Doha Insurance H1 profit drops 18% to QR44.49mn

Shrinkages in core income and investment earnings as well as higher expenses led Doha Insurance Company to report an 18% decline in January-June 2015 net profit to QR44.49mn.Gross premiums grew 5% to QR315.09mn, but with reinsurers’ share of gross premium falling marginally, the insurance company has registered 22% growth in net premium to QR88.28mn, according to its financial statement.A more-than-quadrupled change in unexpired risk reserve to QR12.51mn led it to record only a 9% rise in earned insurance premiums to QR75.78mn.Total underwriting income grew 9% to QR93.32mn on the back of QR2mn change in deferred commissions, even as commission received fell 2% to QR15.54mn.However, net underwriting results were down 3% to QR47.04mn as there was a 36% surge in outstanding claims reserve to QR6.82mn and a 31% in commissions paid to QR5.17mn. The company had also incurred QR0.68mn as other technical expenses.Nevertheless, claims paid shrank 42% to QR47.13mn and there was also a 75% plunge in reinsurers’ share of claims to QR13.53mn.Investment and other income declined 20% to QR35.82mn with net gain on sale of financial investment plummeting 74% to QR6.74mn and other income by 6% to QR0.27mn. Dividend income rose 26% to QR21.31mn; interest earnings by 77% to QR3.64mn and share of results of an associate more than doubled to QR0.91mn.Rental income from investment properties was rather flat at QR2.85mn and the insurer had booked unrealised gain on held-for-trading investments to the tune of QR0.1mn against a loss of QR2.14mn in the year-ago period.Salaries and other staff costs soared 24% to QR26.21mn, even as general and administrative costs fell 29% to QR9.32mn; translating into a 4% rise in total expenses to QR37.11mn.Net surplus attributable to takaful branch policyholders tanked 62% to QR1.25mn.Total assets were valued at QR1.63bn, comprising financial investments of QR622.14mn, cash and cash equivalents of QR346.66mn, reinsurance contract assets worth QR290.93mn, investment of QR159.55mn in properties and insurance and other receivables of QR129.68mn.Total equity stood at QR1.08bn on a capital base of QR500mn and earnings-per-share was QR0.89 at the end of first half ended June 30, 2015.