Qatar Insurance Company (QIC) has posted a net profit of QR532.8mn in 2009 compared with QR510.8mn in 2008.
For the first time, the gross premium earned by Gulf’s largest insurer by market capitalisation, surpassed QR2bn and reached QR2.15bn in 2009.
Announcing QIC’s full year results here yesterday, group president & CEO Khalifa Abdullah al- Subaey said the company has seen consistent growth in its insurance business, with premium growing by more than 80% in the last three years.
He said QIC’s net insurance income (after reinsurance and claims) for 2009 grew by 29% to QR394.8mn. Of this, QR164.5mn was contributed by QIC International operations.
The company earned QR345.9mn from investments last year. But investment income came under some “pressure” due to the continuing global economic turmoil, the effects of which were felt in the GCC region in 2009.
Earning per share (EPS) was QR7.17 in 2009 compared with QR6.87 in 2008.
“Due to effective and prudent risk management the company was able to weather the storm and produce a healthy realisation on the investment portfolio,” he said.
QIC’s board of directors, which met here yesterday, decided to recommend a cash dividend of QR5 a share for 2009.
The board meeting presided over by QIC chairman and managing director Sheikh Khalid bin Mohamed bin Ali al-Thani also decided to set up a “special insurance reserve” of QR100mn, which would be kept growing every year.
The reserve has been created to safeguard the company from the adverse impacts of global economic turmoil.
“Even with the current global economic crisis and its contagion impact on the region, 2009 was a stable year for QIC. As a premium insurer not only in Qatar but also in the Gulf region, QIC has capitalised on the economic growth of Qatar and other GCC countries,” he said.
QIC management said it is ‘positive’ about the ‘future outlook’ of its insurance operations. With the formation of Q-Re at the Qatar Financial Centre, QIC will be able to broaden its business base to wider Middle East, North Africa and South Asia (Menasa) region.
The company management expects that over the next few years Q-Re would contribute significantly to the growth of the company as also increase its ability to diversify both in terms of products and geographical coverage.
QIC is also ‘positive’ on the recently formed joint venture, Daman, which began operations. QIC has established its offices and also staffed it with extremely talented professionals to drive the company forward.
During the year, QIC, based on its strong balance sheet and management team, was able to retain its Standard & Poor’s rating of ‘A’ stable, which is the ‘highest’ for any insurer in the region.
QIC said it is also strengthening its internal audit and compliance functions across the group. As part of adopting global best practices in corporate governance and compliance, QIC has established ‘extensive internal regulations’ that are being implemented across the group.
“Advanced software solutions and extensive IT developments besides the addition of experienced professionals in internal audit and compliance functions of the group will ensure that the growth is properly controlled and managed,” QIC said.
As part of its corporate social responsibility QIC has contributed 2.5% of profits generated within Qatar to a social fund that will support various community activities in culture, sports and education.
Details |
