As many as eight locally incorporated insurance companies, including a reinsurance firm, will offer their shares for public subscription within three years to comply with the recent amendments in insurance law, reported Times of Oman, noting that the Omani government has asked national insurance firms to float shares on the Muscat Securities Market (MSM) within three years, in addition to raising the minimum capital of insurance firms to from OMR 5 million to OMR 10 million.

The national insurance firms that are expected to float shares on the MSM are Al Ahlia Insurance Company, Muscat Insurance, Muscat Life Insurance, National Life Insurance, Oman & Qatar Insurance, Falcon Insurance and Vision Insurance. Moreover, Oman’s single reinsurance firm, Oman Reinsurance Company, will issue shares for public subscription, according to Ahmed Ali Al Mamari, acting director general of insurance supervision at the Capital Market Authority (CMA), who spoke to Times of Oman.

According to the new regulations, promoters will have to divest 40% in favour of investors.

It is worth noting that Oman has 22 insurance companies (11 locally incorporated and 11 branch operations of foreign firms), of which four companies, namely Dhofar Insurance, Oman United Insurance, Al Madina Takaful and Takaful Oman, are listed. Moreover, only Al Madina Takaful and Takaful Oman are Islamic insurance firms.

Of the 22 companies, 16 firms do not have the stipulated OMR 10 million minimum capital and six firms have either OMR10 million or more paid up capital.

Existing firms have been given a three-year grace period to raise their minimum capital to OMR10 million.

Commenting on the reasons for raising minimum capital base of insurance firms, Al Mamari said it will make these institutions large enough to underwrite more risks and retain the premium within the country.