timmint mi - qatar insurance weekly report (issue 2014-20)

QATAR INSURANCE

Weekly Report

Issue – 2014 Week 20

09 to 15 May, 2014

TIMMINT Market Intelligence Qatar Insurance Weekly Report 09 to15 May, 2014

2

From:

TIMMINT Market

Intelligence

To: Whom it may concern

Subject:

Weekly Status Report,

Qatar Insurance Industry.

Issue Year 2014, Week 20

Report Sections Page

QATAR Insurance

News 2

Qatar Exchange

Insurance Index 4

Market Performance 5

Companies

Performance 6

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Disclaimer:

This report was prepared as an

account of work sponsored by the

Company. Certain information has

been obtained from published

sources and is given as of the dates

specified. All the information in this

publication is verified to the best of

the authors’ and publisher’s ability,

but neither the company nor the

Management Team makes any

warranty, express or implied, or

assumes any legal liability or

responsibility for the accuracy

completeness or the results of such

use of the information. All such

information is subject to change

without notice.

QATAR INSURANCE NEWS

MIDEAST STOCKS-Insurance deal lifts Qatar to record

high; most markets gain

Qatar Insurance Company lifted the Gulf state's stock market to an all-time high on Tuesday

after winning a large contract to provide services to the nation's new main international

airport.

Most other markets in the region also advanced. Dubai led gains as it recovered from a sharp

drop earlier this week.

Shares in Qatar Insurance Co raised their daily limit of 10 percent

after Qatar Civil Aviation Authority said the company would provide

insurance services for the newly opened Hamad International Airport

for a value of 45.97 billion riyals ($12.63 billion).

The stock was the main support for the Doha benchmark, which climbed 0.8 percent to a new

all-time closing high of 13,175 points, breaking through resistance at the 2005 intra-day peak

of 13,069 points.

Most Doha-listed stocks rose ahead Index compiler MSCI's Wednesday announcement on

which companies from Qatar and the United Arab Emirates it will add to its emerging market

index.

Source: Reuters

Moody’s assigns positive outlook to QIIC

Moody's Investors Service, has today affirmed the Baa2 insurance financial strength rating

(IFSR) of the Qatar Islamic Insurance Company (QIIC). The rating outlook was changed to

positive from stable based on the company's continued strong performance.

Qatar Islamic Insurance Company (QIIC) was created in 1995. Operating exclusively in the

State of Qatar, QIIC provides both life and non-life insurance to individuals and businesses in

Qatar with gross contributions of QAR 212 million in 2013 ($58 million) and total assets of

QAR 741 million ($203 million), and operates as the 6th largest insurer in the Qatari insurance

market (2nd largest in Takaful only).

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Moody's said that its positive outlook for QIIC's rating reflects:

The company's improving and extremely strong capitalisation in relation

to insurance risk (with the 2013 consolidated equity increasing by QAR 40

million to QAR 450 million since 2011 and maintaining a

Gross Underwriting Leverage of 0.7x) and

Its sustained strong profitability at both the underwriting level (relative to

peers in the Middle East) and the bottom line (with a Moody's basis 5 year

average Return on Capital of 16.8 per cent and a five year average

Combined Ratio of 68.9 per cent as of 2013).

Nonetheless, Moody's added that QIIC maintains a significant, albeit reducing level, of

investment risk, as QIIC invests predominantly in Qatari equity and property markets

(translating to the 2013 high risk assets, Moody's basis, being equal to 95.2 per cent of

consolidated equity compared to 100.8 per cent as at 2011), and that its insurance risk

remains relatively concentrated to Qatar and to motor insurance (46 per cent of contributions

in 2013, down from 59 per cent as at 2011), both of which may constrain the company's

ratings over time.

Moody's said that it expects to resolve the positive outlook for QIIC in the next six to 12

months. A rating upgrade could occur if

a) Moody's believes that the recent improvements in capitalisation and

profitability are likely to be sustained, or

b) QIIC undertakes a meaningful reduction in investment risk, either through

wider asset classes or geographic exposure, or c) through sustained

profitable growth and international expansion into markets of similar

standing, thus reducing concentration risks.

On the other hand, the rating may be affirmed with a stable outlook if

a) Moody's expects either capitalisation or profitability to weaken from

recent improving trends, or

b) QIIC undertakes significant further investments into the property or

equity market, which would increase asset risk and (in the case of property)

weaken the liquidity position of QIIC, or

c) Any significant increase in financial leverage -- although Moody's does

not currently expect this to happen.

Source: CPI Financial


4

Qatar eyes deposit insurance as part of financial reforms

Qatar regulators will establish a deposit insurance framework that will include a sharia-

compliant scheme, one of several reforms aimed at modernising the financial sector of the

world's top exporter of liquefied natural gas.

While government support for domestic banks is considered implicit in many cash-rich Gulf

countries, explicit deposit insurance is rare in the region but would help bring Qatar in line

with best practices in other high-income jurisdictions. The scheme would initially be set up

under central bank law, a safety net that would promote financial stability, said the strategy

plan published in the Qatar Central Bank (QCB) website.

The plan also calls for developing a sharia-compliant equivalent to deposit insurance, an even-

greater rarity, deemed necessary by regulators as Islamic banks now hold over a third of total

banking assets in Qatar.

Under an Islamic version, any expenses and investments made by the scheme must comply with

religious principles such as a ban on interest and pure monetary speculation. Bahrain pioneered

Islamic deposit insurance in 1993, with others including Kuwait, Jordan and Malaysia also having

developed schemes of their own.

Source: Arabianbusiness

QIC chosen sole ‘insurance bond carrier’ for HIA

Qatar Civil Aviation Authority has announced that Qatar Insurance Company (QIC) has been

appointed as an “insurance bond carrier” for the Hamad International Airport. The state-of-

the-art, world-class airport facility is fully insured for a value of QR45.97bn.

A local contract tender process was carried out in abidance with ISO-9000 standards. A total

of six companies in Qatar were involved in the contract bid, for which one Qatari company

was named as the chosen tenderer.

QIC will be the sole insurance provider of the HIA, the Civil Aviation Authority said.

Qatar Civil Aviation Authority chairman Abdul Aziz al-Noami said, “Hamad International

Airport provides the aviation industry with a new gateway to the world, equipped with the

latest technological advancements, modern facilities and efficiency-led designs.

The HIA started the first phase of its operations on April 30 with some 10 airlines. Five more

airlines will move their operations to the HIA by May 15.

National carrier Qatar Airways and the remaining airlines operating to Doha will begin flying

from the new airport from May 27, Qatar Civil Aviation Authority said.

Source: Gulf-Times


5

QATAR EXCHANGE INSURANCE INDEX

Insurance Sector Performance:

The chart for Qatar Insurance Index illustrates the global performance of all Qatar insurance companies in the stock market for a period of one year, showing a year to date change of (41.29%).

Insurance Index - Year to Date Figures

Index as of 31 Dec Current Index YTD Change Indicator % Change

2,336.10 3,300.58 964.48

41.29%

Insurance Index vs. QE Index (One Year)

--- QE All Share index --- Insurance All Share Index


6

MARKET PERFORMANCE

The tables hereunder reflect the performance of the listed insurance companies during the week:

Companies Symbol High Price Low Price Closing Price Last Week

Closing

Price Change

Value %

Qat. Insurance QATI 81.4 71.1 77.2 75.5 1.70 2.25

Doha Insurance DOHI 25.3 24.7 25.2 25.0 0.15 0.6

General Insurance QGRI 44.8 41.1 44.3 44.0 0.30 0.68

Al-Khaleej Insurance AKHI 39.5 37.5 38.6 38.0 0.60 1.58

Islamic Insurance QISI 74.0 70.5 71.0 72.0 (1.00) -1.39

Financial Indicators

Symbol Dividend Yield

(%) P/BV Ratio

P/E Ratio

EPS (QR)

BV/Share (QR)

Stock Price (QR)

QATI 2.5 2.4 16.0 4.9 32.3 78.7

DOHI 4.1 2.3 18.1 1.4 11.1 25.1

QGRI 2.8 0.6 1.4 30.8 69.6 44.3

AKHI 1.7 1.3 11.4 3.3 29.5 38.0

QISI 5.2 4.1 14.0 5.1 17.3 71.5

2.81 1.65 6.01 9.91 36.18

The chart below shows the positioning of the insurance

sector among the other sectors in Qatar Exchange Market -

by value

The chart below shows the positioning of the insurance

sector among the other sectors in Qatar Exchange Market -

by volume

Banks & Financial Services

32%

Consumer Goods & Services

13% Industrials

21%

Insurance 3%

Real Estate 15%

Telecoms 9%

Transportation 7%

Banks & Financial Services

25%

Consumer Goods & Services

8%

Industrials 15% Insurance

3%

Real Estate 23%

Telecoms 16%

Transportation

10%


7

COMPANIES PERFORMANCE

QEM Insurance Charts:

There are presently 5 listed insurance companies onto the Qatar Exchange Market. The charts below show their evolution in price and volume for a period of one year.

Qatar Insurance

* One year data

Symbol Last Price 52 Weeks High 52 Weeks Low

QATI 78.7 82.5 57

Doha Insurance

* One year data

General Insurance

v * One year data


QGRI 44.3 60.7 38.5

Al-Kaleej Takaful

* One year data


DOHI 25.05 32.9 22.4


AKHI 38.05 48 31


8

Islamic Insurance

* One year data


QISI 71.5 84 52.5


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