Doha Insurance has reported net profits of QR25.6 m in the first half of 2009

Doha Insurance has reported net profits of QR25.6 m in the first half of 2009, the figure showed a decrease of 29 percent compared to the corresponding period last year.

"The insurance industry in Doha has realised it should keep its profit from insurance activities, not from investments," said Mahmoud Al Naser Assistant General Manager of during a press conference held yesterday announcing the half year financial results of the company.

Al Naser added "we are aware of that now and we see the need to focus once again on the insurance operations for our profits, our decline in profits have been mainly due to the decrease in the local stock market, which is where our investments were" "While our net profits are lower than the same period last year, our performance compared to the rest of the industry is good", said Al Naser "our earnings per share has fallen from QR2.33 to QR1.42, mainly due to a drop in profits".

Despite having lower net profit than that of the same period last year, Doha Insuranc was capable of raising its long term credit rating from BBB to BBB+ by Standard and Poor. "During a time when many corporations are struggling trying to maintain their credit rating, and some even seeing a reduction in their credit ratings, we were capable of raising ours" said Al Naser.

When asked about it outlook for the second half of 2009, Al Naser said "We expect difficulties, but we don't expect losses" adding "we know where we stand".

"We have established a competitive position in the market, and we are fit for the competition" said Al Naser.

Al Naser mentioned that Takaful Insurance, the Islamic insurance arm of Doha Insuranc have seen a very good response by the public, and that it compensates for 10 percent of the company's overall gross premium.

"Despite the difficult market period we now strongly maintain our position as Qatar's third largest insurance company, and we have some major project on" said Al Naser.

By Jaber Al Musallam

© The Peninsula 2009