By Pratap John/Chief Business Reporter
After seeing gross premium exceeding QR500mn for the first time, Doha Insurance has its eyes firmly set on acquiring a bigger slice of business in the local and international market.
“Big contracts are in the pipeline. We are very hopeful that things will kick in the second half of this year on the engineering side, especially with QRail and all the other major projects infrastructure projects are gearing up,” Doha Insurance CEO Bassam Hussein said.
“It is exciting time; all around Doha, we see major construction activities. Nonetheless, these pose big challenges for the local insurance market. At Doha Insurance, we have the right technical know-how to deal with these locally. And if required, we will share it (as usual) with the international market,” he said in an interview with Gulf Times in Doha.
For major works such as tunnel digging and excavation, highly specialised underwriters are required, Hussein said.
“Usually, there are a few underwriters worldwide specialised on such works. You have to acquire special underwriters to apprise and give you the proper rates. Finding the right underwriter is very important,” the Doha Insurance CEO said.
The investment avenue, which was always bringing in big returns, was non-existent anymore, Hussein said.
“Worldwide, interest rates are falling. On top of that is currency devaluation in many nations, including emerging countries. This has forced investors to take provisions though they may not have sold their investments in such countries. Investors find their investments (in such countries) not worth as much as it used to be a few years ago. So, it has been a tough year on the investment side,” he said.
Doha Insurance would keep investing in Qatar since the local economy was doing very well, he said.
“In Qatar, the stock market is doing so well … and the real estate is doing even better. We are finding it increasingly difficult to argue against people who say invest only in Qatar. This is actually where we have made our money and keep making money, although common sense on the investment side says one needs to diversify,” Hussein said.
Doha Insurance, he said, has benefited from a “promising economy” and is hopeful of doing well in future. Qatar economy is rapidly expanding and the government has committed to help local companies develop.
The company’s investment in Yemen is also bringing “reasonable returns,” Hussein said.
On Qatar Exchange-listed Doha Insurance’s proposed capital increase through a rights issue, Hussein said, “The proposed capital increase was aimed at boosting our credit ranking and the solvency margin. This should lead to increasing Doha Insurance’s competitive ability which, in turn, will qualify it to secure major insurance projects in the local, regional and international markets.”
The insurance company has received ‘in-principle’ approval from the Qatar Central Bank and the Ministry of Business and Trade to issue 24.26mn new shares at QR18 a piece.
The rights issue proposal will now be put forward to the consideration of Doha Insurance’s extraordinary general assembly to be held here on February 17, Hussein said.
‘Takaful unit ready for major lift-off’
Doha Insurance’s takaful division is ready for a “major lift-off”, said CEO Bassam Hussein. In a few weeks, it will have a separate office with dedicated staff, he said.
“We are keen to see a five to six-fold growth in premium income for the takaful division in the near future. At takaful, we will definitely focus on personal lines, anything on a small to medium scale,” Hussein said.
Hussein in an interview with Gulf Times. Picture: Jayan Orma
