(MENAFN - The Peninsula) The Qatar General Insurance & Reinsurance Company (QGIRC) posted a net profit of QR119.4m in 2010 compared to QR136.2m in 2009.
Due to the valuation of its investment properties from cost to market value which necessitated a restatement of the company's financial position, the income was estimated to QR86.1m for 2009 in line with International Financial Reporting Standards (IFRS), the company said in its 31st annual report for the year ended December 31, 2010.
Total insurance premiums have increased to QR518.5m in 2010 compared to QR504.5m in 2009, while net written premiums reached QR100.1m in 2010 compared to QR74.3m in 2009 which shows a growth of 26 percent.
Earnings per share reached QR3.74 in 2010 compared with QR4.26 the previous year as a result of income restatement. Investment income for 2010 rose by 15 percent to QR128.1m compared to QR111.6m in 2009.
The company's Chairman and Managing Director, Sheikh Nasser bin Ali bin Saud Al Thani said the company realised good technical results and managed to expand its corporate and private individual customer base thanks to its distinguished insurance products and high customer service in spite of strong competition in the Qatari market which led to an increase in Gross Written Premiums (GWP) and improved technical profits.
"The company's investment operation remains well diversified within a balanced approach stressing strategic long term investments in sound companies operating in financial services and manufacturing as well as high quality bond issues and direct investments in subsidiary and affiliated companies in the region and strategically located properties it is developing to add to the current construction boom Qatar is witnessing presently," he said.
He added that QGIRC continues to focus on its insurance operations as well as its strategic investments inside Qatar in supporting the national economy. Nevertheless, the company is expanding its core and investment opportunities in the region in order to strengthen its balanced position in the local and regional markets, he said.
The company's investment income for 2010 rose to QR128.1m compared to QR111.6m in 2009 which shows a growth of 15 percent. Total assets increased to QR3.8bn during this period, compared to QR3.4bn (restated) for 2009 where the total assets for the year 2009 before the restatement, which resulted from changing the accounting policy of investment properties from the cost method to the fair value method is QR2.3bn. The equity increased to QR2.4bn compared to QR2.2bn in the year 2009 as the total equity before the restatement is QR1.1bn which shows a growth of 115 percent.
Meanwhile, the Takaful gross written premiums increased to QR78m in 2010 compared with QR54m in 2009. Surplus profit to policy holders increased to QR7.7m in 2010 compared with QR6.4m in 2009 in addition to the increase in profits attributable to shareholders to QR1.3m in 2010 compared with QR893,000 in 2009.
General Takaful total assets rose in 2010 to QR105.7m compared with QR70.64m in 2009, showing a growth of 49 percent.
Based on the above results the Board of Directors recommended the distribution of 15 percent cash dividends (QR1.5 per one share) to the shareholders and 40 percent bonus shares (two shares for every five shares).