DOHA: All the five insurance companies listed on Qatar Exchange have posted a strong growth rate in 2011. The premium of these companies has grown to QR4bn. The net profits exceeded QR8bn, Al Sharq reported. The insurance premium in the sector has grown at a CAGR (compound annual growth rate) of 16.5 percent in the last five years and is expected to reach $4.46bn by 2015 growing at a CAGR of 29.5 percent.
The insurance market is expected to achieve a CAGR (compound annual growth rate) profit of 30 percent till year 2014. The country's high economic growth and the launch of mega projects spurred the growth rate in the insurance sector. The multi-billion development projects lined up for the coming years would accelerate the insurance sector growth in 2012, the daily quoted market analysts as saying. The year 2012 will witness a great jump in the premium. This is due to the launch of multi-billion riyal projects, planned as part of the 2022 world cup event and the Qatar National Vision 2030.
In its recent report on Qatar's insurance sector, Alpen Capital said a combination of factors, including the country's huge infrastructure spending, high per capita gross domestic product and a growing economically active urban population were contributing to Qatar's insurance sector growth rate. It said the Qatar insurance industry is expected to register the highest growth among the GCC countries at a staggering 30 percent.
Of the $4.46bn premium, life insurance segment is expected to contribute $124.76mn and non-life at $4.33bn. Within the life segment, penetration is expected to be 0.05 percent with a density of $60.33; while within non-life, it is estimated to be 1.85% and $2,095.94 respectively.
By 2013, the total premium in the Qatar insurance market would have been $2.68bn with life segment's share at $100.03mn and non-life at $2.58bn.
© The Peninsula 2012
