Qatar’s insurance companies witnessed a robust growth in net premium, while their net claims declined stupendously in the first quarter (Q1) of 2022, indicating healthy trends in the country’s risk cover sector.
The net premium of Islamic insurance and foreign branches was seen growing faster than total net premium income of the overall insurance industry as well as the conventional peers in the review quarter, according to the Qatar Central Bank (QCB) data.
Total net premium grew 12.87% year-on-year to QR1.27bn in Q1, 2022. The premium from the domestic market was seen expanding 11.67% to QR1.09bn during the review period.
The net (domestic) premium from the conventional insurance companies was up 9.08% to QR819.7mn at the end of March 31, 2022.
The net (domestic) premium from takaful operators grew faster at 20.28% year-on-year to QR272.8mn in January-March 2022.
The net insurance premium of the foreign branches amounted to QR178.5mn, which shot up 20.79% on an annualised basis in the first three months of this year.
The country's massive infrastructure portfolio has been a pillar of strength for the insurance companies as their insurable assets expanded exponentially, reflecting in higher gross written premiums, an analyst said, adding the proposed mandatory health insurance would augur well for the sector in the future.
The insurance companies reported a 30.5% plunge year-on-year to total net claims to QR379.2mn at the end of March 31, 2022.
The total net (domestic) claims was seen declining 21.05% to QR350.5mn in Q1, 2022.
Net claims in the conventional segment registered 23.94% year-on-year contraction to QR273.5mn in January-March 2022.
Net claims in the takaful segment were down 8.77% year-on-year to QR77mn in Q1, 2022.
Net claims of foreign branches plummeted 71.75% to QR28.7mn in January-March 2022.
The Qatar Stock Exchange listed insurance constituents had seen a 12.46% year-on-year jump in net profit to QR387.46mn in Q1, compared to a 432.58% plunge the year-ago period. The sector contributed about 3% of the overall net profits of the listed companies in the review period.
The QCB data said the balance sheet of the insurance firms showed 4.89% year-on-year jump in investments to QR25.74bn at the end of Q1, 2022.
The cash and deposits of the insurance companies were seen expanding 17.79% year-on-year to QR7.15bn in Q1, 2022.
The insurance companies' shareholders equity grew 5.42% on an annualised basis to QR17.5bn with retained earnings registering a sharp 40.84% surge to QR2.72bn and legal reserves by 1.81% to QR5.06bn; even as paid up capital was unchanged at QR5.96bn at the end of Q1, 2022.
The receivables and reinsurance receivables of the insurance companies nevertheless declined 26.64% year-on-year to QR5.12bn at the end of Q1, 2022.
On the liabilities side, the insurance companies' insurance contract liabilities/technical reserves were seen gaining 6.01% year-on-year to QR8.82bn in January-March 2022.
Their insurance/reinsurance payables were down 3.51% year-on-year to QR1.65bn at the end of Q1, 2022.