Last checked at 13 Mar 2008 07:01
Omega Insurance Holdings Limited13 March 2008 Omega Insurance Holdings Limited Results for the 12 Months to 31 December 2007 Highlights Financial •Net written premium US$196.3 million, up 121% (2006: US$88.9 million) •Profit before tax US$59.5 million, up 163% (2006: US$22.6 million) •Profit after tax US$50.5 million, up 226% (2006: US$15.5 million) •Earnings per share US$0.34 (2006: US$0.12) •Net assets per share US$2.09 (2006: US$1.80) •Group combined ratio 79.3% (2006: 78.8%) •Syndicate 958 combined ratio 74% (2006: 72%) •Return on equity 19.0% (2006: 7.9%) •Further dividend of 16.3 cents per share Operational •Omega US received AM Best A- rating and is licensed as a surplus lines insurer in 20 states. •Group reorganisation completed to ensure structure optimal from strategic, operational and financial perspectives. •Experienced management teams established for both Omega Specialty and Omega US. •Syndicate 958 continued unbroken track record of underwriting profits. Commenting on the results, Richard Tolliday, Chief Executive of Omega, said: "These are another excellent set of results. We have built an international insurance group with platforms in Bermuda, London, Cologne and the US and we arenow ideally placed to capitalise on our 28 year unbroken track record of profitable underwriting. Our core business lines continue to offer attractivemargins and our multi-platform strategy enables us to write more business inthose classes without compromising on quality. I am optimistic about the futureprospects of the Group". Enquiries Richard Tolliday, Omega Insurance Holdings Tel +1 (441) 294 6610John Coles Threadneedle Communications Tel 020 7936 9604 Chairman's Statement When I reported to you last year I was able to confirm the completion of thedevelopment of Omega's legal and operational structure. This enables ourstrategic aim of driving future growth for the Group, whilst capitalising on theexperience that has delivered 28 years of profitable underwriting througheffective cycle management. I am delighted therefore to be able to report that the 2007 year saw Omegadeliver on this powerful potential. The Group has achieved excellent financialperformance in 2007 whilst putting in place the operational infrastructure thatwill drive our growth in 2008 and beyond. I believe the Group has delivered onall its stated aims: completing the reorganisation of the Group to be positionedoptimally strategically, operationally and financially for the future; buildingout the teams who will run and grow the Group's platforms; distributing asubstantial element of earnings via dividends and providing an attractive returnfor investors. In short I believe the Group has demonstrated its ability in a short space oftime to turn a vision into a profitable and flourishing reality. Summary of result Our profit before tax of US$59.5 million, was up 163% on 2006 as the earningsstreams generated by the deployment of the Group's capital raised in 2005 beganto mature in the second year of operation of Omega Specialty Insurance CompanyLimited in Bermuda. Omega Specialty's underwriting includes reinsurances ofOmega Dedicated Limited and Lloyd's Syndicate 958, as well as its growing bookof reinsurance business with other customers. Gross written premiums for 2007 were up 110% to US$242.9 million (2006: US$115.6million) For Omega, 2007 was a year like 2006, with modest loss experience. The action wehad already taken to reduce the Group's exposure to under-priced non-US businessmeant that gross exposure to the European storm (Kyrill) in January 2007 waslimited to US$3.3 million, and the summer's multiple UK floods to some US$2.5million. Syndicate 958 continues its spectacular history of unbroken underwritingprofits. The Syndicate's 2005 year of account has been closed at a profit oncapacity of 8.78%. This figure is at the upper end of the previously publishedforecast range and reflects a remarkable result in a year which experiencedHurricanes Katrina, Rita and Wilma, losses that impacted the results of manyinsurers so severely. The Syndicate's forecast range of its expected return oncapacity for 2006 has been tightened to 14% to 19%. An initial forecast rangefor the 2007 year of account is a return of 7.5% to 17.5%. These actual andforecast results from these years powerfully demonstrate Omega's consistency ofperformance and exposure management, and lack of volatility which is the directresult of our experienced and prudent approach to the business of risk taking. Group Organisational Structure Over the past two years the Group has completed an extensive reorganisation toenable it to have the optimal corporate structure from a strategic, operationaland financial perspective. The Group has operations in Bermuda, London, Cologneand, most recently, in Chicago. 2007 was a year in which our focus was on the operational development of thenewer underwriting platforms. Not only has this meant achieving the critical A-(Excellent) AM Best rating for Omega US Insurance, Inc., which we received inDecember, but also the development of the management teams and the systems andprocesses required to run an international insurance operation efficiently andeffectively. Omega US now has surplus lines eligibility in 20 states. Applications arecurrently pending in further states. Omega US commenced underwriting at thestart of 2008 and we have great confidence in its significant contribution tothe Group going forward. Dividend We have consistently stated the Board's intention that Omega be highlydistributive, returning a substantial proportion of its earnings each year toinvestors. Consistent with this strategy, in November the Group paid a dividend of 7.7cents per share which equated to a distribution of 70% of its profit for theperiod to 30 June 2007. At the time of announcing this dividend, the Board alsoexpressed an intention to maintain this payout ratio for the year end 2007dividend. I am delighted to be able to confirm that the Board has approved an additionaldividend for 2007 of 16.3 cents per share. This equates to US$24.1 million andwhen combined with the November 2007 interim dividend of US$11.3 million,equates to 70% of the 2007 earnings being returned to shareholders. Thesedividends demonstrate the confidence the Board has in the current and futureprospects of the Group and it should be seen as confirmation of the importancethe Board places on dividends as a critical part of capital management andshareholder return. The dividend will be paid on 30 April 2008 to shareholderson the register at 11 April 2008. The Board reiterates its intention to pay a substantial part of the Group'searnings out as dividends in the future. Clearly, as we go forward developingand managing the Group in a world of challenges and opportunities, there mayfrom time to time be needs and opportunities that lead us to retain a largerelement of earnings to deploy resources to support growth. Strategy The Omega Group is an international insurance and reinsurance group,headquartered in Bermuda with operations in Bermuda, London, Chicago and Cologne. The corporate strategy of the Group has been to complement its Lloyd'sbusiness by establishing and growing underwriting businesses that are supportedby Omega's own capital. The Group continues to write business of the type wehave always written in London, applying the same disciplines we always have. TheGroup seeks, however, to create the opportunities which will attract a greatershare of that business by proactively taking ourselves to the marketplaces,other than London, where large parts of that business are transacted. Given the geographic focus of Omega's business, coupled with the importance ofBermuda as an insurance and reinsurance centre, Bermuda remains the naturallocation for our head office. 2007 has been about making the newer platforms fully and effectivelyoperational. As the Group has gone about this task we have remained clear thatwe will continue to adhere to the principles that have delivered profitsthroughout the many cycles of the past 28 years. I believe the financial resultsthat we have posted for 2007 demonstrate the importance we place in thisapproach. Corporate Activity On 7 February 2008 Omega announced that it was in discussions with a number ofparties who have expressed an interest in acquiring the Company. Discussions areongoing and we will announce any further developments as and when appropriate. Outlook The insurance market entered 2007 with rates on some core lines at an all timehigh in the post Katrina environment. Whilst the early signs of some ratepressure were visible, underwriting conditions remained very satisfactory forthe key elements of the Omega book into 2008. The lack of major catastrophic loss in 2007 is certainly leading to a weakeningof market conditions in some particular areas. Discipline does still remain inkey areas and, combined with low investment returns, gives cause for hope thatcommon sense will not be altogether abandoned any time soon. Omega is notentirely immune from this weakening and we are applying increased selection inour underwriting in a manner consistent with our approach in previous downturnsin the insurance cycle. However, rates, terms and conditions in the key areas ofour portfolio, particularly for the smaller to medium sized risks on which wefocus, are still attractive. The broader and deeper reach that the Group now has with the development ofOmega Specialty and Omega US makes us very positive about our ability to growprofitability our overall level of income in 2008 and beyond. The Executive Team A key area of focus for us in 2007 has been the broadening of the managementteam to ensure we have the people with not only the skills and energy but alsothe shared philosophy, that will enable us to grow whilst maintaining the focusthat has led to so many years of successful underwriting. To this end we have strengthened both underwriting and operations with key hiresin Syndicate 958, Omega Specialty and Omega US. Also, as anticipated when Ireported last year, we welcomed our new Group Finance Director, Penny James, tothe Board in June 2007. In summary therefore I believe this to have been another year of significantachievement for the Group, delivering fine performance through its underwritingoperations, developing the areas that will underpin future growth and enhancingour risk management processes and management reporting to reflect the needs ofan international business. This is the result of the combination of skills, discipline and experience whichcomprise the Omega team and the drive, energy and enthusiasm with which they areapplied by every member of it. On behalf of the entire Board, I would like torecord our appreciation for outstanding results from our outstanding team andexpress the confidence and optimism with which we look forward to the future. Walter Fiederowicz Chairman12 March 2008 Review of Operations and Financial Results 2007 Performance For 2007, the year under review, the Group's profit before tax was US$59.5million an increase of 163% on 2006 (2006: US$22.6 million). Profit after taxwas US$50.5 million (2006: US$15.5million). This is evidence of the successfulimplementation of our strategy of putting the Group's own capital at risk in anoptimal operational and financial structure. It represents earnings per sharegrowth of 183% and a return on equity of 19.0%. The result was driven by the technical result of US$33.4 million (2006: US$14.2million). The contribution from managing agent activities was US$25 million(2006: US$4.9 million) boosted by US$10.6 million from the revision of ourmethod for estimating the amount of profit commission earned in the year toalign with market best practice. Underwriting Performance Omega did not have material exposure to the loss events in 2007 and enjoyed arelatively benign year in claims experience. In the US, where the majority ofthe Group's catastrophe exposure is, Omega had only negligible exposure toCalifornian fires and New England ice storms. The Group's previous actions toreduce exposure in non-US areas due to inadequate pricing meant that Omega'sinvolvement in the European losses of 2007 was very modest with gross exposureto European storm Kyrill just US$3.3 million. Claims from the multiple UK floodsin the summer were just US$2.5 million. Market conditions remained steady in most core areas through the main renewalperiods in 2007, with the overall level being very attractive after the materialrate increases seen in the market following the impact of Hurricane Katrina in2005. The absence of severe loss in 2007 and the continued quest fordiversification, by companies with portfolios that do not have the inherentlybalanced composition of Omega's, have added to the downward pressure on themarket going into 2008. Pleasingly, the new marine energy insurance account has built more strongly thananticipated and losses to date have been negligible. A good share of well ratedbusiness, particularly in marine offshore energy, has been achieved. The lack of availability of retrocessional reinsurance cover in the market withappropriate coverage, at economic terms or from security of acceptable quality,acted to underpin the market through 2007. This has not changed materially for2008. Omega's portfolio has an inherent balance created by a diversity of bothgeographic exposure and business class. This balance, together with Omega'scomprehensively prudent approach to risk management, has been a majorcontributor to the record of underwriting profitability, shown in the results ofSyndicate 958, which reflect relatively low volatility. As a clear and tangibledemonstration of this, the Syndicate's 2005 underwriting year has closed at aprofit of 8.78%, notwithstanding Hurricanes Katrina, Rita and Wilma. Katrina wasthe world's largest ever insured, natural perils loss and impacted most severelyon the results and balance sheets of many insurers. In the 1 January 2008 renewal season when approximately 40% of the book isrenewed, rates have reduced by an estimated 5% when averaged across theportfolio. However, this must be seen in context and is a reduction on ratesthat were materially increased following Hurricane Katrina. The potentialremains for very attractive returns in Omega's portfolio in 2008. It has always been Omega's practice to manage through the market's cycles bybecoming increasingly selective in its underwriting as the market weakens. Thiswill continue to be an unbreakable rule. However, the areas of key focus inOmega's portfolio continue to trade at very attractive terms and conditions androbust margins. Growth is still achievable in the areas in which we specialise. 2007 2006Class analysis of written premium US$'000 US$'000Non-marine property insurance 59,777 25,086Property catastrophe treaty reinsurance 63,719 36,162Property per risk treaty reinsurance 14,913 9,511Professional indemnity insurance 15,526 8,929Motor insurance and reinsurance 14,832 8,207Marine insurance and reinsurance 42,947 13,824Liability insurance and reinsurance 19,102 7,364Other 12,041 6,536 -------- -------- 242,857 115,619 -------- -------- Group Underwriting Results 2007 2006 US$'000 US$'000Gross premiums written 242,857 115,619 -------- -------- Net earned premium 161,546 67,085Claims incurred, net of reinsurance (78,869) (32,152)Net operating charges (49,275) (20,728) -------- --------Underwriting profit 33,402 14,205 -------- -------- Omega Specialty During 2007 Omega Specialty wrote gross premiums of US$233.4 million (2006:US$104.9 million). This was comprised predominantly of: - a reinsurance of Omega Dedicated through which Omega Specialty assumed the risk of the majority of the share of Syndicate 958's capacity owned by the Group; - 17.5% quota share reinsurances of Syndicate 958's gross whole account; - a further 10% 'qualifying' quota share of Syndicate 958's gross whole account, effectively increasing the capacity of the syndicate sufficiently to support the new energy insurance book; - a book of third party reinsurances. Looking to 2008, Omega Specialty has renewed the contract with Omega Dedicatedand has a whole account quota share of Syndicate 958 at a level of 20% and a 50%quota share of the Omega US book. It is seeking to increase materially its otherinwards reinsurance business. For 2008 Syndicate 958's energy account has beensubsumed into the Syndicate's principal capacity and accordingly no qualifyingquota share is required. Omega Specialty's account has an inherent diversity and balance, reflecting itsproportional protection of Omega Dedicated and Syndicate 958's whole account.This is unlike most Bermudian reinsurers whose accounts are dominated by theircatastrophe portfolios and the commensurate peak exposures. Omega Specialty'searnings will therefore be more consistent and subject to less volatility thanan account focused far more heavily on catastrophe reinsurance. Omega Specialty is also growing its account of third-party reinsurances. Thecompany is seeking to underwrite reinsurance business similar in type andcomposition to that underwritten by Syndicate 958. Cedants are small to mediumsized insurance companies and, in the current market conditions, predominantlyUS domiciled. Omega Specialty has been pleased with the response it is receivingfrom both intermediaries and cedants. As part of the approach to developing continuity of process, philosophy andrelationships, Omega Specialty's Chief Underwriting Officer was Steve Edwards, amember of the Omega underwriting team in London. During 2007, as a plannedtransition process, Omega Specialty recruited Andrew Stapleton as ChiefUnderwriting Officer. Andrew has 20 years industry experience, having been inthe Bermuda market since 2003. Steve Edwards has now returned to the Londonteam, following a handover period during the second half of 2007. Syndicate 958 Syndicate 958 was established in 1979 to commence underwriting for the 1980 yearof account. It has closed every year of account since its formation at anunderwriting profit, creating an exceptional record of outperformance of theinsurance market. The Syndicate has a capacity of £249 million for 2008 and israted A (Excellent) by AM Best. Some 83.6% of the capacity of Syndicate 958 is supported by third-party Names.Omega's own capital supports 16.4% of Syndicate 958's stamp. Table - Syndicate 958 - Capacity and Year of accountprofit forecasts 2008 2007 2006 2005Capacity £249m £249m £249m £224mEffective Capacity including Qualifyingquota share with Omega Specialty £274mOmega Dedicated share of capacity 16.4% 16.4% 16.4% 12.9%Omega Group retained share of capacity 16.4% 15.2% 15.2% 0.5%Omega Group retained share of effective capacity 22.9%Profit after standard personal expenses- forecast 7.5% - 17.5% 14% - 19% 8.78% Note: For the 2007 year only, the capacity of the Syndicate was effectively increased by £25 million as a result of including a qualifying quota share to Omega Specialty. The table above shows that the Syndicate has closed 2005 with a profitable 8.78%return despite the major hurricanes experienced, Katrina, Rita and Wilma. Thisreturn is after strengthening the net Katrina reserves by US$25 million to US$49million to recognise the potential for further deterioration as a result ofadverse outcome in ongoing class actions involving other insurers. Table showing 100% syndicate Syndicate 958 businessfigures and ratios 2007 2006 2005 US$'000 US$'000 US$'000Gross premium written 560,850 462,755 438,407Net premiums earned 349,945 339,862 362,695Technical result before personal expenses 103,022 96,038 37,738Claims ratio 49% 41% 64%Expense ratio 25% 31% 29%Combined ratio 74% 72% 93% Omega US Omega US is an insurance company licensed in the state of Delaware andunderwriting business on a surplus lines basis. To date Omega US has beengranted eligibility to write in 20 states and applications are pending infurther states. Capitalised at US$50 million, from the proceeds of the placingin October 2006, the company received a rating of A- (Excellent) from AM Best inDecember 2007. Omega US commenced underwriting in the first quarter of 2008. Through 2007 thefocus was on the recruitment of an exceptionally talented and experienced seniormanagement team, securing eligibility in key states and building out thecompany's operational infrastructure. Omega US is developing a book of business very similar in composition of classand geography to the US property insurance account underwritten by Syndicate958. It is targeting small-sized, commercial, property-orientated business andseeking to underwrite predominantly in those geographic areas in the US that arenot directly accumulatory with the Group's peak catastrophe zones. It isintended that Omega US be developed in a way that is complementary to Syndicate958. Whilst dealing predominantly through agents already known to Omega, it willbe writing business that would not otherwise have been offered to the Syndicatein London. Response from brokers and agents has been extremely positive withmany willing to act as our 'sponsor' supporting our state applications. As reported in last year's accounts, John Curry has joined Omega as VicePresident of Underwriting of Omega US. Prior to joining Omega John was SeniorVice President of Marketing and Underwriting for United America IndemnityInsurance Group. He has 33 years of experience in the US insurance industry,focused very particularly on those areas of business which Omega US intends topursue. In addition to John, Wayne Bates has joined Omega US as its Chief OperatingOfficer. Wayne was previously with Burns and Wilcox, a major managing generalagent and prior to that was underwriting in the London insurance market. Hetherefore brings with him extensive experience of the industry. Omega Europe The Group established its operations in Germany in late 2003 to complement thedevelopment of Omega's European reinsurance account. Based in Cologne, it offersclients access to all of the Omega Group's services and is able to facilitatethe placement and servicing of reinsurance business with Syndicate 958. At afuture date Omega Europe could similarly facilitate the placement of businesswith Omega Specialty. The team in the Omega offices in Cologne offers a single point of contact forall enquiries relating to reinsurance business of either a proportional ornon-proportional basis. They are able to inform clients/brokers of the rates,terms and conditions offered by the Omega Group's underwriters and provideconfirmation of the line that will be underwritten. Following the placement of business with Syndicate 958, the team in Cologneagain offer a single point of contact for delivering documentation, wordings andaccounting information. Clients are able to contact the team in Cologne on allmatters, including the processing of all premiums and claims. Omega Europe has been extremely successful in bringing business to the Syndicatethat would not normally have been seen. International rates have been undersignificant pressure in 2007 as the rush for diversity by some companies fuelsundisciplined or ill-informed competition. Omega Europe has underwritten withfocus and discipline and let much business pass it by until terms improve. As aresult, its business is highly profitable and even now accounts for 16% ofSyndicate 958's gross written premium. Outlook The insurance market is experiencing a general softening, further fuelled by anabsence of severe losses in 2007. However, it is to be hoped that a greaterfocus within the industry on capital management, combined with reducinginvestment returns and the fact that companies are still retaining largerexposures net than was the case historically, will act to discourage theexcesses of competition. At Omega it is our own assets and attributes that giveus great cause for confidence. We believe we have an extremely powerfulcombination of ingredients. Our talented team of underwriters has the experienceto select and the discipline to decline. We have operations in all the rightplaces, allowing us to reach deeper into the markets for our target business.Our structure provides optimal financial efficiency. We therefore look forwardwith optimism and confidence to our growth and development in 2008 and beyond. Richard TollidayChief Executive Officer12 March 2008 Financial Review Table of financial highlights 2007 2006 US$'000 US$'000Gross written premium 242,857 115,619Net earned premium 161,546 67,085 -------- --------- Underwriting result 33,402 14,205Investment return 17,972 11,480Managing Agent's activities 25,004 4,920Group expenses (net of other income) (16,902) (8,016) -------- ---------Profit before tax 59,476 22,589 -------- ---------Profit after tax 50,536 15,491 -------- --------- Per share amounts- Net assets US$2.09 US$1.80- Earnings * US$0.34 US$0.12 - Dividend 24.0 cents 4.1 pence * The earnings per share figure is based on the weighted average number ofshares in issue during the period. Overview of financial result The Group has recognised a significant profit before tax of US$59.5 million(2006: US$22.6 million) during the year, principally derived from the Group'sincreased level of its own underwriting. In 2006 Omega Specialty for the first time wrote both specific reinsurances ofSyndicate 958 and a reinsurance of the corporate name, Omega Dedicated Limited,which wholly underwrites on Syndicate 958. In 2007 the Group benefited from theremaining earnings on the benign 2006 year of account as only approximately 60%of the earnings on a year of account are recognised in the opening calendaryear. 2007 further benefited from the growth and excellent rating environment onthe 2007 year of account. The underwriting result generated US$33.4 million(2006: US$14.2 million) of the overall result. The managing agency continues to contribute positively to the group result,again reflective of the positive underwriting results of Syndicate 958. Agencyfees and profit commission represents the vast majority of our other income ofUS$30.3 million (2006: US$11.8 million). Profit commission benefited by US$10.6million from a review of the method by which we estimate the level of profitcommission earned in the year, aligning us with market best practice. Investment return at US$18.0 million (2006 US$11.5 million), represents a yieldof 5.36%, boosted by the rally in bond values towards the end of the year. The operating expense ratio for the Group is 30.5% (2006: 30.9%). Thisdemonstrates the efficiency of the Group's operating model. Whilst this areawill undoubtedly increase slightly as we build out the operational platformsfurther, we remain confident that we can maintain an attractive operatingexpense ratio. Underwriting result During the year under review the Group had four main sources of underwritingincome. Firstly Omega Specialty supports the Group's own share of the underwriting inSyndicate 958 via a reinsurance of the dedicated corporate vehicle OmegaDedicated Limited. Of the corporate name participation in the Syndicate thebalance is not reinsured through to Omega Specialty and is written by thirdparties. Secondly, Omega Specialty underwrote a direct quota share reinsurance contractof Syndicate 958. The Syndicate typically purchased reinsurance from third partyreinsurers. However in the wake of the reinsurance markets and the 2004 and 2005catastrophe experiences no suitable cover with appropriate terms and conditionsat economic terms was offered to the Syndicate. Omega Specialty was able tooffer a whole account quota share reinsurance to the Syndicate. Similar wholeaccount quota share reinsurance cover has been continued since, with thecombined quota shares for the 2007 year of account equivalent to approximately27.5% of the Syndicate, in addition to Omega Specialty's reinsurance of OmegaDedicated, the corporate member. In 2008 the reinsurance of the corporate memberhas been renewed and a 20% quota share arrangement put in place with theSyndicate. Thirdly, Omega Specialty has developed its own book of business with otherparties. This represented US$13.0 million in 2007. This book is very similar innature to the business written in the Syndicate, focused predominantly at thistime on property catastrophe and property per risk. Finally, Omega Specialty also reinsured a small surplus treaty book of Syndicate958 for the 2006 and 2007 years of account. As a consequence of Omega Specialty's underwriting, the Group's retained netearned premium has increased to US$161.5 million (2006: US$67.1 million). As reported in the Group's underwriting report the benign loss experienceexperienced over the last 12 months has again resulted in an excellentunderwriting result being reported US$33.4 million (2006: US$14.2 million)before investment income. This represents a combined ratio for the calendar yearof 79.3% (2006: 78.8%). Future prospects Presently a significant proportion of Omega Specialty's underwriting is onlyfully recognised 12 to 18 months after the relevant year of account has begun.As a consequence each year will not only benefit from its own careful riskselection but the prudent risk selection from the previous years which continuesto earn through into the next calendar year. In addition to earning through inthe following calendar year, a year of account also continues to assess itsreserves as and when the remaining exposures expire. The addition of the energy insurance book has significantly slowed the pace ofpremium earnings, as by nature this book is written later in the year than muchof the Syndicate's business. The impact of this is a higher pool of earningsheld back for 2008 in relative terms, assuming of course the benign claimsexperience continues. The net unearned premium reserve held on the Group balancesheet at the end of 2007 is US$59.3 million (2006: US$25.4 million). As a result of this and the boost from earnings of the formative Omega USaccount, despite some possible contraction in the Syndicate in a tougher ratingenvironment, Omega currently remains confident that underwriting profitabilitywill be maintained. Managing agency Omega Underwriting Agents receives income from its managed Syndicate by way of amanaging agent's fee and a profit commission. The agency fee reimburses the agency for the management of a year of account.The year of account is normally closed at the end of the third year with work onthe closure of that year of account continuing into the first quarter of thefourth year. The agency fee is therefore recognised over the three open years ofa year of account and a small proportion into the fourth year reflecting theclosing of the year of account and the associated reporting. Profit commission is payable to the Agency by its managed Syndicate (Syndicate958) upon closure of a profitable underwriting year, in effect three years aftereach underwriting year has commenced. In accordance with generally acceptedaccounting practice the Agency is required to recognise the profit commissionahead of its receipt, accrued in line with the underlying earnings. The Managing Agency income can be further summarised as follows: Managing agent income 2007 2006 US$'000 US$'000 Profit commission recognised in the year 24,811 7,588Agency fees 3,656 3,218Expenses net of other income (3,463) (5,886) --------- ---------- 25,004 4,920 --------- ---------- During the year the Company reviewed its approach to the recognition of profitcommission in the Managing Agency, moving the approach in line with industrybest practice. The profit commission is therefore accrued in line with therecognition of the underlying earnings of the Syndicate for that underwritingyear. The effect of this is to accelerate profit of US$10.6 million from 2008into 2007. Future prospects With the introduction of the new energy insurance account, the profile of ourwritten premium has slowed in 2007 compared with 2006 with the account beingwritten later in the year than the historic norm for the Syndicate. This meansthat proportionately less of current year premium has earned in 2007 than in2006. This leaves us with an attractive bank of earnings ready to flow into2008, assuming loss experience remains benign. In addition for the 2008 year of account the Group still manages £249 million ofcapacity for Syndicate 958. Accordingly for 2008 the managing agent will derivefees and profit commission based on this amount less the Group's ownparticipation. Investment return The Group's investments comprise directly owned investments supporting ourunderwriting businesses, and our share of the Syndicate investments. Both setsof funds adopt a cautious investment strategy. All of Omega's financial investments are managed under the guidance of the GroupInvestment Committee which is responsible for setting the investment strategy,guidelines and the appointment of investment managers. The cautious investment strategy is designed to limit excessive fluctuations innon-underwriting results and is intended to ensure that shareholders' capital isavailable for employment in support of Omega's underwriting. The management of the Syndicate's investments are outsourced to investmentmanagers under the direction of the managing agent's Finance Committee. Aconservative investment strategy is applied to these funds reflecting theshort-tail nature of the Group's insurance portfolio and the annual venturenature of Lloyd's Syndicates. The priority in our portfolios has always been, and remains, one of capitalprotection first and return second. As the credit markets have becomeincreasingly volatile in 2007 the investment committee has reviewed its positioncarefully. As a result, some changes to investment guidelines have been made inboth the Syndicate and the Group companies to ensure the risk to our portfoliosis minimised. To this end, the portfolios are constructed such that there are no equities,holdings in structured investment vehicles or collateralised debt obligations.Asset backed paper is limited to holdings of US$1 million in the Syndicate. Ouronly remaining mortgage related securities are US$32 million of governmentagencies senior debt held in the Syndicate, of which the Group's share is US$5million. No write down in the value of any assets have been necessary and theGroup has not experienced any reduction in the liquidity of its assets. Cash is held either in deposits or in AAA rated Money Market accounts. For bothforms only leading banks are used. None of these money market funds are enhancedyield, rather their primary objective is capital protection. The funds can best be analysed as follows: Funds Average Return US$'000 %Syndicate funds 88,717 5.80Corporate premium funds 63,253 4.40Corporate funds supporting underwriting- Bermuda 203,957 5.56 --------- -------- 355,927 5.36 --------- -------- The proportion of the Syndicate applicable to the Group result is currently 15%.Based on this share the investments can be analysed as follows: Asset type Syndicate Group Share of Corporate Total Group Syndicate Assets US$'m US$'m US$'m US$'mGovernment Securities 261 39 88 127Government Agencies 32 5 - 5Corporate Debt 152 23 39 62Asset backed securities 1 - - -Cash Deposits 70 12 70 82Money Market Funds 16 2 70 72Deposits with credit institutions 50 8 - 8 -------- --------- ------- -------Total Invested assets 582 89 267 356 -------- --------- ------- ------- Future strategy and prospects The Group will continue to pursue a conservative investment strategy.Investments will continue to be made primarily in US dollar basedshort-duration, high-grade, fixed-income securities. The investment strategy will continue to seek to maximise the investment returnsbut only to the extent consistent with the principal aims of diversification ofrisk, the preservation of capital and liquidity of funds. Clearly our investment return in 2008 as in previous years will be dominated bythe performance of US treasuries and high grade corporate debt, and as such beheavily influenced by prevailing US treasury yields. The Group does not feel itappropriate at this stage of its development to increase the risk it carries inits investment portfolio to ensure investment yields are maintained. As a resulttherefore of recent cuts in interest rates by the US Federal Reserve Bank weexpect to see reduced investment income in 2008. Group expenses net of other income 2007 2006 $'000 $'000Other group expenses net of other income (16,111) (6,908)Finance costs (791) (1,108) ----------- -----------Net Group expenses (16,902) (8,016) ----------- ----------- 2007 has been a year of operational and structural development for Omega. Theteams have been put in place to support the Omega Specialty and Omega USplatforms as well as running an AIM listed Group. As a result of theseinvestments other group expenses net of other income, have increased to US$16.1million (2006: US$6.9 million). Whilst some further development is stillrequired to fully operationalise these platforms, much of this work is complete.As a result a further but much smaller increase in expenses should beanticipated in 2008, with a steadier picture thereafter. Foreign exchange management The majority of the Group's balance sheet assets, liabilities and exposures areUS dollar based as part of the Group's approach towards currency matching. TheGroup has adopted US dollars as its reporting currency to minimise currency riskon translation. Taxation The Group's effective tax rate for 2006 reflects the fact that Omega SpecialtyInsurance Limited was a controlled foreign company ('CFC') for UK tax purposesduring the year and therefore its profits are subject to UK taxation (by beingapportioned to Omega Underwriting Holdings Limited). The final stage of the Group's restructuring occurred on 23 March 2007 whenOmega Specialty was transferred to the direct ownership of Omega InsuranceHoldings Limited by means of dividend in specie. From this date Omega Specialtywas no longer a CFC and was no longer therefore subject to UK taxation. The impact of this has been a reduction of the Group's effective rate oftaxation to 15% for 2007 (2006: 31%). Dividend policy The Omega Group has made clear its intention to return a substantial part of itsprofit to shareholders in the form of dividends. In making the decision as to the affordability of such a dividend the Boardtakes into account both its current and anticipated future requirements. To theextent possible we return excess to shareholders. The Board recognises that indoing this there will be times when dividend levels are reduced due to increasedcapital needs to support growth plans for instance. However, having reviewed our plans for 2008 and beyond and considered thecurrent capital position, the board considers it appropriate to pay a furtherdividend of US 16.3 cents per share. Combined with the dividend of US 7.7 centsper share paid in November 2007, this represents a distribution of 70% of its2007 profit after tax. The Board sees this as demonstration of its commitment toshareholders to manage its capital base hard. It is also testament to theconfidence with which the Board views the future. Consolidated income statement Year ended 31 December 2007 2007 2006 US$'000 US$'000IncomeGross premiums written 242,857 115,619Outward reinsurance premiums (46,543) (26,680) -------- -------Net premiums written 196,314 88,939 Change in gross provision for unearned premiums (39,975) (15,997)Reinsurers share of change in the provision for unearned premiums 5,207 (5,857) -------- -------Net earned premium 161,546 67,085Investment return 17,972 11,480Other income 30,269 11,834 -------- -------Net revenue 209,787 90,399 -------- -------ExpensesInsurance claims (84,252) (52,360)Insurance claims recoverable from reinsurers 5,383 20,208 -------- -------Net insurance claims (78,869) (32,152)Net acquisition costs (44,954) (15,504)Other underwriting operating expenses (4,321) (5,224)Other corporate expenses (21,376) (13,822)Finance costs (791) (1,108) -------- -------Total expenses (150,311) (67,810) -------- -------Profit before tax 59,476 22,589Income tax (8,940) (7,098) -------- -------Profit after tax 50,536 15,491 -------- ------- Earnings per share - basic US$0.34 US$0.12Earnings per share - diluted US$0.33 US$0.12 Consolidated Balance Sheet As at 31 December 2007 2007 2006 US$'000 US$'000ASSETSCash and cash equivalents 82,063 81,348Financial investments 273,864 223,286Deferred acquisition costs 17,585 8,570Reinsurance assets 117,214 61,466Insurance receivables 18,553 15,688Prepayments and accrued income 25,080 5,992Other debtors 16,691 16,294Deferred tax assets 2,438 742Property and equipment 479 211Intangible assets 149 149 -------- -------Total asset 554,116 413,746 -------- -------EQUITYCalled up share capital 14,758 14,736Share premium account 147,694 247,641Contributed surplus 100,000 -Own shares (49) (98)Foreign exchange reserve 1,593 1,162Profit and loss account 44,606 1,960 -------- -------Total equity and reserves 308,602 265,401 -------- -------LIABILITIESInsurance contracts 193,000 103,155Trade and other payables 44,454 38,520Current income tax liabilities 7,245 1,629Deferred tax liabilities 815 5,041 -------- -------Total liabilities 245,514 148,345 -------- -------Total liabilities and equity 554,116 413,746 -------- ------- Net assets per share US$2.09 US$1.80 The financial statements were approved by the board of directors on 12 March2008 and were signed on its behalf by Richard Tolliday Penny JamesDirector Director Consolidated statement of changes in equityYear ended 31 December 2007 Share Share Contributed Own Foreign Profit Total capital premium surplus shares exchange and loss reserve US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Balance at 1 January 2007 14,736 247,641 - (98) 1,162 1,960 265,401Currency translation differences - - - - 431 - 431Tax on items taken directly to or transferred from equity - - - - - 360 360 ------ ------ ------- ------ ------ ------ ------Total income and expense for the year recognised directly in equity - - - - 431 360 791Profit for the year - - - - - 50,536 50,536 ------ ------ ------- ------ ------ ------ ------Total income and expense for the year - - - - 431 50,896 51,327 Vesting of own shares - - - 49 - (49) -Issue of new share capital 22 576 - - - - 598Share based payments - - - - - 3,125 3,125Dividends - - - - - (11,326) (11,326)Conversion of share premium - (100,000) 100,000 - - - -Reorganisation and listing costs - (523) - - - - (523) ------ ------ ------- ------ ------ ------ ------Balance at 31 December 2007 14,758 147,694 100,000 (49) 1,593 44,606 308,602 ------ ------ ------- ------ ------ ------ ------ Consolidated statement of changes in equityYear ended 31 December 2006 Share Share Merger Own Foreign Profit Total capital premium reserve shares exchange and loss reserve US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Balance at 1 January 2006 10,392 170,471 - (127) - 14,391 195,127 Currency translation differences - - - - 5,166 - 5,166 ------ ------ ------ ------ ------- ------ -------Total income and expense for the year recognised directly in equity - - - - 5,166 - 5,166Profit for the year - - - - - 15,491 15,491 ------ ------ ------ ------ ------- ------ -------Total income and expense for the year - - - - 5,166 15,491 20,657 Vesting of own shares - - - 42 - (42) -Issue of new share capital 2,493 63,308 - - - - 65,801Costs of issue - (3,808) - - - - (3,808)Share based payments - - - - - 2,158 2,158Special interim dividend of 4.1 pence per ordinary share - - - - - (9,337) (9,337)Group reorganisation (12,885) (229,971) - 85 - 242,771 -Establishment of Omega Insurance Holdings Limited 14,736 393,329 (140,491) (98) (4,004) (263,472) -Reorganisation and listing costs - (5,197) - - - - (5,197)Transfer merger reserve - (140,491) 140,491 - - - - ------ ------ ------ ------ ------- ------ -------Balance at 31 December 2006 14,736 247,641 - (98) 1,162 1,960 265,401 ------ ------ ------ ------ ------- ------ ------- Consolidated cash flow statementYear ended 31 December 2007 2007 2006 US$'000 US$'000 Cash flows from operating activities Cash generated from operations 68,561 47,399Interest paid (279) (455)Income tax paid (8,896) (1,547) -------- --------Net cash inflows from operating activities 59,386 45,397 -------- --------Cash flow from investing activitiesNet purchase of investments (48,951) (173,900)Purchase of tangible fixed assets (332) (193) -------- --------Net cash (outflow) from investing activities (49,283) (174,093) -------- --------Cash flows from financing activitiesEquity dividends paid (11,326) (9,337)Issue of share capital 598 65,801Costs of issue - (3,808)Reorganisation and listing costs (523) (5,197) -------- --------Net cash (outflow)/inflow from financing activities (11,251) 47,459Net (decrease) in cash and cash equivalents (1,148) (81,237)Cash and cash equivalents at start of period 81,348 156,929Foreign exchange currency movements 1,863 5,656 -------- --------Cash and cash equivalents at end of period 82,063 81,348 -------- -------- Notes to the consolidated financial statements 1. The financial information in this announcement has been extracted from the audited accounts of Omega International Holdings 2. Accounting Policies The consolidated accounts are prepared in accordance with InternationalFinancial Reporting Standards ("IFRS"), adopted for use by the European Union ("EU") and as issued by the International Accounting Standards Board Basis of Preparation Under AIM rules for companies listed on the alternative investment market of theLondon Stock Exchange, Omega (the Group) is required to prepare its consolidatedfinancial statements for the year ended 31 December 2007 in accordance with IFRSendorsed by the European Commission ("EC"). These are the Group's firstconsolidated financial statements under IFRS and IFRS 1 has been applied. TheGroup has accordingly restated its previously reported 2006 consolidated resultsand financial position. The Group's consolidated accounts have been prepared using accounting policiesthat are in accordance with IFRS and applied in accordance with the provisionsof the Bermuda Companies Act 1981. IFRS comprises standards issued by theInternational Accounting Standards Board ("IASB") and interpretations issued bythe International Financial Reporting Interpretations Committee ("IFRIC") asadopted by the EU. The financial statements have been prepared on the historical cost basis exceptfor financial investments and share options which are measured at their fairvalue. Consolidated financial statements values are presented in USD rounded to thenearest $'000 unless otherwise stated. Since the transition to IFRS the following standards and interpretations havebeen issued that would be applicable to the Group: IFRS 8 "Operating segments" IFRIC 11 - IFRS 2 "Group and Treasury Share Transactions" The directors anticipate that the adoption of these standards andinterpretations will have no material impact on the financial statements of theGroup. Basis of Consolidation The consolidated accounts incorporate the accounts of Omega Insurance HoldingsLimited and all its subsidiary undertakings ("the Group") drawn up to 31December 2007. Omega Insurance Holdings Limited was formed in August 2006 andbecame the new parent company of the Group as a result of the Groupreorganisation in November 2006, accounted for in a manner akin to a pooling ofinterests for the years presented. The figures at 1 January 2006 incorporate theaccounts of the previous Group parent company, Omega Underwriting Holdings PLC,and all its subsidiary undertakings. The accompanying consolidated financialstatements have therefore been prepared on the basis that the Company existedfor all years presented. The financial statements of subsidiaries are prepared for the same reportingyear as the parent company. Consolidation adjustments are made to convertsubsidiary accounts prepared under local GAAP into IFRS so as to remove anydifferent accounting policies that may exist. The Group's share of the transactions, assets and liabilities relating to itsSyndicate participation is included in the consolidated financial statements. Inter-company transactions and balances between Group companies are eliminated. IFRS 1 First-time adoption of International Financial Reporting Standards The Group has taken advantage of the permitted exemption under IFRS 1 to treatcumulative translation differences for all foreign operations as zero on thedate of transition, 1 January 2006. Estimates and assumptions The preparation of financial statements requires the use of estimates andassumptions that affect the reported amounts of assets and liabilities, and thedisclosure of contingent assets and liabilities. Although these estimates arebased on management's best knowledge of current events and actions, actualresults may ultimately differ from those estimates. Foreign currency translation a) Functional currency Items included in the financial statements of each of the Group's entities aremeasured using the currency of the primary economic environment in which theentity operates (the functional currency). The consolidated financial statementsare presented in US dollars, the functional currency of the Company and thepresentation currency of the Group. b) Transactions and balances Transactions in foreign currencies are recorded at the rates of exchangeprevailing on the dates of the transactions or a suitable average rate. At eachbalance sheet date, monetary assets and liabilities that are denominated inforeign currencies are retranslated at the rates prevailing at the balance sheetdate. Exchange differences arising on retranslation are included in the incomestatement. Non-monetary assets, being assets without a corresponding cash flowsuch as unearned premium reserves and deferred acquisition costs, are translatedin the balance sheet at the exchange rate prevailing at the date of the originaltransaction. c) Group companies The results and financial position of Group entities which have a differentfunctional currency are translated into the Group presentation currency asfollows: - assets and liabilities are translated at the closing rate at the balance sheet date - income and expenses are translated at average exchange rates all resulting exchange differences are recognised in the statement of changes inequity. Insurance contracts a) Premiums Written premiums comprise premiums on contracts incepted during the financialyear as well as adjustments made in the year to premiums written in prioraccounting periods. Estimates are made for pipeline premiums, representingamounts due but not yet notified. For delegated authority business estimates of how much business will attach to afacility is based on experience and information provided by the broker.Estimates are updated on a regular basis. It is assumed that risks attaching tothe master facility incept evenly across the period of the facility andtherefore only that proportion of risks that have incepted to the masterfacility by the balance sheet date are reported within written premium in thesefinancial statements. All premiums are shown gross of commission payable to intermediaries and areexclusive of taxes and duties levied thereon. Written premiums are earned over the period of the policy on a timeapportionment or more appropriate basis, having regard to the exposure of therisk. b) Reinsurance premium ceded Outwards reinsurance premiums are accounted for in the same accounting period asthe premiums for the related direct or inwards business being reinsured. c) Unearned Premiums The provision for unearned premiums represents the proportion of gross writtenpremium which is estimated to relate to exposures in subsequent financialperiods. The change in the unearned premium provision is taken to income so thatrevenue is recognised in accordance with the period of risk. d) Acquisition Costs Acquisition costs, comprising commission and other costs related to theacquisition of insurance contracts are deferred to the extent that they areattributable to premiums unearned at the balance sheet date. Deferredacquisition costs are amortised over the period in which the related revenue isearned. Claims a) Claims incurred Claims incurred comprise the estimated cost of all claims occurring during theperiod, whether reported or not, including related direct and indirect claimshandling costs and adjustments to outstanding claims provisions from previousperiods. b) Outstanding claims provisions The provision for claims outstanding is made on an individual case basis and isbased on the estimated ultimate cost of all claims notified but not settled bythe balance sheet date, together with the provision for related claims handlingcosts. The provision also includes the estimated cost of claims incurred but notreported ("IBNR") at the balance sheet date based on statistical methods. These methods generally involve projecting from past experience of thedevelopment of claims over time to form a view of the likely ultimate claims tobe experienced for more recent underwriting, having regard to variations in thebusiness accepted and the underlying terms and conditions. For the most recentyears, where a high degree of uncertainty arises from projections, estimates maybe based on assessments of the business accepted and underwriting conditions.The Group does not discount its liabilities for unpaid claims. Where applicable,deductions are made for salvage and other recoveries. The reinsurers' share of provisions for claims is based on the amounts ofoutstanding claims and projections for IBNR, net of estimated irrecoverableamounts, having regard to the reinsurance programme in place for the class ofbusiness, the claims experience for the year and the current security rating ofthe reinsurance companies involved. The provision for claims outstanding is based on information available at thebalance sheet date. Significant delays are experienced in notification andsettlement of certain claims and accordingly the ultimate cost of such claimscannot be known with certainty at the balance sheet date. Subsequent informationand events may result in the ultimate liability being less than, or greaterthan, the amount provided. Any differences between provisions and subsequentsettlements are dealt with in the income statement of later periods. c) Liability adequacy test Provision is made where the expected cost of claims and expenses arising afterthe end of the financial period from contracts concluded before that dateexceeds the provision for unearned premiums, net of deferred acquisition costs,premiums receivable and related investment return. The provision is calculated by reference to classes of business which aremanaged together. Investments a) Financial assets at fair value through the income statement The Group has classified its financial investments as "fair value throughincome" to the extent that they are not reported as cash and cash equivalents.This classification has been determined by management based on the decision atthe time of acquisition and reflects the fact that the investment portfolios aremanaged, and their performance evaluated, on a fair value basis. The fair valuesof quoted financial investments are based on current bid prices. Unlistedinvestments for which a market exists are stated at the average price at whichthey are traded on the balance sheet date or the last trading day before thatdate. Purchases and sales of investments are recognised on the trade date, whichis the date the Group commits to purchase or sell the assets. These areinitially recognised at fair value, and subsequently re-measured at fair valuebased on quoted bid prices. Investments are derecognised when they have beensold. Changes in the fair value of investments are included in the incomestatement in the period in which they arise. b) Derivative financial instruments The Group's activities expose it to fluctuations in foreign currency exchangerates. The Group uses foreign exchange forward contracts to hedge theseexposures. The Group does not use derivative financial instruments forspeculative purposes. Derivatives are initially recognised at fair value on the date on which aderivative contract is entered into and are subsequently re-measured at theirfair value. Fair values are based on observable market conditions. Changes inthe fair value are recognised immediately in the income statement. c) Investment return Investment return comprises all investment income, realised investment gains andlosses and movements in unrealised gains and losses, net of investment expenses,charges and interest. Realised gains and losses on investments are calculated as the differencebetween sale proceeds and purchase price. Unrealised gains and losses oninvestments represent the difference between the valuation at the balance sheetdate and their valuation at the previous balance sheet date or purchase price ifacquired during the year, together with the reversal of previously recognisedunrealised gains and losses in respect of investments disposed of in the currentyear. Other income Other income comprises; agency fees, management fees and profit commissioncharged by the Group to third party members of Syndicate 958; and miscellaneousother income. Agency fees are charged to a year of account and earned over four years untilits expected closure, in line with the services provided. Other management feesare a recharge of expenses incurred and are recognised in the same period as therelated expense. Profit commission is receivable on closure of the relevant Lloyd's year ofaccount, normally after three years. It is recognised as earned on an annualbasis to match the related underwriting profits. Profit commissions due aftermore than one year are held at fair value which is the discounted present valueof the nominal amount expected to be received. Other expenses Other underwriting operating expenses are recognised on an accruals basis. Thesecomprise the expense directly attributable to the Group's underwritingoperations such as acquisition costs, remuneration and other underwritingexpenses. They include the Group's share of Syndicate operating expenses and thecosts of membership of Lloyd's. They are stated net of contributions from quotashare reinsurers. Other corporate expenses are recognised on an accruals basis. They compriseother group operating expenses not attributable to underwriting. Employee benefits a) Pension The Group provides defined contribution pension schemes for the benefit ofemployees. Contributions are charged to the income statement in the same periodas the related service is provided. b) Share based payments The Group operates a number of executive and employee share schemes. Inaccordance with IFRS 2 the fair value of equity-settled share-based payments toemployees is determined at the date of grant and is expensed on a straight-linebasis over the vesting period based on the Group's estimate of shares or optionsthat will eventually vest. In the case of options granted, fair value ismeasured by a binomial model the material inputs of which are: share price atdate of the grant; expected dividend yield; expected volatility; risk freeinterest rate; and employee turnover. When the options are exercised, the proceeds received, net of transaction costs,are credited direct to equity. Income taxes The tax expense represents the sum of the current tax and deferred tax. a) Current income tax The tax currently payable is based on taxable profit for the year. Taxableprofit differs from net profit as reported in the income statement because itemsof income and expense are taxed in different periods, and it excludes items thatare never taxable or deducted. The Group's liability for current tax iscalculated using tax rates applicable as at the balance sheet date. Current income tax is charged or credited in the income statement, except whenit relates to items charged or credited directly to equity, in which case thecurrent tax is also dealt with in equity. b) Deferred income tax Deferred tax is recognised on differences between the carrying amounts of assetsand liabilities in the financial statements and the corresponding amounts usedin the computation of taxable profit, and is accounted for using the balancesheet liability method. Deferred tax liabilities are generally recognised forall taxable temporary differences and deferred tax assets are recognised to theextent that it is probable that taxable profits will be available against whichdeductible temporary differences can be utilised. Such assets and liabilitiesare not recognised if the temporary difference arises from goodwill or from theinitial recognition (other than in a business combination) of other assets andliabilities in a transaction that affects neither the tax profit nor theaccounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheetdate and reduced to the extent that it is no longer probable that sufficienttaxable profits will be available to allow all or part of the asset to berecovered, or to the extent that it has been utilised. Deferred tax is calculated at the tax rates based on the enacted orsubstantially enacted tax laws expected to apply in the period when theliability is settled or the asset is realised. Deferred tax is charged orcredited in the income statement, except when it relates to items charged orcredited directly to equity, in which case the deferred tax is also dealt within equity. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and short-termdeposits with an original maturity of three months or less. For the purpose of the consolidated cash flow, cash and cash equivalents consistof cash and cash equivalents as defined above, net of outstanding bankoverdrafts. Property and equipment Property and equipment is stated at cost less accumulated depreciation and anyimpairment in value. Depreciation is calculated on a straight line basis overthe estimated useful life of the asset as follows: Fixtures and fittings - over 5 years Computer hardware - over 3 years An item of property and equipment is derecognised upon disposal or when nofuture economic benefits are expected to arise from the continued use of theasset. A gain or loss arising on derecognition of the asset is calculated as thedifference between the net disposal proceeds and the carrying amount of theitem. Any such gain or loss is recognised directly in the income statement. Intangible assets - Syndicate participation Syndicate capacity purchased at auction is recognised at cost. It is consideredto have an indefinite useful economic life and is therefore not amortised. Syndicate capacity is reviewed at each balance sheet date for impairment byreference to the future expected profit streams of Syndicate 958 and the amountof any impairment is recognised directly in the income statement. Insurance receivables Insurance receivables are recognised and carried at the recoverable amount. Thecarrying value of insurance receivables is reviewed for impairment wheneverevents or circumstances indicate that the carrying amount is greater than therecoverable amount, with the impairment adjustment recorded in the incomestatement. Provisions A provision is recognised when the Group has a present legal or constructiveobligation, as a result of a past event, which is probable will result in anoutflow of resources and when a reliable estimate of the amount of theobligation can be made. Leases Rentals payable under operating leases are taken to the profit and loss accounton a straight line basis over the lease term. Own Shares Own shares are stated at cost and shown as a deduction from shareholders' funds.No gain or loss is recognised in the income statement on the purchase, sale,issue or cancellation of the company's shares. Trade and other payables Trade and other payables are recognised on an accruals basis, based on amountsowed at the balance sheet date. 3. Risk Management Risk Management Framework The Group manages and monitors its key risks through the board committeestructure, with specific committees being given the responsibility formonitoring and managing specific risks. It uses and continues to develop a riskand control register as the central tool in this process to enable the Board toassess the relative scale and importance of the risks inherent in the business.Alongside the management controls in place, it is intended to protect theshareholder from excessive volatility in earnings and/or deterioration in itscapital position. The Risk Management Framework and monitoring thereof is the responsibility ofthe Group Audit Committee. The Board's view of the key risk areas is as follows: Insurance risk Insurance risk is the risk that the claims payable on an insurance orreinsurance book of policies outweigh the premiums charged. Such a risk couldcrystallise as a result of under pricing premiums, a major claim event such as ahurricane, or inadequate reserving for claims. The expert management of insurance risk is core to our business proposition. Inunderwriting its reinsurance and insurance policies the underwriters use skilland experience and knowledge of how the claims have developed in the past tounderstand the appropriate level of premium required on a policy. Omega'sbusiness is predominantly low premium short tail business in areas which it hasbeen familiar with for many years. Omega has been working with many of themanaging agents and brokers for a number of years, and therefore the majority ofour business lines are mature. As a result the underwriters and claims managerhave a good understanding of how claims develop. There are a number of key controls which limit the amount of insurance risktaken. Specifically a business plan is prepared and agreed and progress againstthis is monitored. As part of this business planning process, limits on theamount of business each underwriter may write in his or her respective class areset and can only be exceeded with the sanction of senior management. Some insurances are written through binder agreements where the Group is boundby other agents. The Group maintains long term relationships with these agents,giving confidence as to the quality of underwriting and nature of the books.There are clear authority limits in place and the business is monitored byOmega. The nature of the Omega book means it is diversified in a variety of ways tohelp balance the exposure. Peak exposures are monitored by the review of'Realistic Disaster Scenarios' which seek to estimate the impact of a certainloss events, such as windstorms and earthquakes. Omega has developed a comprehensive reinsurance programme. This combines bothpolicies to limit exposure to specific risks and events with some whole accountcovers to protect shareholder capital in the event of a combination of majorloss events. Over time the pricing and quality of terms available onretrocessional reinsurance cover varies. Omega's underwriters assess theavailability of quality reinsurance each year and adjust their business volumeand type according to their overall net exposure to losses. Composition of the Portfolio The Omega Group's portfolio has an inherent balance created by a diversity ofboth geographic exposure and business class. The exact balance is adjusteddependent on rate strength in a particular niche or field at any one time,considered against our maximum exposures. Non-marine Property Insurance (25 per cent of gross premiums written in 2007): The account remains core to Omega and is comprised of predominantly low value,commercial risks. It is written through a series of managing agents with whom wehave long standing relationships. The regionalised nature of these agents addsto the inherent diversification within the book. Property Catastrophe Treaty Reinsurance (26 per cent of gross premiums writtenin 2007): The focus of this account in which Omega is an established underwriter is thereinsurance of smaller to medium sized insurance companies. Property Per Risk Treaty Reinsurance (6 per cent of gross premiums written in2007): This account is written with a methodology and approach consistent with thatemployed on the Property Catastrophe Treaty Reinsurance account, with a similarbias towards the US and reinsuring smaller to medium sized insurers. Professional Indemnity Insurance (6 per cent of gross premiums written in 2007): Omega's account focused predominantly on small assureds in the US. Motor Insurance and Reinsurance (6 per cent of gross premiums written in 2007): The majority of the insurance element of the account is vehicle physical damagecover in the US and the reinsurance element is comprised of reinsurances ofEuropean and UK motor insurers, covering both physical damage and liability. Marine Insurance and Reinsurance (18 per cent of gross premiums written in2007): The account is comprised principally of reinsurances of the direct marineaccounts of insurers, on both an excess loss basis and proportional basis. In2007 the account was further diversified by the addition of the new energyinsurance account covering both on and offshore energy exposures. Liability Insurance and Reinsurance (8 per cent of gross premiums written in2007): Most of the liability insurance underwritten by Omega is the restricted coveragegiven in conjunction with the writing of commercial property insurances. Thereinsurances are of European and UK general liability insurers on a risk excessbasis. Other (5 per cent of gross premiums written in 2007): Classes categorised as "other" include Omega's underwriting, on either aninsurance or reinsurance basis, of satellites, aviation, war, fine art, personalaccident and kidnap and ransom. Omega underwrites these classes on anopportunistic basis and therefore expands and contracts the individual lines ofbusiness according to the market conditions. Reinsurance Process As well as a diversified portfolio, the Group maintains a reinsurance programmeto protect its capital against extreme loss events. The exact nature of theprogramme is influenced by the availability and price and quality of reinsurancecoverage in the market place. The Group will only place reinsurance withcounterparties it believes have the financial strength to stand by theircontracts in stress scenarios and where the terms of the contract offer realbenefit. The capital supporting the Group's current underwriting resides in OmegaSpecialty. For 2008 onwards, the capital in Omega US will also be supportingmaterial levels of underwriting activity. Omega Specialty benefits from bothreinsurance within the Syndicate which protects quota share reinsurers as wellas the Syndicate itself and a tailored program of its own. Within the Syndicate the reinsurance programme consists of: - Direct and facultative cover to limit exposure to an individual or group of risks. - Excess of loss cover to protect the whole account should there be a series of loss events that drive total claims above a certain limit for the portfolio - Industry Loss Warranties which offer protection from a major event that impacts a series of different kinds of risks In addition, the Syndicate quota shares a proportion of their business to OmegaSpecialty, so that in effect a proportion of the risks and rewards of businesswritten are shared with Omega Specialty and supported by Omega Specialty. In 2008 Omega US will purchase reinsurances externally, including whole accountprotection. This is in addition to a quota share with Omega Specialty. Reserving The Group conducts a detailed reserving process on a quarterly basis. TheSyndicate reserving process is controlled by the Finance Committee, asub-committee of the Omega Underwriting Agency board. The Group's reserves arederived by understanding and reviewing Syndicate reserves position and thenadjusting for variations in the OSIL reinsurance programme and direct book. The reserves established at any point in time will either be more or less thaneventually required and reserving is therefore an area of considerablejudgement. The main areas of uncertainty are likely to be: - A large loss can result in complex litigation which may make it difficult to estimate the total claim or the share being apportioned to the Group. - Catastrophe losses such as may result from hurricanes or earthquakes can take months or years to develop as claims are slow to notify and loss adjusters may revise their estimates as time passes. - Long tail liability classes where the development of claims is very slow and therefore notifications and data upon which reliable projection may be based is limited. Omega has very limited exposure to long term liability classes. To give an indication of the degree of sensitivity of the result to reserves,the table below illustrates the impact to profit and equity of a 1% movement inthe gross ultimate loss ratio, assuming all other variables remain the same. Impact on Impact on profit before tax equity* US$'000 US$'000+ 1% gross ULR (1,925) (1,809)- 1% gross ULR 334 324 * Impact on equity reflects adjustments for tax when applicable. To ensure the appropriate level of claims reserve is achieved, case reserves aredetermined on a case by case basis by the claims manager to ensure anappropriate provision is raised for each claim notified. For older years thesecase reserves will represent the majority of the claims provisions due to theshort tail nature of the Omega book. Then on a portfolio basis, future claimspayments are projected based on the historic claims development pattern on thatbook. This is used to determine the amount of provision required for claims thathave been incurred but not yet reported. In more recent underwriting years thiscomprises a much greater proportion of the overall reserves and hence they aresubject to a greater degree of uncertainty. Milliman, the Group's independent actuaries, complete an independent reservingexercise based on actuarial techniques that involve projecting the level offuture claims payments based on historic data and market benchmarks. The resultsof both processes are compared to derive their chosen loss ratios. Given the similarity of the Group and Syndicate books of business, the Syndicateloss ratios are used to derive the Omega Specialty reserving adjusting for localvariations, until they have adequate data experience of their own portfolio. As the claims development tables suggest, the Group has demonstrated aconsistent approach with prudent reserving. As a result of this approach, theSyndicate has a long history of positive prior year reserve releases. Claims development The group's underwriting business is predominately managed on an underwritingyear of account basis. The following claims development table includes the Group's participation onSyndicate 958, and the claims development information of the Bermuda operationon an underwriting year of account basis. All years reported are translated atthe exchange rate ruling on 31 December 2007. The Group's participation on theold closed years is based on the share of the most recent closed year into whichthe old years were reinsured. Gross claims development Year of account Ultimate claims atend: 2003 2004 2005 2006 2007 US$'000 US$'000 US$'000 US$'000 US$'000Year 1 17,031 36,808 68,650 62,950 83,349Year 2 13,972 45,364 76,784 59,002 -Year 3 13,573 43,878 77,519 - -Year 4 13,087 43,740 - - -Year 5 12,658 - - - - ------- ------- ------- ------- -------31 December 2007 12,658 43,740 77,519 59,002 83,349Claims paid (11,176) (37,481) (58,096) (23,698) (13,126)Unearned element of gross claims - - - (2,086) (14,664) ------- ------- ------- ------- -------Outstanding & IBNR claims 1,482 6,259 19,423 33,218 55,559 115,941 ------- ------- ------- ------- -------All prior years O/S & IBNR 3,452 -------Balance sheet 119,393 ------- Net claims development Year of account Ultimate claims atend: 2003 2004 2005 2006 2007 US$'000 US$'000 US$'000 US$'000 US$'000Year 1 16,104 22,748 28,597 55,527 73,306Year 2 13,281 27,414 28,445 50,879 -Year 3 12,914 25,096 30,298 - -Year 4 12,379 24,856 - - -Year 5 11,931 - - - - ------- ------- ------- ------- -------31 December 2007 11,931 24,856 30,298 50,879 73,306Claims paid (10,478) (19,213) (14,924) (21,357) (11,949)Unearned element of net claims - - - (2,062) (10,233) ------- ------- ------- ------- -------Outstanding & IBNR claims 1,453 5,643 15,374 27,460 51,124 101,054 ------- ------- ------- ------- -------All prior years O/S & IBNR 2,465 -------Balance sheet 103,519 ------- The Group has taken advantage of the exemption in IFRS 4 which permits an entitynot to disclose information about claims development that occurred earlier thanfive years before the end of the first financial year in which it applies thestandard. Realistic Disaster Scenarios ('RDS') The Group monitors its exposure to stress scenarios through the calculation andreview of Realistic Disaster Scenarios. These are designated storm paths/lossevents set by Lloyd's and they are supplemented where appropriate by ones thatthe Group believe may be more applicable to the specific Omega portfolio. For each scenario, the risk exposures in the relevant zone are identified andthen Probable Maximum Loss factors (PML) are applied to it to determine theprobable maximum loss for that scenario. These probable maximum losses areexpected only to be incurred in extreme events with an estimated probability of1 in 100 years. The board's review and monitor these PML's to ensure they are comfortable andthey sit within their risk tolerance. Credit risk Credit risk represents the risk of loss arising from default of thecounterparties. The following are the key areas where an insurance company isexposed to credit risk. The main risks are that - the Group is unable to recover on its reinsurance programme, - is unable to recover premium - claims monies held by intermediaries or the Group's financial assets are reduced in value due to liquidity or solvency issues with the counterparty. Reinsurance credit risk is mitigated by ensuring that only appropriate andsuitably capitalised and rated reinsurance carriers are allowed to form part ofthe Syndicate's and Omega Specialty's reinsurance programme. The Group has anexcellent track record in terms of reinsurance recoveries. The UnderwritingCommittees and operational Boards within the Group monitor closely thereinsurance programmes to ensure this is continued and have specific criteria toprevent reinsurance contracts being placed with carriers with inadequatefinancial strength. Brokers and Intermediaries credit risk. The Group continues to deal with brokersand intermediaries with whom it has long-standing relationships. 80% of theSyndicate's business is conducted with brokers with whom it has had andmaintained a relationship for over ten years. The Group's underwriting is notdependent upon the typical market concentration of leading brokers and, inrecent years, only two brokers have contributed greater than 10% of the Group'spremium income. The Group will continue to adopt a consistent philosophy withregards to its use of brokers and intermediaries. Financial investment and cash and cash equivalents credit risk. All of the Groupcompanies operate within the investment guidelines laid out by the InvestmentCommittee of Omega Insurance Holdings. These guidelines stipulate thepermissible types of investments, maximum duration, counterparties, minimumacceptable ratings and counterparty exposure limits. Counterparty limits areapplied both in terms of maximum concentrations with specific organisations andin terms of minimum credit rating criteria for the portfolio. Adherence to these guidelines and monitoring of overall investment performanceis the responsibility of each company within the group and is reviewed by theGroup's investment committee. During the year under review the Group hasinvested principally in short-term bank deposits and AAA rated mutual funds withhigh quality financial institutions or fixed income bonds rated AA or above. The following credit risk table in respect of cash and cash equivalents,financial investments, reinsurance assets and insurance receivables providesinformation regarding the credit risk of the Group by classifying the assetsaccording to credit ratings of counterparties. These amounts represent themaximum credit risk exposure. 31 December 2007 Note AAA AA A BBB Unrated Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Cash and cash equivalents - 82,063 - - - 82,063Financial investments 206,160 45,196 22,508 - - 273,864Reinsurance assets a - - 99,915 139 2,891 102,945Insurance receivables b, c - - - - 18,553 18,553Other debtors - - - - 16,691 16,691 ------ ------ ------ ------ ------ ------- 206,160 127,259 122,423 139 38,135 494,116 ------ ------ ------ ------ ------ ------- 31 December 2006 Note AAA AA A BBB Unrated Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Cash and cash equivalents - 81,348 - - - 81,348Financial investments 85,379 124,642 12,406 - 859 223,286Reinsurance assets a - - 48,854 33 4,330 53,217Insurance receivables b, c - - - - 15,688 15,688Other debtors - - - - 16,294 16,294 ------ ------ ------ ------ ------ ------- 85,379 205,990 61,260 33 37,171 389,833 ------ ------ ------ ------ ------ ------- a) Amounts recoverable from reinsurers on claims outstanding and trade receivables arising out of reinsurance operations (excludes reinsurers share of unearned premium).b) Trade receivables arising out of direct operations.c) Insurance receivables are generally due from customers and intermediaries that do not tend to be rated. Impairment The Group considers reinsurance ratings, notified disputes and collectionexperience in determining which assets should be impaired. As at 31 December 2007 there were US$370,000 (2006: US$107,000) of reinsuranceassets that were impaired. The following table shows the amounts recoverable from reinsurers on claims paidat the year end that were past due but not impaired. 31 December 31 December 2007 2006 US$'000 US$'0000 - 3 months past due 509 5323 - 6 months past due 493 2006 - 12 months past due 1 -More than 12 months past due 77 3 ----------- ----------Total past due 1,080 735 ----------- ---------- Liquidity risk Liquidity risk represents the risk that there is insufficient cash available tomeet liabilities when they become due. The Group Investment Committee monitorsthe Group's exposure to liquidity risk by reviewing future expected cash flows,and by aligning the average asset duration with the average liability duration.The investment portfolios are high quality fixed income bonds and as such anearly realisation due to a major claim event should not trigger materialimpairment of value. * The table below analyses monetary assets and liabilities of the Group by thecontractual maturity or expected settlement date. At 31 December 2007 Balance sheet* Up to 1 year 1 to 3 years 3 to 5 years Over 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000AssetsCash and cash equivalents 82,063 82,063 - - - 82,063Financial investments 273,864 117,900 145,742 8,793 1,429 273,864Reinsurance assets 102,945 94,410 5,367 2,448 720 102,945Insurance receivables 18,553 18,553 - - - 18,553Other debtors 16,691 16,691 - - - 16,691 ------ ------- ------ ------- ------ ------ 494,116 329,617 151,109 11,241 2,149 494,116 ------ ------- ------ ------- ------ ------LiabilitiesInsurance contracts 119,393 61,535 34,676 17,037 6,145 119,393Trade and other payables 35,715 35,715 - - - 35,715 ------ ------- ------ ------- ------ ------ 155,108 97,250 34,676 17,037 6,145 155,108 ------ ------- ------ ------- ------ ------ At 31 December 2006 Balance sheet* Up to 1 year 1 to 3 years 3 to 5 years Over 5 years Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000AssetsCash and cash equivalents 81,348 81,348 - - - 81,348Financial investments 223,286 188,196 34,339 699 52 223,286Reinsurance assets 53,217 43,702 5,222 3,010 1,283 53,217Insurance receivables 15,688 15,688 - - - 15,688Other debtors 16,294 16,294 - - - 16,294 ------ ------- ------ ------- ------ ------ 389,833 345,228 39,561 3,709 1,335 389,833 ------ ------- ------ ------- ------ ------LiabilitiesInsurance contracts 69,525 39,212 16,500 9,560 4,253 69,525Trade and other payables 30,449 30,449 - - - 30,449 ------ ------- ------ ------- ------ ------ 99,974 69,661 16,500 9,560 4,253 99,974 ------ ------- ------ ------- ------ ------ The nature of insurance is that the requirements of funding cannot be predictedwith absolute certainty. The amounts and maturities in respect of insuranceliabilities are based on management's best estimate based on past experience. Collateral As a result of Syndicate 958 writing regulated US and Canadian business, it isrequired to collaterise a number of Lloyd's trust funds in respect ofoutstanding claims relating to this business. Collateral is provided in the formof cash. Omega Specialty maintains two letter of credit ("LOC") facilities in relation toits reinsurance of Syndicate 958, and funds at Lloyd's (FAL) in the name of ODLfor its participation on Syndicate 958. In addition, OSIL has ring-fenced assetsof $37,500,000, collateralised reinsurance balances with the Syndicate. Omega US Insurance maintains funds in a designated fund to support its licencein Delaware and New York. Market risk Market risk arises where the value of assets and liabilities changes as a resultof movements in foreign exchange rates, interest rates and market price. It isthe responsibility of the Group Investment Committee to monitor and managemarket risk. In addition, where considered appropriate, individual companies within the Groupmay appoint suitable investment managers to manage the medium and longer termcash surpluses. Any such appointment must be ratified by the Group's investmentcommittee. Market price risk The Group adopts an extremely conservative approach to its investment portfolioas it believes that at this stage of development the business should be focusedon insurance risk and returns. As a result the Group's investments guidelines donot allow investments in equities or speculative currency positions. Holdingsare limited to cash deposits, cash money market funds with major banks and goodquality fixed income investments, including treasuries, government agency debtand corporate debt. Interest rate risk Interest rate risk is managed through use of durations. The short tail mature ofthe Group's liabilities means the Group sets target duration on each of itsportfolios of between 1.5 and 2 years. The high quality portfolio combined withthe short average duration serves to limit the Group's exposure to movements ininterest rates. As an indication the table below shows the impact to profit andequity of the revaluation of the assets at the balance sheet at the year end, asa result of a movement of 25 basis points in interest rates. The sensitivitiesassume all other variables remain the same. Profit before Impact to tax Equity* US$'000 US$'000+ 25 basis points (311) (274)- 25 basis points 563 451 * Impact on equity reflects adjustments for tax when applicable. Foreign exchange As an international Group, Omega has liabilities and cash flows in a number ofcurrencies. To minimise volatility in earnings as a result of movements inexchange rates the Group seeks to hold assets in currencies to broadly match theexpected cash flows. As the Group predominantly transacts US centric business,the functional currency of the Group is US dollars, minimising the risk ofvolatility due to balance sheet translation. Where a known cash flow is expectedin a mismatched currency it may be hedged with a forward contract. The Group Investment Committee is responsible for the management and monitoringof foreign exchange risk. The table below illustrates the exposure to foreign exchange risk, summarisingthe carrying value of total assets and liabilities by currency: At 31 December 2007 US $ UK £ Can$ Euro Total US$'000 US$'000 US$'000 US$'000 US$'000Assets 438,776 84,106 8,251 22,983 554,116Liabilities (169,102) (47,574) (7,877) (20,961) (245,514) ------- ------- -------- ------- --------Net assets 269,674 36,532 374 2,022 308,602 ------- ------- -------- ------- --------At 31 December 2006 US $ UK £ Can$ Euro Total US$'000 US$'000 US$'000 US$'000 US$'000Assets 331,738 61,537 3,422 17,049 413,746Liabilities (96,181) (34,150) (3,082) (14,932) (148,345) ------- ------- -------- ------- --------Net assets 235,557 27,387 340 2,117 265,401 ------- ------- -------- ------- -------- The table below shows the impact to profit and equity of a change in theexchange rates of Sterling, Canadian dollar and the Euro to the US dollar,assuming all other variables remain the same. 31 December 31 December 31 December 31 December 2007 2007 2006 2006 Equity* Profit before Equity* Profit before Tax Tax US$'000 US$'000 US$'000 US$'0005% increase in exchange rate (620) (736) (333) (436)5% decrease in exchange rate 620 736 333 436 * Impact on equity reflects adjustments for tax when applicable. Capital Management The total amount of capital of the Group excluding intangible assets isUS$308,453,000 (2006: US$265,252,000). The Group adopts an active approach towards capital management, seeking toreturn excess capital to shareholders as demonstrated by the dividending of 70%of the interim and full year profits. In determining the required amount of capital the Board consider: - Regulatory solvency requirements in Omega Specialty - Regulatory solvency requirements in Omega US - The capital required to support Omega Dedicated's corporate membership of Syndicate 958 - The level of capital required to support our ratings in each rated entity The relevant boards monitor the solvency position against regulatoryrequirements. Although both Omega US and Omega Specialty have specific funding and capitalrequirements, these are less demanding than the capital levels required tosupport the ratings, in practice meeting asset strength to support the ratingsalso means regulatory requirements are met as well. The solvency levels aretherefore monitored and reported to the respective bodies, but the main focus ofmanagement's attention is the understanding of the impact of business plans anddecisions on the 'BCAR', AM Best's capital ratio which is one of the keydeterminants in rating decisions. The BCAR effectively is a ratio of requiredcapital/ actual capital, where required capital is determined by applyingstandardised capital loadings for each type of risk. The actual capital iscalculated in stress circumstances, i.e. the rated entity must demonstrate ithas adequate capital even after a major catastrophe loss. Management review both the impacts of the plan on the BCAR and any managementdecisions, adjusting reinsurance programme or gross premium if required to meetthe requirements. For the Syndicate an 'individual capital assessment' is carried out each year,using stochastic modelling techniques and the management team's judgement as tothe financial impact of risks crystallising. The model then derives the amountof capital required to ensure the company has positive net assets over thecoming year to a 99.5% confidence level. This is then reviewed and used byLloyd's to determine the required capital ratio for each member supporting theSyndicate's capacity. For the Syndicate's 2008 year of account, OmegaDedicated's capital ratio figure is 43.5%. In 2008, Omega Dedicated represents16.4% of the Syndicate's overall capacity. All externally imposed capital requirements have been complied with during theyear. Operational Risk Operational risk is the risk of a loss due to a breakdown of systems andcontrols processes within the organisation. The Group monitors operational riskthrough the risk register process which was developed in the Syndicate and hasbeen rolled out across the Group. The most significant operational risks identified in the risk register are: 1. Implementation of new Group wide underwriting platform. The Group is inthe process of implementing a single underwriting platform solution for each ofits trading entities. The Group has employed the services of an experiencedexternal consultant to oversee and facilitate the implementation process. Thechosen I.T. service provider is a proven provider of underwriting systems forboth International Insurance Companies and Lloyd's syndicates. An internal working group of senior management has been established to managethe implementation. 2. Resource Management. As the Group continued its expansion in 2007 itidentified the need for new senior management personnel to enhance itsmanagement and underwriting capabilities. This led to senior appointments inboth its existing and new trading operations. Resource management continues tobe kept under close review. 4. Segmental Information a) Basis of segmentation The Group is organised into three distinct underwriting operations being theGroup's participation on Syndicate 958, Bermuda reinsurance, and the newunderwriting centre set up in the US. The Lloyd's underwriting agency, along with Omega Europe (Germany) operates as aseparate reporting business segment. Segment results, assets and liabilities include items directly attributable to asegment, as well as those items that can be allocated on a reasonableness basis. Certain revenues and expenses are incurred relating to central functions, whichalong with certain related assets and liabilities are retained at the corporatecentre level, 'Other'. Residual income and expenditure not allocated to other segments has beenretained at the corporate centre level 'Other'. Included within gross written premiums of Bermuda reinsurance is premiums fromOmega Dedicated Limited of US$82,886,000 (2006: US$65,953,000) and from Omega USInsurance, Inc. US$250,000 (2006: US$Nil) on reinsurance contracts undertaken atcommercial rates. The primary segment information is as follows: (i) Income statement by segment Year ended 31 December 2007 Syndicate 958 Bermuda US underwriting Lloyd's Other Eliminations Total participation reinsurance business underwriting agency US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Writtenpremium classanalysisNon-marinepropertyinsurance 23,199 57,353 - - - (20,775) 59,777Propertycatastrophetreatyreinsurance 21,163 61,771 - - - (19,215) 63,719Property perrisk treatyreinsurance 5,533 14,217 - - - (4,837) 14,913Professionalindemnityinsurance 6,460 14,795 - - - (5,729) 15,526Motorinsurance andreinsurance 6,312 14,297 - - - (5,777) 14,832Marineinsurance andreinsurance 17,572 41,260 - - - (15,885) 42,947Liabilityinsurance andreinsurance 7,605 18,258 - - - (6,761) 19,102Other 4,750 11,448 - - - (4,157) 12,041 ------ ------ ------ ------- ------ ------ ------Gross premiumswritten 92,594 233,399 - - - (83,136) 242,857 ------ ------ ------ ------- ------ ------ ------ Gross premiumsearned 86,237 193,754 - - - (77,109) 202,882Premiums cededto reinsurers (80,731) (37,464) (250) - - 77,109 (41,336) ------ ------ ------ ------- ------ ------ ------Net earnedpremium 5,506 156,290 (250) - - - 161,546Investmentreturn 511 14,155 1,486 359 1,634 (173) 17,972Other income 845 (845) - 30,169 501 (401) 30,269 ------ ------ ------ ------- ------ ------ ------Net revenue 6,862 169,600 1,236 30,528 2,135 (574) 209,787 ------ ------ ------ ------- ------ ------ ------ExpensesInsuranceclaims (36,401) (79,666) - - - 31,815 (84,252)Insuranceclaimsrecoverablefromreinsurers 33,627 3,571 - - - (31,815) 5,383 ------ ------ ------ ------- ------ ------ ------Net insuranceclaims (2,774) (76,095) - - - - (78,869)Netacquisitioncosts (1,459) (43,495) - - - - (44,954)Otherunderwritingoperatingexpenses (298) (4,023) - - - - (4,321)Depreciation - - - (73) (6) - (79)Share optioncharge - - - - (3,125) - (3,125)Othercorporateexpenses - - - (5,092) (13,481) 401 (18,172)Finance - - - - (964) 173 (791)costs ------ ------ ------ ------- ------ ------ ------Total expenses (4,531) (123,613) - (5,165) (17,576) 574 150,311 ------ ------ ------ ------- ------ ------ ------Profit beforetax 2,331 45,987 1,236 25,363 (15,441) - 59,476 ------ ------ ------ ------- ------ ------ ------ Claims ratio 50.4% 48.7% 48.8%Expense ratio 31.9% 30.4% 30.5%Combined ratio 82.3% 79.1% 79.3% Year ended 31 December 2006 Syndicate 958 Bermuda US underwriting Lloyd's Other Eliminations Total participation reinsurance business underwriting agency US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Writtenpremium classanalysisNon-marinepropertyinsurance 15,708 23,611 - - - (14,233) 25,086Propertycatastrophetreatyreinsurance 24,421 32,705 - - - (20,964) 36,162Property perrisk treatyreinsurance 6,293 8,522 - - - (5,304) 9,511Professionalindemnityinsurance 6,042 7,816 - - - (4,929) 8,929Motorinsurance andreinsurance 5,472 7,617 - - - (4,882) 8,207Marineinsurance andreinsurance 9,460 12,094 - - - (7,730) 13,824Liabilityinsurance andreinsurance 4,963 6,349 - - - (3,948) 7,364Other 4,316 6,183 - - - (3,963) 6,536 ------ ------ ------ ------- ------ ------ ------Gross premiumswritten 76,675 104,897 - - - (65,953) 115,619 ------ ------ ------ ------- ------ ------ ------ Gross premiumsearned 71,668 76,201 - - - (48,247) 99,622Premiums cededto reinsurers (66,391) (14,393) - - - 48,247 (32,537) ------ ------ ------ ------- ------ ------ ------Net earnedpremium 5,277 61,808 - - - - 67,085Investmentreturn 324 8,755 - 189 2,212 - 11,480Other income - - - 11,813 21 - 11,834 ------ ------ ------ ------- ------ ------ ------Net revenue 5,601 70,563 - 12,002 2,233 - 90,399 ------ ------ ------ ------- ------ ------ ------ExpensesInsuranceclaims (39,268) (35,513) - - - 22,421 (52,360)Insuranceclaimsrecoverablefromreinsurers 37,226 5,403 - - - (22,421) 20,208 ------ ------ ------ ------- ------ ------ ------Net insuranceclaims (2,042) (30,110) - - - - (32,152)Netacquisitioncosts (399) (15,105) - - - - (15,504)Otherunderwritingoperatingexpenses (1,094) (4,130) - - - - (5,224)Depreciation - - - (69) - - (69)Share optioncharge - - - - (2,158) - (2,158)Othercorporateexpenses - - - (6,824) (4,771) - (11,595)Finance - - - - (1,108) - (1,108)costs ------ ------ ------ ------- ------ ------ ------Total expenses (3,535) (49,345) - (6,893) (8,037) - (67,810) ------ ------ ------ ------- ------ ------ ------Profit beforetax 2,066 21,218 - 5,109 (5,804) - 22,589 ------ ------ ------ ------- ------ ------ ------ Claims ratio 38.7% 48.7% 47.9%Expense ratio 28.3% 31.1% 30.9%Combined ratio 67.0% 79.8% 78.8% (ii) Balance sheet by segment As at 31 December 2007 Syndicate 958 Bermuda US underwriting Lloyd's Other Eliminations Total participation reinsurance business underwriting agency US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Insurance 63,485 171,191 - - - (81,324) 153,352Investment 88,717 203,957 48,837 6,048 8,368 - 355,927Other 7,340 3,086 61 32,871 2,324 (845) 44,837 ------ ------ ------ ------- ------ ------ ------Total assets 159,542 378,234 48,898 38,919 10,692 (82,169) 554,116 ------ ------ ------ ------- ------ ------ ------ Insurance 99,058 155,126 - - - (61,184) 193,000Other 55,522 1,056 933 3,416 12,572 (20,985) 52,514 ------ ------ ------ ------- ------ ------ ------Total liabilities 154,580 156,182 933 3,416 12,572 (82,169) 245,514 ------ ------ ------ ------- ------ ------ ------ Capital expenditure - 210 10 112 - - 332 ------ ------ ------ ------- ------ ------ ------ As at 31 December 2006 Syndicate 958 Bermuda US underwriting Lloyd's Other Eliminations Total participation reinsurance business underwriting agency US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000Insurance 57,637 73,966 - - - (45,879) 85,724Investment 50,689 180,731 1,013 1,720 70,481 - 304,634Other 8,244 142 132 13,689 1,181 - 23,388 ------ ------ ------ ------- ------ ------ ------Total assets 116,570 254,839 1,145 15,409 71,662 (45,879) 413,746 ------ ------ ------ ------- ------ ------ ------ Insurance 75,618 65,837 - - - (38,300) 103,155Other 38,687 5,836 74 5,935 2,237 (7,579) 45,190 ------ ------ ------ ------- ------ ------ ------Total liabilities 114,305 71,673 74 5,935 2,237 (45,879) 148,345 ------ ------ ------ ------- ------ ------ ------ Capital expenditure - - - 193 - - 193 ------ ------ ------ ------- ------ ------ ------ (iii) Other information by segment The secondary reporting segment of the group is by geographical segment. Thegeographical basis under which the Group operates is, United States, UnitedKingdom, Other EU countries and Other, incorporating the Rest of the World. The segmental analysis of gross written premium is based on location of risk.Total assets are allocated based on the locations of the underlying asset. Year ended 31 December 2007 Gross Premium Total Capital Written Assets Expenditure US$'000 US$'000 US$'000US 149,559 438,776 220UK 31,300 84,106 34Other EU countries 24,122 8,251 78Other 37,876 22,983 - --------- --------- --------- 242,857 554,116 332 --------- --------- --------- Year ended 31 December 2006 Gross Premium Total Capital Written Assets Expenditure US$'000 US$'000 US$'000 US 70,978 331,738 -UK 15,369 61,537 21Other EU countries 15,463 3,422 172Other 13,809 17,049 - --------- --------- --------- 115,619 413,746 193 --------- --------- --------- 5. Investment Return 2007 2006 US$'000 US$'000Financial investments at fair value through income - Interest income 8,402 8,505Cash and cash equivalents - Interest income 7,943 2,519Net realised gains/(losses) on investments 1,227 (58)Net unrealised gains on investments 360 50Derivative fair value gains and losses 40 464 --------- --------- 17,972 11,480 --------- --------- 6. Other income 2007 2006 US$'000 US$'000Profit commission 24,811 7,588Management fees 3,656 3,218Management charges to syndicate 1,676 967Other income 126 61 --------- --------- 30,269 11,834 --------- --------- During the year the Group reviewed the method of estimation of the recognitionof profit commission in the Managing Agency, moving the approach in line withindustry best practice. The profit commission is, therefore, accrued in linewith the recognition of the underlying earnings of the Syndicate for thatunderwriting year. This resulted in additional profit commission recognised ofUS$10,600,000 in the 2007 calendar year which would have been recognised inlater years under the old method. 7. Acquisition costs 2007 2006 US$'000 US$'000Net expenses in relation to acquisition cost 53,969 19,386Movement of deferred acquisition costs (9,015) (3,882) --------- --------- 44,954 15,504 --------- --------- 8. Other underwriting operating expenses 2007 2006 US$'000 US$'000Administrative expenses 5,023 4,848Foreign exchange (gains)/losses from underwriting (702) 376 --------- --------- 4,321 5,224 --------- --------- 9. Other corporate expenses 2007 2006 US$'000 US$'000Staff costs 14,422 8,889General corporate expenses 6,166 3,522Operating leases charges 398 -Auditors fees 1,047 1,273Depreciation 79 69Foreign exchange (gains)/losses (736) 69 --------- --------- 21,376 13,822 --------- --------- 10. Earnings per share Earnings per share are based on the profit attributable to shareholders and theweighted average number of shares in issue during the period. For the dilutedearnings per share the weighted average number of shares in issue is adjusted toreflect the dilutive effect of the future exercise of share options. 2007 2006 US$'000 US$'000Profit for the period in US$'000 50,536 15,491Weighted average number of shares in issue 146,860,622 124,817,278Dilutive average number of shares in issue 152,503,304 127,868,344Earnings per share:Basic (US$) 0.34 0.12Diluted (US$) 0.33 0.12 11. Dividends Amounts recognised as distributions to equity shareholders in the period: 2007 2006 US$'000 US$'0002007 interim dividend of US 7.7cents per common share 11,326 -2006 special interim dividend of GBP 4.1pence per ordinary share - 9,337 The share trust waived its rights to dividends over 490,308 shares (2006:980,616). The directors propose an additional dividend for the year of US16.3 cents percommon share, US$24,056,000 based on shares in issue. 12. Net insurance claims 2007 2006 US$'000 US$'000Claims paid 49,947 41,311Reinsurers' share of claims paid (19,157) (34,975) ---------- ---------Net claims paid 30,790 6,336 Movement in insurance liabilities 34,305 11,049Reinsurers' share of movement in insurance liabilities 13,774 14,767 ---------- ---------Net movement in insurance liabilities 48,079 25,816 ---------- ---------Net insurance claims 78,869 32,152 ---------- --------- 13. Cash and cash equivalents 2007 2006 US$'000 US$'000Cash at bank and in hand 22,514 9,127Short term bank deposits 59,549 72,221 --------- --------- 82,063 81,348 --------- --------- Included in cash and cash equivalents are amounts totalling US$59,398,000 (2006:US$22,031,000) not available for use by the Group which are held within theLloyd's syndicate or as Funds at Lloyd's. 14. Financial Investments 2007 2006 US$'000 US$'000Financial Investments at fair value through incomeDebt securities and other fixed income securities 194,195 41,681Deposit with credit institutions 74,831 181,238Funds held in overseas deposits 4,838 171Derivative financial investment - 196 --------- --------- 273,864 223,286 --------- --------- Group financial investments include investments held by Group companies and theGroup's share of syndicate assets: 2007 2006 US$'000 US$'000Group investments 197,497 181,605Syndicate investments 76,367 41,681 --------- --------- 273,864 223,286 --------- --------- 15. Reinsurance assets 2007 2006 US$'000 US$'000Reinsurers' share of unearned premium 14,269 8,249Reinsurers' share of claims outstanding 15,874 21,059Debtors arising from reinsurance operations 87,071 32,158 --------- --------- 117,214 61,466 --------- --------- 16. Insurance receivables 2007 2006 US$'000 US$'000 --------- ---------Debtors arising out of direct insurance operations 18,553 15,688 --------- --------- The carrying amounts disclosed above represent reasonable approximate fairvalues at the year end. 17. Prepayments and accrued income 2007 2006 US$'000 US$'000Prepayments 256 41Accrued investment income 3,227 267Profit commission 21,597 5,684 --------- --------- 25,080 5,992 --------- --------- Profit commission of US$21,597,000 (2006: US$5,684,000) included above is dueafter one year. It relates to amounts earned on open years of account which willnot be received until the year of account closes. The carrying amount disclosed above represent reasonable approximate fair valuesat the year end. 18. Other debtors 2007 2006 US$'000 US$'000Trade debtors - 47Due from syndicate members 1,132 775Other syndicate debtors 5,828 6,672VAT recoverable 79 263Profit commission closed years 8,976 8,409Other debtors 676 128 --------- --------- 16,691 16,294 --------- --------- The carrying amount disclosed above represent reasonable approximate fair valuesat the year end. 19. Share capital 2007 2007 2006 2006 Number US$ Number US$Authorised:Common sharesof US$0.10each 10,000,000,000 1,000,000,000 10,000,000,000 1,000,000,000Allotted andfully paid: Common sharesof US$0.10each 147,581,010 14,758,101 147,355,563 14,735,556 Movement in year relevant to equity shareholders in Omega Group Ordinary shares of GBP£0.05 in Omega Underwriting Number Par ValueHoldings PLC: ------------- ----------- Shares in issue at 1 January 2006 120,840,411 £6,042,020Issue of new shares in placing October 2006 26,515,152 £1,325,758Shares replaced with Omega Insurance HoldingLimited shares in November 2006 (147,355,563) £(7,367,778) Common shares of US$0.10 in Omega InsuranceHoldings Limited:Shares issued to replace Omega UnderwritingHoldings PLC shares in November 2006 147,355,563 US$14,735,556 ------------- ----------- Shares in issue at 31 December 2006 147,355,563 US$14,735,556 ------------- ----------- Issue of new shares 225,447 US$22,545 ------------- -----------Share in issue at 31 December 2007 147,581,010 US$14,758,101 ------------- ----------- 20. Insurance Contract assets and liabilities 2007 2006 Insurance Reinsurance Net Insurance Reinsurance Net contracts assets contracts assets US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Provisionforclaims 54,769 (8,743) 46,026 30,720 (11,172) 19,548reportedProvisionsforclaimsincurredbut not reported(IBNR) 64,624 (7,131) 57,493 38,805 (9,887) 28,918 119,393 (15,874) 103,519 69,525 (21,059) 48,466Provisionforunearned premium 73,607 (14,269) 59,338 33,630 (8,249) 25,381 Totalinsurancecontracts 193,000 (30,143) 162,857 103,155 (29,308) 73,847 ------ -------- ------ ------- -------- ------ The provision for claims reported and claims incurred but not yet reported(IBNR) may be analysed as follows: 2007 2006 Insurance Reinsurance Net Insurance Reinsurance Net contracts assets contracts assets US$'000 US$'000 US$'000 US$'000 US$'000 US$'000At 1 January 69,525 (21,059) 48,466 57,081 (33,672) 23,409 Change inSyndicateparticipation 14,001 (1,978) 12,023 (747) 72 (675)Movement onclaimsincurred 84,252 (5,383) 78,869 52,360 (20,208) 32,152Claims paidduring theyear (49,947) 19,157 (30,790) (41,311) 34,975 (6,336)Othermovements * - (6,703) (6,703) - (1,696) (1,696)Foreignexchangeadjustments 1,562 92 1,654 2,142 (530) 1,612 ------- ------- ------ ------- ------- ------At 31 December 119,393 (15,874) 103,519 69,525 (21,059) 48,466 ------- ------- ------ ------- ------- ------ * Other movements relate to third party share of the corporate membertransferred to creditors arising out of reinsurance operations. The provision for unearned premium may be analysed as follows: 2007 2006 Insurance Reinsurance Net Insurance Reinsurance Net contracts assets contracts assets US$'000 US$'000 US$'000 US$'000 US$'000 US$'000At 1 January 33,630 (8,249) 25,381 16,919 (4,154) 12,765Premiumswritten inthe year 242,857 (46,543) 196,314 115,619 (26,680) 88,939Premiumsearned inthe year (202,882) 41,336 (161,546) (99,622) 32,537 (67,085)Other movements * - (905) (905) - (9,759) (9,759)Foreign exchange adjustments 2 92 94 714 (193) 521 -------- -------- ------- ------- -------- -------At 31 December 73,607 (14,269) 59,338 33,630 (8,249) 25,381 -------- -------- ------- ------- -------- ------- * Other movements relate to third party share of the corporate membertransferred to creditors arising out of reinsurance operations. Change in assumptions The Group did not change its assumptions for the insurance contracts disclosedin this note during the year. 21. Trade and Other payables 2007 2006 US$'000 US$'000 Arising out of direct insurance operations 10,213 6,506Arising out of reinsurance operations 19,287 16,916Other Syndicate creditors 3,232 2,830Other creditors 2,983 4,197Accruals and deferred income 8,739 8,071 --------- --------- 44,454 38,520 --------- --------- The carrying amount disclosed above represent reasonable approximate fair valuesat the year end. 22. Principal Exchange rates The exchange rates used in translating foreign currency amounts in thepreparation of these accounts are: 2007 2006 Average rate Year end rate Average rate Year end rate US$ US$ US$ US$£1 sterling isequivalent to 2.00 1.99 1.84 1.96Euro 1 isequivalent to 1.37 1.46 1.25 1.32Can$ 1 isequivalent to 0.93 1.02 0.88 0.86 23. Cash generated from operations 2007 2006 US$'000 US$'000Profit before taxation 59,476 22,589Adjustments for non cash items- Depreciation of tangible assets 79 69- Realised and unrealised gains and losses (1,627) (461)- Charge in relation to financing 791 1,104- Foreign exchange adjustments (1,438) (423)- Charge in relation to share option awards 3,125 2,158Changes in operating assets and liabilities- (Increase) in deferred acquisition costs (9,015) (3,882)- (Increase) in reinsurance assets (55,748) (19,176)- (Increase) in insurance receivables (2,865) (782)- (Increase) in prepayments and accrued income (19,088) (1,032)- (Increase) in other debtors (396) (3,504)- Increase in insurance payables 89,845 33,623- Increase in trade and other payables 5,422 17,116 --------- ---------Cash generated from operations 68,561 47,399 --------- --------- 24. Report and Accounts Copies of the Report and Accounts will be available from the Company's registered office at Clarendon House, Church Street, Hamilton HM11, Bermuda, andon the Company's web-site (www.omegauw.com). This information is provided by RNS The company news service from the London Stock Exchange
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Orascom Inv Information
- This share is currently suspended. It was suspended at a price of 0.014
Share Price Information for Orascom Inv (OIH)
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| Date | Source | Headline | |
|---|---|---|---|
| 1st May 2024 | 9:56 am | RNS | OIH OGM Invitation Notice of Change |
| 30th Apr 2024 | 8:46 am | RNS | OIH OGM Invitation |
| 29th Apr 2024 | 7:00 am | RNS | OIH BOD Summary |
| 18th Dec 2023 | 7:00 am | RNS | OIH BOD Summary |
| 27th Nov 2023 | 7:00 am | RNS | OIH BOD Summary |
| 15th Nov 2023 | 9:40 am | RNS | OIH BOD Summary |
| 2nd Oct 2023 | 10:25 am | RNS | OIH Press Release |
| 21st Sep 2023 | 8:09 am | RNS | OIH BOD Summary |
| 31st Aug 2023 | 11:39 am | RNS | OIH BOD Summary |
| 15th Aug 2023 | 8:29 am | RNS | OIH BOD Summary |
| 19th Jun 2023 | 7:30 am | RNS | Suspension - Orascom Investment Holding S.A.E. |
| 15th Jun 2023 | 9:17 am | RNS | OIH BOD Summary |
| 1st Jun 2023 | 9:45 am | RNS | OIH BOD Summary |
| 31st May 2023 | 9:47 am | RNS | OIH BOD Summary |
| 16th May 2023 | 8:05 am | RNS | OIH BOD Summaries |
| 16th May 2023 | 8:04 am | RNS | OIH OGM Summaries |
| 9th May 2023 | 7:00 am | RNS | OIH Announces a Partnership with BluEV |
| 2nd May 2023 | 12:06 pm | RNS | IFRS Dec 2020 including audit report |
| 2nd May 2023 | 7:00 am | RNS | OGM Postponement Notice |
| 27th Apr 2023 | 9:29 am | RNS | OIH IFRS December 2020 |
| 27th Apr 2023 | 9:27 am | RNS | OIH BOD Summary |
| 12th Apr 2023 | 1:07 pm | RNS | OIH OGM Invitation |
| 4th Apr 2023 | 9:44 am | RNS | OIH BOD Minutes Summaries |
| 5th Dec 2022 | 8:20 am | RNS | OIH's BOD Summary |
| 21st Nov 2022 | 4:41 pm | RNS | Second Price Monitoring Extn |
| 21st Nov 2022 | 4:35 pm | RNS | Price Monitoring Extension |
| 16th Nov 2022 | 9:42 am | RNS | OIH BOD Summary |
| 26th Oct 2022 | 9:33 am | RNS | OIH Press Release |
| 26th Oct 2022 | 8:58 am | RNS | OIH Press Release |
| 26th Oct 2022 | 8:54 am | RNS | OIH BOD Summaries |
| 18th Oct 2022 | 10:47 am | RNS | OIH BOD Summaries |
| 16th Jun 2022 | 9:15 am | RNS | OIH Board Meeting Summary |
| 9th May 2022 | 9:46 am | RNS | OIH OGM Summary |
| 31st Mar 2022 | 9:45 am | RNS | OIH OGM Invitation |
| 31st Mar 2022 | 9:37 am | RNS | OIH Board Meeting Summary |
| 25th Feb 2022 | 4:41 pm | RNS | Second Price Monitoring Extn |
| 25th Feb 2022 | 4:36 pm | RNS | Price Monitoring Extension |
| 21st Feb 2022 | 4:40 pm | RNS | Second Price Monitoring Extn |
| 21st Feb 2022 | 4:35 pm | RNS | Price Monitoring Extension |
| 15th Nov 2021 | 8:20 am | RNS | OIH BOD Minutes Summary |
| 11th Oct 2021 | 7:29 am | RNS | OIH Press Release |
| 13th Sep 2021 | 9:34 am | RNS | OIH BOD Summary |
| 7th Jul 2021 | 9:17 am | RNS | OIH BOD Summary |
| 5th Jul 2021 | 9:30 am | RNS | OIH's OGM Summary |
| 16th Jun 2021 | 10:06 am | RNS | OIH Press Release |
| 1st Jun 2021 | 10:12 am | RNS | OIH's OGM Invitation |
| 1st Jun 2021 | 7:00 am | RNS | OIH BOD Summary |
| 28th Apr 2021 | 9:32 am | RNS | OIH BOD Summary |
| 16th Feb 2021 | 12:23 pm | RNS | OIH's Announcement |
| 11th Feb 2021 | 7:30 am | RNS | Suspension Orascom Investment Holding S.A.E |
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