Beema reports QR52.9mn net profit in January-September 2023

Increased Wakala and Mudareb fees as well as higher investment income led Damaan Islamic Insurance Company (Beema) report a 25.3% year-on-year increase in net profit to QR52.9mn in the first nine months (9M) of 2023.
"Earnings-per-share (EPS) increased to QR0.26 at the end of 9M ended September this year compared to QR0.21 the year-ago period, demonstrating the insurance company's growth and delivery of value to its shareholders," said Beema chairman Sheikh Jassim bin Hamad J al-Thani.
These strong results were achieved despite general market challenges, which led to a decline of 5.3% in gross written premiums during 9M-2023. However, Beema’s motor insurance contributions increased 7.8% on an annualised basis as of third quarter (Q3) 2023, attributable to new customer acquisitions through car dealerships and increased commissions.
The company reported a strong net investment income of QR22.9mn during January-September 2023, marking a growth of 38.1% year-on-year, due to reduced leverage and reinvestment in higher-yielding securities, as well as additional profits from money market placements by Beema.
During Q3-2023, Beema commenced underwriting on a facultative basis across the Gulf Cooperation Council region in selective lines of business. This strategic move represents Beema’s commitment to diversification and capitalising on growth opportunities.
"The results achieved during Q3-2023 affirm Beema's capacity to navigate a complex market landscape effectively. The quarter saw an expansion in our underwriting services outside Qatar and robust growth in key financial metrics. These achievements underscore our commitment to delivering value to our shareholders and reinforce our leading position in the Islamic insurance," said Nasser al-Misnad, Beema’s chief executive officer.
The policyholders' equity witnessed a notable increase from QR103mn as of Q3-2022 to QR128mn in Q3-2023. Simultaneously, shareholders' equity increased from QR445mn to QR484mn during the same period.
The company continued to manage its financial risks effectively, highlighted by a combined ratio of 79.2% at the end of Q3-2023 compared to 73% the same period in 2022, primarily due to an increase in gross claims paid during 9M-2023.
In line with prudent financial management, Beema significantly reduced its policyholders’ and shareholders’ total Murabaha financing liabilities from QR204mn in Q3-2022 to QR24mn in Q3-2023, emphasising its commitment to financial resilience and the delivery of long-term value for its stakeholders.
Beema maintains a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” (Excellent) with a "stable" outlook assigned to these ratings in April 2023 by A M Best, a global credit rating agency specialising in the insurance industry.
The ratings reflect Beema’s balance sheet strength, as well as its strong operating performance and robust enterprise risk management.