QIC wins shareholders' nod for $760m capital boost

20/02/2017 07:45 AST

Qatar Insurance Company, a leading insurer in the Gulf region, said it has won approval from the shareholders to increase its capital from QR2.41 billion ($661 million) to QR2.77 billion ($760 million).

The company announced this after its annual general meeting held yesterday at the Four Seasons Hotel under the chairmanship of Abdulla bin Khalifa Al Attiya, the deputy chairman of the board of directors.

Despite sluggish economic growth and fluctuating commodity prices, Qatar Insurance Group recorded strong operational performance, coupled with a robust premium growth, taking gross written premium (GWP) to QR9.9 billion, up 19 per cent over the same period in 2015.

The group's consolidated net profit for the full year 2016 came in at QR1.03 billion. This result reflects regional economic and investment headwinds due to lower oil prices and continued softening of global reinsurance and specialty insurance markets, said the Qatari firm.

On the back of prevailing global market volatility, the group's net investment income came in at QR925 million. This result can be attributed to QIC's prudent principle of managing the Group's investment portfolio and pursuing an effective cost discipline, it added.

The shareholders discussed the group's annual performance and also gave approval for capital hike besides endorsing the recommended distribution of cash dividend payout of 15 per cent for the year ending December 31, 2016 and an issue of bonus shares in the amount of 3 shares for every 20 held.

Key contributors to the reported growth were the Group's dedicated global reinsurance and specialty insurance subsidiaries as well as the life and medical segments of the business emanating from the Middle East.

The international subsidiaries in Bermuda, London and Malta grew at a rate of 18 per cent and now account for approximately 70 per cent of the Group's total GWP.

QIC Group generated a healthy return on equity (RoE) of 14.7 per cent for the reporting period. At December 311, 2016, QIC Group's shareholders' equity stood at QR8.2 billion, up by 42 per cent from QR 5.8 billion at the end of 2015.

On the performance, QIC group president and CEO Khalifa Abdulla Turki Al Subaey said: "Despite global repercussion, which has massively influenced major sectors in the region, QIC Group has witnessed strong business momentum and has performed in line with our expectations."

"The overall performance in 2016 highlights the group's well thought out strategy and its successful execution. For 2017 our outlook remains cautiously positive," stated Al Subaey.

"We shall focus on consolidation and enhance our operational efficiency. With renewed focus on achieving bottom line driven growth, we will continue to maximize value for shareholders, our trusted business partners and customers while supporting development of the sector and the economy," he added.

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