(MENAFN - The Peninsula) Qatar General Insurance and Reinsurance Company (QGIRCO) enjoys tremendous expertise in underwriting in the engineering sector. Most of the key personnel working in the underwriting department have skills and knowledge to underwrite this risky business.
The company undertakes various risky construction projects, plant erections, construction equipment and damage or loss to contract works, says an analytical report on the company released by Kuwait-based Global Investment House.
The company is an established player in the general insurance segment catering pre-dominantly to markets in Qatar and the Gulf region.
The company has been insuring clients like Qatar Petroleum, Maersk Oil Qatar, Qatar Gas, Total E&P Qatar, Qatar Petrochemical and Qatar Fertilizer etc. The company offers insurance and risk management solutions to both onshore and offshore risks. It covers operational insurance, construction insurance and third-party liability insurance.
QGIRCO's property insurance products are designed to provide the widest possible protection to all the fixed assets like buildings and contents, machinery and stock against unfortunate events like fire or natural perils. The company offers personal line of insurance covering home protection, personal protection division and motor insurance.
Qatar General Insurance and Reinsurance Company has reported two-year (2006-2008) growth of nine percent, 31 percent and 94 percent in Gross Written Premiums (GWP), Net underwriting revenue and net income respectively.
QGIRCO has reported a fall in reinsurance ratio in 2008 as compared to 2007 due to decline in GWP. The decline was mainly due to increase in retention capacities for the year 2007-2008 and de-growth due to recession factors in energy and engineering portfolios.
Claims have increased sharply from QR148.1m in 2006 to QR251.5m in 2008, while the engineering, fire and general accident segments have witnessed a rise in reinsurance in 2008 as compared to 2007. Claims as a percentage to net worth have increased from 12 percent in 2006 to 17 percent in 2008. The ratio has increased due to decrease in net worth coupled with absolute increase in claims in 2008.
The company has sold most of its risky equity investments and booked profit on available sale portfolio by the end of last quarter of 2008. Despite the financial crisis, the investments made by the company were down but not to the extent the global markets collapsed.
QGIRCO reported a decline of 29 percent and 55 percent in Gross Written Premiums and net income, respectively in the first half (H1) of 2009 as compared to H1 of last year. So at current value its stocks are a good buy, Global said.