S&P Global Ratings (S&P) has revised its outlook on Doha Insurance Group (DIG) to 'Positive' from 'Stable'. At the same time, the global credit rating agency affirmed its 'A-' insurer financial strength and long-term issuer credit ratings for the company.
The outlook revision reflects DIG’s build-up of capital in recent years, on the back of ongoing growth in top and bottom-line results. In 2024, DIG reported an increase in insurance revenues to QAR1.58bn ($434m) from QAR1.3bn in 2023, as the company acquired some large non-life accounts in Qatar.
DIG’s reinsurance subsidiaries, MENA Re and MENA Re Life (both not rated), propelled the group’s growth and diversification by geography and line of business.
Financial performance outlook
DIG’s insurance revenue further increased by about 19% in 1Q2025 compared with the corresponding quarter in 2024. S&P anticipates that DIG’s top line will grow by about 20%-30% in 2025, as the company expands its international and domestic operations, before more moderate growth rates of about 10% in 2026 and 2027.
S&P also forecasts that DIG’s combined ratio will remain between 80% and 85% over the coming two years. This will stem from the company's continued focus on underwriting profitability. DIG achieved a combined ratio of about 81.6% in 2024 compared with 82.7% in 2023, thanks to an improvement in its loss ratio.
Balance sheet
S&P expects DIG’s capital adequacy to remain substantially above the 99.99% benchmark in its model in 2025-2027. This is based on its projection of an annual net profit of more than QAR180m, of which the majority will be retained, over the same period. Thanks to stronger underwriting and investment results, DIG reported an increase in after-tax profit to about QAR190.4m in 2024, compared with about QAR150.7m in 2023. As a result, the shareholders’ equity increased to about QAR1.3bn in 2024 from QAR1.2bn in 2023.
Furthermore, S&P expects DIG will continue to gradually reduce its exposure to high-risk assets, in favour of highly rated fixed-income instruments. Last year, the company de-risked its asset portfolio and reduced its total exposure to real estate and equity investments to about 37%, versus about 44% in 2023.
Lastly, S&P expects DIG's borrowings will decline further, and that the company will lower its finance costs. At end-2024, DIG's borrowings amounted to about QAR33.5m, down from QAR65.9m at the end of 2023.