Al Salamu alaikum and a warm welcome to our website.
The Board of Directors of Doha Insurance Company is pleased to present its fourteenth annual report on the Company’s activities and financial status in the fiscal year ended 31/12/2014, as well as Company Future Plan for 2015.
- The Company continued its persistent and relentless efforts in order to maintain its unique position it attained during 2013, and in 2014 it has been able to increase its share in the local market and to maintain continuous profitability and growth through establishment of solid and long-term relationships that made the Company able to keep a balanced insurance portfolio.
Premiums went up from QR 517m in 2013 to QR 534m in 2014, an increase of 3%. The Company’s management expected bigger increase in the premiums in 2014, however, putting forward some mega projects in the State of Qatar, which were expected to be launched in 2014, have been delayed, while the establishment of the National Health Insurance Company has totally taken over the insurance of Qatari citizens had its negative effect, and competition among insurance companies became more intense in terms of premium rates prevailing in the Qatari market.
- The Company has successfully completed the subscription process in the capital increase during the period from 17/03/2014 to 07/04/2014, whereas 24.260.000 new shares have been issued for subscription, to the tune of QR 18 for each share, inclusive of the nominal value of the share plus issue premium. This has enabled the Company to collect QR 436.6 m from issuing the equity shares for the present shareholders. Thus, the Company capital is put now at QR 500 m, and the shareholders, equity is almost doubled.
The company has sought, through increase of the capital, to support and improve the credit rating and enhance its financial portfolio, tobe qualified to increase its competitive edge in obtaining insurance of the Mega projects in the State of Qatar and abroad, which, in turn, would avail it the opportunity to secure a bigger portion of premiums and to improve the returns of technical profits.
- On 14/07/2014, the global rating agency, Standard & Poor’s declared raising the credit rating of Doha Insurance Company to level “A-“, from level “BBB+”, thanks to the improvement in the depth of capital and a favorable future perspective. It is a rating generally being awarded by this global agency upon conducting a thorough and strict inspection of a company’s financial and administrative performance. This matter substantiates the Company’s strong financial position and its ability to fulfill such consequential obligations.
On the other hand, the Global rating agency, A.M. Best, an international company specialized only in rating insurance companies, granted the Company on 26/08/2014 the rate of “A-“ (Excellent) with a stable future perspective, which reflects the strong position of the Company’s risk-adjusted capitalisation
In any cases, such raise in the Company’s credit rating was a culmination of the distinguished financial and capitalisation positions. The staff of the Company proved they have cumulative super expertise that has boosted capabilities of the Company’s technical performance and enabled the Company to gain advanced credit ratings from recognized global rating agencies.
- In achievement of its policy to expand regionally and internationally, the Company has obtained the initial consent from Qatar Central Bank to establish a new company in Dubai International Financial Centre (DIFC), for the purposes of dealing in the business of subscribing in reinsurance, especially in the insurance of properties and engineering projects, as well as liability insurance outside Qatar.
Procedures for registering the new company with DIFC are well underway, in coordination with renowned global attorney and technical advisor offices. The trade name shall be Mena Re Underwriters Ltd (Mena Re). The company is expected to launch its business after completing recruitment of the technical staff, during the first half of 2015.
Following is a summary of the key financial results achieved in 2014 compared to 2013:
(1) Net return of the technical department on the insurance activity amounted to QR 84.9 m, compared to QR 72.2 m in 2013.
(2) The return of investment on local shares, bank interests and other revenues amounted to QR 61.5m, compared to QR 49.9 m in 2013.
(3) The Company achieved a net consolidated profit of QR 77m, including the Company’s Islamic Insurance Branch “Doha Takaful”, compared to QR 67 m in 2013.
(4) Total of the shareholders equity amounted to QR 1,075m, compared to 548 m in 2013.
1) The Company will proceed with its efforts to enter into regional and international business alliances with the view to supply its insurance portfolio and to inject additional premiums to boost continued profit increase and development of the Company.
2) The Company plans to develop a “Risk Management Committee” to determine, monitor and control the major risks that could affect the Company’s business and shall be responsible for taking the appropriate actions to minimize severities; i.e. risks of insurance activity, operation risksand risks of credit and investment.
3) The Management plans to conduct a complete study on the establishment of a legal entity wholly owned by the Company, to assume management of the Company’s investment portfolio and other assets owned by the Company.
Nawaf Nasser Bin Khaled Al-Thani
Chairman of the Board of Directors.