By Sahan Bidappa
Qatar General Insurance and Reinsurance Company (QGIRC) will not only strengthen its core businesses on exponentially growing demand for risk cover, especially for large infrastructure projects, but also focus more on real estate projects.
“Our main objective is to expand in the insurance areas, focus on the real estate projects currently executed by the company, enhance the capabilities and increase the financial efficiency in compliance with international standards and criteria,” QGIRC chairman and managing director Sheikh Nasser bin Ali bin Saud al-Thani told shareholders at the annual general assembly meeting yesterday.
While international and local markets were affected by the prevailing conditions of oil prices, which consequently had its impact on the insurance industry, QGRIC managed to achieve a 42% jump in net profit from previous year after excluding the revaluation gains of investment properties, he highlighted.
QGIRC - whose coverage ratio of the available economic capital stood at 294% as on December 31, 2016 - reported a net profit of QR258mn on gross written premium of QR838mn (including takaful business) in 2016.
Highlighting that its total equity grew 2% year-on-year to QR6.4bn in 2016, Sheikh Nasser said this increase reinforces its strategy on the management of real estate portfolio, which continues to earn revenues and increase total liquidity.
“We are maintaining our focus towards converting our non-income-producing land into income producing holdings,” he said, adding the aim is to maintain the leading position in the insurance and real estate investment industries in the country, considering that Qatar is one of the fastest growing economies in the world.
Its group company General Real Estate Company has seen a stable year in 2016 with projects continuing to meet their targets.
QGIRC group chief executive Ghazi Abu Nahl said the slowdown in infrastructure expansion is expected to ease by the end of this year. “We are likely to see an increased demand for insurance on large infrastructure projects,” he added.
Qatar General Holding, which owns most of the group’s subsidiaries and manages the group’s treasury and investment portfolio, said its “cautious” outlook on investments would remain this year as it seeks to achieve reasonable returns, while maintaining an appropriate level of diversification.
“We approach 2017 with cautious optimism as infrastructure spending is set to pick up and the turbulent conditions we have experienced throughout last year are expected to ease,” Abdallah Barrage, Qatar General Holding deputy chief executive said.
About realty projects, Ragheb Jalabi, general manager of General Real Estate Company, said a more realistic and competitive pricing strategies of its suppliers and contractors enabled it to “significantly” lower the construction costs of its projects, which include Lusail Fox Hills, Lusail Waterfront and Mozoon Towers.
“These cost savings enabled us to realign capital towards new projects and further the development of Oriental Enterprises (acquired in 2015),” he said.
Remaining positive on Qatar’s development path, Oriental Enterprises general manager Adib El Choufani said, “The recent securement of notable medium and large size real estate projects will enable us to bolster our standing within the market place, and put us in a strong position to win further work in Qatar’s rapidly growing market.”
© Gulf Times 2017
