finance & economy

CMA places limits on overseas investments by insurance firms

April 8, 2021

Safety curbs: The decision obliged the companies to limit the investment of their assets outside the Sultanate to the countries, financial institutions and instruments with a credit rating not less than – BBB in accordance with Standard & Poor’s (S&P) rating or an equivalent

MUSCAT, APRIL 7
The Capital Market Authority (CMA) has issued an administrative decision specifying the credit rating for the investment of the assets of insurance and Takaful companies outside the Sultanate.
The decision obliged the companies to limit the investment of their assets outside the Sultanate to the countries, financial institutions and instruments with a credit rating not less than – BBB in accordance with Standard & Poor’s (S&P) rating or an equivalent.
The move comes to enhance the investments of the insurance sector and to deal with the economic changes and the ability of the companies to face the investment challenges in addition to the economic value of the local market and the role of insurers and their saving schemes.
The decision is based on Article 5 of the Rules for Investment of the Assets of Insurance and Takaful Companies which confer on the CMA the power to specify the minimum limit of credit rating for investment instruments as well as the countries and financial institutions.
The decision excluded the international bonds issued by the Omani Government to encourage the companies to invest in government bonds besides the unrated shares listed in the stock markets and investment funds and gave the companies the discretion to determine their risk appetite when investing in such instruments.
Insurance sector investments totalled RO 669.009 million at the end of 2020 (RO 634.793 million in 2019). Of this total, RO 414.38 million came from national insurance companies (RO 399.19 million in 2019), while RO 254.63 million was contributed by foreign insurance companies (RO 235.60 million in 2019).

omanobserver

Top News



finance & economy

MSX ends marginally lower
April 18, 2021
Spices, pulses, cereals among 488 food i...
April 18, 2021
BridgeTower Capital Launches Security To...
April 18, 2021