(The Group's Comments) General Insurance Net Profit Falls to QR 20.43 Million in Q1 2019

April 30, 2019

Profits: Qatar General Insurance’s profits declined by 63% to QR 20.4 million by the end of 2019 first quarter, compared to QR55.1 million for the same period of 2018, while the company’s earnings per share amounted to QR 0.23 versus QR 0.63.

Operating Profit (Insurance Subscription Results): Profits from the company's insurance activity amounted to QR 13.18 million for the first quarter of 2019, a decrease of 45% compared to QR 23.8 million. Although the net amount of premiums earned was about QR 33 million, the increase in claims of QR 8.7 million led to a decline in the subscription results.

Investment Profits: General Insurance’s profits from investment activity dropped by 19% to QR70.8 million in the first quarter of this year, compared to QR 87.2 million for the same quarter of 2018. This drop was due to a decrease in rental income and a loss of fair value of QR 5 million in this first quarter, versus a profit of QR 2.3 million for the corresponding quarter of 2018.

Expenditures: amounted to about QR 65.9 million in the first quarter of 2019, an increase of QR6.9 million compared to QR60.7 million in the corresponding period of last year. The cost of construction activities increased by about QR 1.5 million, while administrative expenses dropped by QR 3.31 million. The increase in expenses along with the decrease in revenues led to a 64% decline in profits generated by insurance activities that stood at QR 18.1 million in the first quarter of 2019, compared to profits of QR 50.2 million in the corresponding quarter of 2018.

Comprehensive Income: Qatar General Insurance recorded a profit of QR 6.6 million in the statement of comprehensive income, compared to a loss of QR 3.1 million for the same period of 2018.