THE BOARD OF DIRECTOR’S REPORT22 March 2017
Peace and blessings of Allah be upon you
I am delighted to present our Annual Report for the year ended 31 December 2016. This report provides an overview of the Group’s companies performance and achievements throughout the year and their plans for the future.
The Company performance
While international and local markets were affected by the prevailing conditions of oil prices, which consequently had its impact on the insurance industry which, similar to the other industries, was affected with these conditions, our long history in the region and strong capital base ensured that we fared well. I am happy to report a good result across the companies of the Group. We achieved a net profit of QR 258 million for the year ended 31 December 2016. We managed to achieve a 42% growth in our net profit from previous year after excluding the revaluation gains of investment properties.
We proudly retained our strong hold and outstanding position in the insurance market with a gross written premium of QR 838 million (including Takaful business) at year end, (2015: QR 859 million), which is a great achievement considering the highly unstable economic conditions.
Our investment performance also achieved a positive outcome with the Group achieving an investment income of QR 264 million for the year ended 31 December 2016 after excluding the revaluation gains of investment properties (2015: QR 231 million). The total assets for the Group increased to QR 9.6 billion as at 31 December 2016 compared to QR 9.4 billion as at 31 December 2015 primarily resulting from spending on the current projects and investment property revaluation.
As of 31 December 2016, our total equity stood at QR 6.4 billion an increase of 2% from previous year. This increase establishes that our strategy on the management of our real estate portfolio is continuing to earn revenues and increasing our total liquidity. We are maintaining our focus towards converting our non-income-producing land into income producing holdings.
The Board of Directors propose a cash dividend of (QR 1.50) per share and to approve the balance sheet and profit and loss account for the financial year ended 31/12/2016.
It is noteworthy that our financial strength and capital ratings remain strong with A.M. Best affirming our Financial Strength Rating of “A-” (Excellent) and the Long-Term Issuer Credit Rating of “a-”. The ratings reflect the Company’s strong risk-adjusted capitalisation, enhanced risk management capabilities and track record of solid operating performance.
Welcoming international experts to Qatar
Towards the end of 2016, Qatar General Insurance & Reinsurance Company had the honor of hosting the annual IMIA Conference and of being the first and only Arab country to host such an event. This esteemed event, bringing leaders and experts together, is held in high regard by the international engineering community.
Investing in people and innovation
People are what drives our business forward. Our “NextGen” Programme equips graduates and young professionals with the specialist skills in the insurance industry. We have great confidence in the high calibre of participants and their future within the Group.
Our commitment to developing and mentoring Qatari talent has remained a key objective, with Qatarization forming an integral part of our overall strategy as we progress a greater number of qualified Qatari’s into management level positions across the Group.
For our customers, we invested widely in smart technology that will enable us to provide a much faster and cost efficient services, by helping us to speed up claims procedures, internal communication, and making our services available via mobile technology, ensuring that we meet the needs of customers and remain operationally efficient.
Maintaining strong governance
The sound governance framework adopted by QGIRCO supports our Group in the strategic decisions it makes for long-term growth. There were no changes to our Board of Directors or members of our Executive Management Committee, Audit Committee, Risk Committee or Nomination and Remuneration Committee during the year.
I am extremely grateful to all the members of the Board and aforementioned committees for all their hard work and dedication to the Group. You can read through the full version of our corporate governance report on our website.
The Company carries out its transactions with the related parties through the approved Related Party Translation Policy Manual. This policy is based on the transparency and full disclosure principles with regard to all such transactions and partnerships with the related parties such as Al Sari Trading Company, Trust International Group of Companies, and Falcon Readymix Company to achieve the best interest for the Company.
In light of our future vision of the Company’s businesses, our main objective is to expand in the insurance areas, focus on the future real estate projects currently executed by the Company, enhance the Company’s capabilities and increase the financial efficiency in compliance with international standards and criteria, and hence maintain the Company’s leading position in the insurance and real estate investment industries in Qatar bearing in mind the strength of the Qatari economy, which is one of the fastest growing economies.
All the appreciation and gratitude to those who stand behind our successes
In conclusion, on behalf of the Board of Directors, I would like to convey our sincere appreciation and thanks to His Highness The Emir Sheikh Tamim Bin Hamad Bin Khalifa Al Thani, for his unstinting leadership and support extended to our national companies and their dedicated efforts to advance our nation into a supreme economic landmark. Our thanks also go to His Excellency Prime Minister and Interior Minister Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani, His Excellency Minister of Finance Mr. Ali Sherif Al Emadi, His Excellency Minister of Economy and Commerce Sheikh Ahmed Bin Jassim Bin Mohammed Al Thani, and His Excellency Governor of Qatar Central Bank Sheikh Abdulla Bin Saud Al Thani for their continued support to our Group and to the industry as a whole.
I would also like to express our unwavering gratitude to our Shareholders and to our loyal customers for their support and big confidence in us. We also record our appreciation in particular to the Company’s employees and senior management for all their efforts and dedication for the Company’s progress and prosperity.
May Allah grant us success,,
Nasser Bin Ali Bin Saud Al Thani
Chairman and Managing Director