National Life IPO opens on Oct 22

MUSCAT, OCT 15 – The Initial Public offering (IPO) of National Life & General Insurance Company (NLGIC), opens on October 22 and closes on November 20, 2017, providing an opportunity for investors to be a part of the insurer’s “long-term growth story”, a company official said.
NLGIC is offering 66.25 million shares at an offer price of 320 baisas per share. As per the Capital Market Authority’s mandate, 65 per cent of the IPO is reserved for retail investors and 35 per cent for institutional investors.
Addressing a press conference yesterday, S Venkatachalam (pictured), CEO, National Life and General Insurance Company, said investors can be a part of NLGIC’s strong and robust growth story by investing in its upcoming IPO.
“Our consistent performance speaks for itself and we look forward to a whole hearted support from all our valuable investors and we assure that we shall continue working towards continuous growth with customer focused products and services with a high level of expertise, technology and creating value for our customers, channel partners, stakeholders and investors. I would like to thank Oman for the consistent support over all the years which has enabled NLGIC’s growth and we look forward to their continued support,” Venkatachalam stated.
The IPO, he noted, is a “perfectly timed” one as NLGIC looks ahead to expand its fast growing businesses into new horizons and other potential markets.
The long-term financial performance of NLGIC reflects a strong leadership team, wide range of products, multi-channel distribution network, geographical spread across Oman and the UAE combined with sound risk management systems, he said.
The Gross Written Premium (GWP) topline of NLGIC has grown from RO 43.9 million in 2012 to RO 101.2 million in 2016 at a Compounded Annual Growth Rate (CAGR) of over 23 per cent. The net underwriting results has similarly grown at a CAGR of 19.2 per cent from RO 5.2 million in 2012 to RO 10.6 million in 2016. The Profit after Tax (PAT) has risen at a CAGR of 10 per cent from RO 3.2 million in 2012 to RO 4.7 million in 2016. The Return on Equity (ROE) has remained in the 16 – 24 per cent range over the years, touching a high of 24 per cent in 2013 and a ROE of 16 per cent in 2016 after considering a capital infusion of RO 16.5 million in 2016.
NLGIC has projected a strong performance for 2017-2020 with a Gross Written Premium of RO 172.7 million at a CAGR of 14 per cent over the projected period, PAT of RO 13.0 million at a CAGR of 29 per cent over the projected period and ROE of 20 per cent.
NLGIC has a presence in Oman and the UAE. The company is looking at expanding its footprint into Kuwait soon, while taking its expertise to other countries in the GCC region in the near future.