our subsidiary [NLGIC] is on the back of MSM’s underperformance compared to the same period last year. The MSM index appreciated by two per cent for the first half of 2014 compared with ten per cent for the same period last year,” ONIC Holding said in its directors’ report.
However, the parent company's net profit rose to RO1.79mn for the 2014 period from RO1.09mn a year ago. For the six-month period, the parent company received dividends of RO1.69mn from associate companies and RO735,000 from its National Life and General Insurance Co (NLGIC) subsidiary.
ONIC said that efforts to expand regionally, particularly in the insurance sector, is materialising through the performance of its subsidiary. ONIC holds a nearly 98 per cent stake in NLGIC.
NLGIC's gross written premiums grew by 30 per cent to RO38.5mn from RO29.65mn. Net underwriting results grew by 15 per cent from RO3.44mn to RO3.95mn.
ONIC said that NLGIC's gross written premium from its Dubai operations jumped by 61 per cent from RO9.9mn to RO15.95mn. “The company is replicating the success achieved in Oman and capitalising on the know-how built internally to expand regionally.”
ONIC added that NLGIC also received a licence to operate in Abu Dhabi which is another major milestone achieved to enhance the growth profile of the company and enhance shareholder equity.© Copyright - Muscat Daily