(The Group's Comment) Qatar Insurance Net Profit Rises 54% to QR646
Million in 2018
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Profit: The Company’s profits, excluding
minority interests, amounted to QR645.94 million in 2018,
compared to QR417.59 million in 2017, up by 55%. Earnings per
share reached QR1.78 in 2018, compared to QR1.12 in 2017, while
the comprehensive net income for 2018 amounted to QR289.9
million, compared to QR226.7 million in the previous year. The
2018 statement of comprehensive income showed losses of about
QR376.7 million due to differences in the fair value evaluation
of its investments, and losses of QR17.6 million due to foreign
currency exchange differences.
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Operating
Profit (surplus insurance): The Company’s
profits from insurance activity amounted to QR576.31 million in
2018, compared to QR114.96 million in 2017. This improvement in
profits is the result of the increase in the net earned premiums
(written premiums – reinsurers share) by about 27% between the
years 2017 and 2018. As for the total income, it amounted to QR
1,423.1 million in 2018, versus QR 1,085.4 million in 2017, an
increase of 31.1%.
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Shareholders'
Equity: The shareholders' equity of the
parent company dropped by 3.64% between 2018 and 2017 to QR291.5
million. This decrease was due to the fall of the fair value
reserve by QR221.4 million, and a decrease of foreign currency
reserves by QR30.2 million.
The return on equity of the Parent Company for the year 2018
amounted to 8.36%, versus 5.28% in 2017.
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Dividends: The Board of Directors recommended to
the General Assembly the distribution of 15% (3.93% dividend
yield) of the nominal value of share capital as cash dividends
for 2018, similar to last year’s dividend.
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The stock is
currently traded at a PE multiple of 21.33 times, and a book
value multiple of 1.58 times.
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