National Life and General Insurance Company’s OMR21.2 million-Initial Public Offering will open for a one month subscription on October 22. The company is offering 66.25 million shares at an offer price of 320 baizas per share. As per the Capital Market Authority’s mandate, 65% of the IPO is reserved for retail investors and 35% is reserved for institutional investors. NLGIC IPO opens on 22nd October and closes on 20th November, 2017 providing an opportunity for investors to be a part of this long term growth story.
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 excellent risk management systems. The Gross Written Premium (GWP) – Topline of NLGIC has grown from OMR 43.9 million in 2012 to OMR 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% from OMR 5.2 million in 2012 to OMR 10.6 million in 2016. The Profit after Tax (PAT) has risen steeply at a CAGR of 10% from OMR 3.2 million in 2012 to OMR 4.7 million in 2016. The Return on Equity (ROE) has consistently been in the 16%-24% range over the years, touching a high of 24% in 2013 and a ROE of 16% in 2016 after considering a capital infusion of RO 16.5 million in 2016 (See table for details).
NLGIC has a strong presence in Oman and the UAE. The company is looking at expanding its footprint into Kuwait soon. The insurance major plans to take its expertise to other countries in the GCC region in the near future.
NLGIC has put up a strong performance this year as well with the audited Gross Written Premium in June 2017 touching OMR 68.4 million, which is 57% of the projected annual estimate of OMR 119.1 million for FY2017. Almost 59% of the projected PAT (OMR 4.7 million) of OMR 8.0 million for 2017 has already been registered in the June audited figures.
The September figures (unaudited and pending Board approval) reflect a robust performance with the Gross Written Premium crossing OMR 90 million. The PAT has similarly touched OMR 7.1 million by September 2017 (a YTD increase of 190% over September 2016) thus achieving 89% of the Projected PAT for 2017.
NLGIC has projected a strong performance for 2017-2020 with a Gross Written Premium of OMR 172.7 million at a CAGR of 14% over the projected period, PAT of OMR 13.0 million at a CAGR of 29% over the projected period and ROE of 20%.
Investors can be a part of NLGIC’s strong and robust growth story by investing in it’s upcoming IPO. The IPO is a perfectly timed one as NLGIC looks ahead to expand its fast growing businesses into new horizons and other potential markets. Market veterans and investors have been eagerly waiting for this scrip and are expecting a bullish run at the ring of the bell.
“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,” said S.Venkatachalam, CEO, National Life and General Insurance Company.