(MENAFN- The Peninsula) The gross written premium (GWP) of Qatar's five listed insurance companies stood at $1.4bn last year. The density of insurance sector in Qatar increased to $686 in 2013 from $599 in the previous year, indicating an increasing coverage.
The Qatar Central Bank (QCB) in its latest 'Financial Stability Review' noted Qatar's insurance sector is developing faster keeping in pace with the growth of the economy. The central bank restricts its analysis to the 5 listed insurance companies operating in Qatar. These companies are primarily involved in the non-life segments such as property, casualty, marine, engineering, motor and medical insurance.
According to the QCB, the performance of one of the five companies helped the sector's overall profit to reach to an overwhelming level of QR3.1bn in 2013. Marginal decline in net claim and increase in investment income, supported by manifold increase in net premium, helped the sector register the remarkable profit level in 2013. Extraordinary profit helped the sector to witness a comfortable ROE in 2013. The increase in net premium and marginal decline in net claim made the sector more resilient.
The total gross premium of the five companies amounted to QR5.1bn in 2013, which accounted for roughly 0.7 percent of 2013 GDP. The combined assets reached QR21.9bn in 2013 from QR16bn registered a year ago. All the five companies, except one, registered increase in total assets. Substantial increase was also recorded in the equity capital of the insurance sector which could meet around 53 percent of the total fund requirement.
The global recovery also helped building the confidence of the insurance sector in Qatar. As a result, in 2013, the investment portfolio of the sector registered a significant increase. The investments in securities increased by QR1.8bn in 2013 as compared to QR193m registered a year ago. However, the share of security investment portfolio in total assets remained almost same owing to equivalent increase in quantum of total assets.
Substantial increase in gross premium and marginal increase in total claim helped the sector to maintain a strong liquidity position in 2013 as compared to 2012. The share of other investments increased due to substantial increase in property investments by the companies.
The combined GWP in life and non-life segments in GCC amounted to $16.3bn in 2012, having grown at a CAGR of 11.8 percent, though this amount accounted for only 0.4 percent of the world GWP. UAE and Saudi Arabia dominated the regional market, representing 80 percent of the total GWP of GCC. Qatar represents the third largest insurance market in GCC.
There are nine insurance companies operating in Qatar, out of which five are national companies and the rest are agencies or branches of Arab or foreign companies. Besides, there are approximately 26 insurance companies providing insurance services, licensed and regulated by Qatar Financial Centre Regulatory Authority (QFCRA).
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