Doha Insurance Q1 net surges 9% on financial investment sale gain

Doha Insurance Company has reported a 9% rise in January-March net profit to QR23.32mn mainly on more-than-doubled net gain on sale of financial investments and lower surplus to takaful policyholders.

Gross premium, otherwise, shrank 4% to QR140.64mn; but reinsurers’ share of gross premium fell faster by 6% to QR108.1mn, leading to a 3% rise in net premiums to QR32.54mn, according to its financial statement.

The insurance company’s earned insurance premiums were marginally down to QR32.15mn as there was a negative movement in “unexpired risk reserve”.

Total underwriting income was down 3% to QR38.39mn with commissions received falling 3% to QR6.12mn and change in deferred commission by 87% to QR0.11mn.

However, net underwriting results improved by 3% to QR18.41mn as the company was able to report a 20% decline in claims paid to QR20.76mn, reinsurers’ share in claims by 46% to QR6.19mn and change in outstanding claims reserve by 38% to QR3.42mn.

A more-than-doubled net gain on sales of financial investments to QR5.63mn, coupled with a 10% increase in dividend income to QR11.53mn and more than six-fold jump in other income to QR0.08mn, helped the insurance company report a 25% expansion in total investment and other income to QR19.35mn.

Total expenses were up 12% to QR14.64mn owing to a 7% rise in salaries and other staff costs to QR8.87mn and 23% in general and administrative costs to QR5.02mn.

Net surplus available to takaful policyholders were seen to shrink 81% to QR0.21mn.

Total assets were valued at QR1.33bn comprising reinsurance contract assets of QR538.46mn, financial investments of QR474.36mn, cash and bank balances of QR128.65mn, insurance and other receivables of QR85.2mn and property and equipment worth QR73.56mn.

Total shareholders’ equity stood at QR552.48mn on a capital base of QR257.4mn and earnings-per-share was QR0.91 at the end March 31, 2014.