DOHA: The Qatar Insurance Company (QIC) shareholders’ decision to approve an increase in the company’s capital by 32 percent to QR2.4bn ($669m) is credit positive for QIC. The decision will strengthen the company’s capitalisation and gross underwriting leverage, Moody’s Investors Service said yesterday.
Premiums at QIC, Qatar’s largest insurer, rose by almost 50 percent in 2015 and grew at a compound annual growth rate (CAGR) of 54 percent between 2013 and 2015 as a result of expanding into new markets and making acquisitions. That compares with a CAGR of just over 7 percent in aggregate for thenext five largest Qatari insurance groups.
To support QIC’s growth while ensuring compliance with internal and regulatory solvency targets, QIC shareholders approved plans to issue bonus shares in the amount of one share for every 10 held and for a rights issue closing on 1 March of one share for every five shares at a price of QR50 per share.
“We estimate that the bonus and rights issue will increase shareholders’ equity by 26 percent to QR7.6bn from QR6.0bn. On a Moody’s-adjusted basis, we estimate that this increase will improve QIC’s capital adequacy by raising its shareholders’ equity as a percent of total assets by 4.5 percentage points to 27.4 percent and improve gross underwriting leverage to 2.2x from 2.8x as of year-end 2015.”, Moody’s noted.The Peninsula
DOHA: The Qatar Insurance Company (QIC) shareholders’ decision to approve an increase in the company’s capital by 32 percent to QR2.4bn ($669m) is credit positive for QIC. The decision will strengthen the company’s capitalisation and gross underwriting leverage, Moody’s Investors Service said yesterday.
Premiums at QIC, Qatar’s largest insurer, rose by almost 50 percent in 2015 and grew at a compound annual growth rate (CAGR) of 54 percent between 2013 and 2015 as a result of expanding into new markets and making acquisitions. That compares with a CAGR of just over 7 percent in aggregate for thenext five largest Qatari insurance groups.
To support QIC’s growth while ensuring compliance with internal and regulatory solvency targets, QIC shareholders approved plans to issue bonus shares in the amount of one share for every 10 held and for a rights issue closing on 1 March of one share for every five shares at a price of QR50 per share.
“We estimate that the bonus and rights issue will increase shareholders’ equity by 26 percent to QR7.6bn from QR6.0bn. On a Moody’s-adjusted basis, we estimate that this increase will improve QIC’s capital adequacy by raising its shareholders’ equity as a percent of total assets by 4.5 percentage points to 27.4 percent and improve gross underwriting leverage to 2.2x from 2.8x as of year-end 2015.”, Moody’s noted.The Peninsula
