DOHA: The shareholders of Qatar Insurance Group approved the board of directors’ recommendation to increase the company’s capital to QR2.43bn from QR1.84bn.
The annual general meeting of the Group also given nod to the recommended distribution of cash dividend pay out of 25 percent for the year ending December 31, 2015 and an issue of bonus shares in the amount of 1 share for every 10 held.
Despite sluggish economic growth and falling commodity prices, Qatar Insurance Group recorded 49 percent year-on-year growth in Gross Written Premium (GWP) to QR8.34bn for the full-year 2015. Net Insurance revenue for the year increased by 39 percent to QR926m.
The annual general meeting held yesterday was chaired by Abdulla bin Khalifa Al Attiya, Deputy Chairman of the Board of Directors. The progress in the Group’s business placed additional demand on the requirement of capital to support strategic growth in the business. In order to facilitate further growth and increase sustainability, the shareholders approved the recommended issuance of shares as rights to its existing shareholders at the closing date on Tuesday March 1, 2016, of oneshare for every five shares held at a price of QR50 per share. The Group has continued to apply global standards and best practices in its assessment of the current and future solvency and capital adequacy requirements to ensure it remains well positioned and capitalised as it pursues its strategic goals of expansion in the years to come.
QIC’s audited consolidated financial statements for the year ended December 31, 2015 highlight record GWP. Key drivers of growth included reinsurance premiums, generated through QIC’s dedicated global reinsurance subsidiary, Qatar Re, which grew at a rate of 116 percent, now accounting for 50 percent of the group’s total premium income.
QIC Group’s consolidated net profit for the full year 2015 came in at QR1.06bn, compared to QR1.02bn for the same period last year. This result reflects regional economic and investment headwinds due to lower oil prices and continued softening of global reinsurance and specialty insurance markets.
Against the backdrop of growing regional and global financial market volatility, the group’s net investment result came in at QR712m. This was partially offset by a very strong net underwriting result of QR926m, a significant increase of 39 percent on the previous year. QIC’s overall profitability also benefited from the Group’s continued cost discipline.
Return on Equity for the reporting period came in at 18.1 percent, against 18.4 percent in the previous year. This result compares favorably with both QIC’s regional peers as well as diversified international insurance and reinsurance groups. At December 31, QIC Group’s shareholders’ equity stood at QR5.99bn, up by 1 percent from QR5.92bn at the end of 2014.
Referring to the Group’s financial performance in 2015, Group President and CEO Khalifa Abdulla Turki Al Subaey said: “2015 has been a watershed year for the global economy which was confronted with multiple challenges that caused substantial disruptions across both developed and developing economies. With top line improvement, continued cost rationalisation and our strategy to respond and adapt to the changing market and economic dynamics through innovation, diversification and by capitalising on market synergies, we have recorded growth of 49 percent in GWP y-o-y in the face of significant macroeconomic headwinds.
The year 2016 is likely to be a challenging year as the world adjusts to dipping oil prices, increasing interest rates and slower rates of growth from China. However, our outlook remains cautiously positive on the prospects of growth in the emerging markets. By offering innovative solutions and quality services, we will continue to maximize value for shareholders, trusted business partners and customers while supporting development of the sector and the economy.”The Peninsula
