MSX30 Index ended the week lower by 1.10 per cent. All sub-indices ended in red. Financial sector fell by 1.00 per cent while Services went down by 1.71 per cent. Industrial sector closed down by 0.54 per cent. MSX Shariah Index closed down by 0.86 per cent.
National Life and General Insurance has tied up with Omantel to provide motor insurance through Omantel self-service machines at various locations across Oman. Omantel is the topmost telecom company and NLG, the market leader and largest insurance company in Oman is also the number 1 in motor insurance based on total premium in 2020.
Ahlibank has announced the signing of an agreement with Dhofar Insurance Company. Under the agreement, ahlibank will strengthen its portfolio of insurance solutions offering its customers comprehensive home and family insurance protections with long term plans, to address their evolved and aware choices.
The total investments of Oman insurance companies at the end of 2020 were RO 669m including RO 414.4m investments of national insurance companies and RO 254.6m investments of the foreign insurance companies compared to RO 634.8m at the end of 2019 which were RO 399.2m for the national insurance companies and RO 235.6m for the foreign insurance companies.
The investments of national insurance companies were concentrated in 2019 and 2020 in banking deposits (General and Life) which represents 63 per cent in 2020 and 66 per cent in 2019.
On the other hand, the investment of national insurance companies in other investment instruments collectivity were not more than 37 per cent in 2020 and 34 per cent in 2019.
National insurance companies investment composition has changed over the last four years towards less risky form of investments.
Investment in companies (listed/unlisted) has reduced to 9 per cent of the total in 2020 from 15 per cent in 2017 while investment in fixed income (government & corporate bonds) has increased to 20 per cent compared to 9 per cent earlier.
Conventional credit growth dropped to +0.4 per cent YoY from +2.2 per cent YoY in Dec 2020. Total conventional credit reached RO 22.55bn (-RO 104.2m on MoM basis or -0.5 per cent MoM).
Conventional credit contracted on MoM basis largely on account of -0.9 per cent MoM, or RO 177.8m worth of decline in Private Sector credit.
Government and Public Enterprises credit registered growth of +9.4 per cent MoM and +0.5 per cent MoM. Credit to non-residents also increased by 4.0 per cent MoM.
Conventional deposits grew by +2.3 per cent YoY as compared to almost similar rate YoY in Apr 2021. Total conventional deposits stood at RO 20.98bn (+RO 97.4m on MoM basis or +0.5 per cent MoM).
Conventional deposits increased on MoM basis on account of Public Enterprises and Non-Resident deposits while government deposits dropped marginally on MoM basis.
The share of Government & Public Enterprises deposits, which had dropped to the lowest value in our records at 26.6 per cent in Dec 2020, now stand at 27.2 per cent in May 2021 but below 27.8 per cent recorded in February 2021.
Loan-to-deposit (LTD) ratio marginally dropped and stood at 107.5 per cent.
The inflation rate in the Sultanate increased in June by 1.25 per cent compared to the same month of 2020, according to the latest data issued by the National Center for Statistics and Information (NCSI).
The rise in the price index in June 2021 is attributed to the increase of prices in main groups such as transportation, various goods and services, furniture, household equipment, clothing, foot wear, education, health, housing, water, electricity, gas and other types of fuel. [Courtesy: U-Capital]
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