In This Article:
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Net Profit: QAR 735 million for the year, up from QAR 615 million.
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Insurance Revenue: QAR 8.6 billion for the year.
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Insurance Services Income: QAR 514 million, a 71% year-on-year growth from QAR 300 million.
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Net Investment and Other Income: QAR 973 million with an investment yield of 5.3%.
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Solvency Ratio: 184% at year-end.
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Gross Written Premium (GWP) in MENA Region: QAR 4.8 billion for 2024.
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Dividend Recommendation: 10% dividend proposed for approval.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Qatar Insurance Company SAQ (DSMD:QATI) reported a net profit of QAR 735 million for the year, up from QAR 615 million the previous year.
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The company achieved a 71% year-on-year growth in insurance services revenue, reaching QAR 514 million.
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The solvency ratio at the end of the year was a robust 184%, indicating strong financial health.
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A 10% dividend has been recommended by the board, reflecting confidence in the company's financial stability.
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Qatar Insurance Company SAQ (DSMD:QATI) successfully restructured its international business, exiting loss-making and high-risk segments, which positions it for greater stability and profitability.
Negative Points
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The global insurance industry faced challenges in 2024, including unprecedented flooding in Dubai and significant losses from US hurricanes.
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Despite improvements, the company had to exit from certain international markets due to low margins and high volatility.
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The restructuring of the international business indicates previous exposure to high-risk segments that needed correction.
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The company faces intense competition in the Qatar market, which could impact future growth and market share.
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There is a reliance on the MENA region for premium growth, which may limit diversification and expose the company to regional economic fluctuations.
Q & A Highlights
Q: Can you elaborate on the performance of the other side of the business? A: Qatar operations have been a pillar for QIC in terms of top line stability. The growth is particularly strong in personal lines such as motor, homecare, and travel, which have improved the bottom line. Despite market competition, QIC maintains its leadership position in Qatar. Company Representative 2
Q: Have there been any modifications on the business side after shareholders emphasized prioritizing stability? A: We have exited low-margin international businesses, shifting focus to regional and Qatar operations, which now constitute 52% of our business. This strategic change aims to balance our portfolio between international and MENA regions, with growth in international markets primarily through Lloyd's of London. Company Representative 2