Qatar Insurance Group’s Subsidiary Oman Qatar Insurance Company Announced the Launch of Its Initial Public Offering (IPO).

September 21, 2017

Oman Qatar Insurance Company (OQIC), a premier insurer in Oman and a subsidiary of QIC Group, Qatar’s leading insurer has attracted strong response from investors during the launch of its Initial Public Offering (IPO).

Recently the company hosted an investor roadshow in Muscat that attracted attendees from a broad range of investor groups, including institutional investors, high-net worth individuals, established family businesses, and investment analysts from brokerage houses. The senior management team of OQIC and its parent QIC Group interacted with the Muscat roadshow attendees and the media, and received an overwhelming response.  Plans are in place for holding a similar roadshow event in Salalah. 

Commenting on the event, Mr. Ali Al Fadala, Senior Deputy Group President & CEO of QIC Group stated, “OQIC has been playing a leading role in the insurance sector in Oman and brings with it strong credentials and the backing of its parent, QIC, which is the largest insurance group in the MENA region. A number of reasons make this a highly compelling investment opportunity – such as the experienced founders having an insurance industry track record of over 50 years. In addition to that QIC’s exemplary performance, well-defined growth strategy, prudent investment management and operational excellence make the offering attractive. OQIC with its highly diversified set of distribution channels in Oman, including digital, branches and bank assurance, along with its focus on select set of profitable segments differentiates the Company from the other participants in the Omani insurance industry.”

Elaborating on the company’s strengths, Mr. Navin Kumar, CEO of OQIC said: “We are extremely pleased with the strong interest and enthusiasm around the IPO of OQIC, which is a reflection of the fundamental strength of our company and its compelling investment case.”

OQIC is offering 25,000,000 offer shares at an offer price of Bzs 160 per offer share, (comprising a nominal value of Bzs 100 per offer share, premium of Bzs 58 per offer share and offer expenses of Bzs 2 per offer share).

Following the IPO, the company expects to generate a 5-year average dividend yield of c.10%. This compares favorably with the average dividend yield of 8% for the insurance companies currently listed on the Muscat Securities Market.  OQIC expects to pay its first dividend following the IPO in April 2018.  The IPO is priced at a discount of about 14% (P/B) to national peers.

The IPO subscription period will close on 5 October 2017. 

Subscription

Application form for the IPO is available for collection at any branches of the subscription banks: Bank Dhofar, National Bank of Oman and Oman Arab Bank. The Prospectus and key highlights of the issue are also available as a download from the OQIC website at www.oqic.com/IPO

About OQIC 

Established in 2004, OQIC is a subsidiary of Qatar Insurance Company and provides life and general insurance cover in Oman.  The company operates through five retail branches, digital and bank assurance channels, and has more than 30 point of sales through agencies and brokers.  OQIC believes in delivering innovative retail solutions for home, travel and motor Insurance to every segment of its customer base.  The company provides its services to some of the largest public and private sector companies in the energy, aviation, construction and engineering, media, and logistics sectors in the Sultanate of Oman. OQIC also serves as a link for providing insurance services across the GCC and helps connect overseas insurance interests through its global network.

OQIC’s parent, QIC, is a composite insurance and reinsurance group with a consistent performance history of over 50 years and a global underwriting footprint.  Founded in 1964, QIC was the first domestic insurance company in the State of Qatar. Today, QIC is the market leader in Qatar and a dominant insurer in the GCC and the larger MENA region.  The Group owns Qatar Re; a Bermuda-based global reinsurer, which was ranked as the 35th largest reinsurance company in the world by A.M. Best in 2016.  In 2014, QIC acquired Antares, a leading integrated insurance and reinsurance vehicle in Lloyd’s market in the United Kingdom.   QIC is one of the highest rated insurers in the Gulf region with a rating of A/Stable from Standard & Poor’s and A (Excellent) from A.M. Best.  In terms of profitability and market capitalization, QIC is the largest insurance company in the MENA region. QIC is listed on the Qatar Stock Exchange and has a market capitalization of over USD 5 billion.

OQIC is supported by QIC Group’s treaty facilities with highly reputed “A” or higher rated reinsurers from the global markets.  Moreover, OQIC’s local shareholder, Al Hosn Investment Company SAOC, a leading business house in the Sultanate of Oman, continues to provide invaluable support and guidance.