Doha Insurance is planning to convert its Islamic branch ‘Doha Takaful’ into a full-scale Shariah-principled insurance company as part of its overall restructuring in line with the expansion plans both locally and regionally.
This was announced yesterday by its chairman Sheikh Nawaf bin Khalid al-Thani after the board meeting, which also disclosed the company’s full-year 2016 net profit of QR72mn on net underwriting revenue of QR87mn.
In 2015, the company had reported a higher net profit of QR111mn on lower net underwriting income of QR79mn.
Its investment and other income amounted to QR62mn in 2016 compared to QR116mn (which included QR78mn capital gains from a real estate divestment) in the previous year. The insurer has made a provision of QR32mn for impairment of financial investments in 2016 against QR9.8mn a year ago.
Although the technical profits grew 9%, its consolidated net profit fell 35%, which according to the company, was due to the ongoing turbulence in the international and regional arena.
“The drastic drop in oil prices in 2015 had a negative impact on the financial results of 2016, adding to that the sustained reduction in premiums which reached unprecedented levels,” Sheikh Nawaf said.
However, its Mena Re, which is based in Dubai International Financial Center, has started underwriting in a “positive and constructive” manner with premium written amounting to QR35mn last year. “We expect this to go up to QR50mn in 2017,” he said.
On its proposed full-fledged Islamic insurance company, he confirmed that Doha Insurance is in talks with the Qatar Central Bank regarding the same. “A full feasibility study has been prepared and submitted to the central bank in line with their requirements,” Sheikh Nawaf said.
The Islamic branch (Doha Takaful) reported a surplus amounting to QR770,000 in 2016 against a deficit of QR784,000 in the previous year.
On its future plan, the chairman said the company plans to do a full restructuring in line with its ambitious strategy to expand locally and regionally.
On medical insurance, Sheikh Nawaf said it was looking to work jointly with other local players to form a “solid and formidable” alliance but its involvement would be on the right price for the right cover.
The company’s total shareholders’ equity reached QR1.07bn in 2016 compared to QR1.08bn in the previous year.
Its total assets were valued at QR1.62bn in 2016, comprising cash and cash equivalents of QR516.03mn, financial investments of QR478.39mn, reinsurance contract assets worth QR265.15mn, insurance and other receivables of QR181.15mn and investments of QR157.49mn in properties.
Sheikh Nawaf: Growth plans on track.