Qatar Insurance 2023: Despite Lower Insurance Revenues, Strategic Cost Reduction, and Discontinued Operations Propel Net Profit
• The company's insurance revenue decreased by 8% year over year.
• Qatar Insurance shares experienced an increase of a spectacular 35% during 2023.
• In 2023, net profit rebounded from a loss in 2022, driven by successful cost reduction measures and improved performance of discontinued operations.
In 2023, Qatar Insurance's stock demonstrated robust growth, starting the year at 1.92 riyals per share and closing at 2.59 riyals per share by year-end, marking a notable 35% increase. Moreover, insiders showed significant interest in the company's performance, collectively purchasing shares worth 74.7 million QAR during the same period.
Despite a notable 8% decrease in insurance revenues, the transition of insurance service results from negative in 2022 to positive in 2023 marks a significant improvement. This positive change was driven by reduced expenses related to insurance services and reinsurance contracts.
The company also experienced significant improvements in the investments and other income contributors segment, contributing positively to a net profit of 164 million QAR. This demonstrates a well-balanced portfolio of the company’s business activities. Moreover, activities outside the core insurance business also made substantial contributions to the overall profit.
he Group has formally announced its decision to sell its wholly-owned Gibraltar-based subsidiaries, West Bay Insurance Pie and Markerstudy Insurance Co. Ltd. The decision, approved by the board executive committee on October 17, 2022, and subsequently confirmed by the board of directors on October 26, 2022, marks a strategic shift in the Group's business direction.
A sale and purchase agreement have been successfully negotiated with an institutional buyer, pending final approval from regulatory authorities. This transaction has led to the reclassification of these subsidiaries as a disposal group held for sale and as a discontinued operation.
These Gibraltar-based subsidiaries primarily focus on underwriting UK motor insurance. Despite the decision to sell, the performance of this business unit has shown improvement compared to 2022. This positive trend has resulted in a notable positive impact on the profit, amounting to 544 million QAR, as reflected under the discontinued operations section in the income statement.
For more comprehensive information, please refer to the reliable financial information source, http://sahmik.com.