Qatar: Doha Insurance to set up full-fledged takaful company
Source: Middle East Insurance Review | Mar 2017
Doha Insurance is planning to convert its Islamic branch, Doha Takaful, into a full-fledged Shariah-compliant insurer as part of its overall restructuring in line with the expansion plans both locally and regionally.
The plan was announced by the company’s Chairman Sheikh Nawaf bin Khalid al-Thani at a board meeting. “A full feasibility study has been prepared and submitted to the central bank in line with its requirements,” he said.
Doha Takaful reported a surplus amounting to QAR770,000 (US$211,469) for 2016 against a deficit of QAR784,000 for the previous year.
Doha Insurance also disclosed that its 2016 full-year net profit stood at QAR72 million, 35% lower than the QAR111 million posted in 2015. The insurer attributed the 35% fall in net profit to ongoing turbulence in the international and regional arena.
Net underwriting revenue amounted to QAR87 million in 2016, higher than the QAR79 million chalked up in 2015.
Investment and other income reached QAR62 million in 2016 compared to 2015’s QAR116 million. The fall is attributed to investment profit generated from the divestment of a real estate investment amounting to QAR78 million in 2015.
Doha Insurance made a provision of QAR32 million for impairment of financial investments in 2016 against QAR9.8 million a year ago.
Its wholly owned reinsurance subsidiary MENA Re, which is based in the DIFC, has started underwriting in a “positive and constructive” manner with premium written amounting to QAR35 million last year. “We expect this to go up to QAR50 million in 2017,” he said.
The company’s total shareholders’ equity reached QAR1.07 billion at the end of 2016 compared to QAR1.08 billion a year ago.
QAR1 = US$0.27