Beema net profit surges 25.3% to QR52.9m for nine months

Doha, Qatar: Damaan Islamic Insurance Company. (“Beema” or the “Company”), one of the leading Islamic insurance providers in the State of Qatar, announced yesterday its financial results for the nine-months period ended 30 September 2023.

Sheikh Jassim bin Hamad bin Jassim J Al Thani Chairman of Board of Director’s said: Beema continues to demonstrate its financial resilience, delivering robust growth in shareholders’ net profit of 25.3%, which stood at QR52.9m for the nine months ended 30 September 2023. This is mainly due to increased Wakala and Mudareb fees, coupled with higher investment income. Shareholders’ Earnings Per Share (“EPS”) increased from QR0.21 as of Q3 2022 to QR0.26 as of Q3 2023, demonstrating Beema’s growth and delivery of value to its shareholders.

These strong results were achieved despite general market challenges, which led to a decline of 5.3% in Gross Writen Premiums during the first nine months of 2023. However, Beema’s Motor Insurance Contributions increased by 7.8% YoY as of Q3 2023, attributable to new customer acquisitions through car dealerships and increased commissions.

The Company reported a strong Net Investment Income of QR22.9m during the first nine months of 2023, marking a growth of 38.1% compared to QR16.6m for the same period in 2022. This growth is attributable to reduced leverage and reinvestment in higher-yielding securities, as well as additional profits from Money Market placements by Beema.

During Q3 2023, Beema commenced underwriting on a facultative basis across the GCC in selective lines of business. This strategic move represents Beema’s commitment to diversification and capitalising on growth opportunities.

Policyholders’ equity witnessed a notable increase from QR103m as of Q3 2022 to QR128m in Q3 2023. Simultaneously, shareholders’ equity increased from QR445m to QR484mduring the same period. The Company continued to manage its financial risks effectively, highlighted by a Combined Ratio of 79.2% as of Q3 2023, compared to 73.0% for the same period in 2022 which was primarily due to an increase in gross claims paid during the first nine months of 2023.

In line with prudent financial management, Beema significantly reduced its Policyholders’ and Shareholders’ total Murabaha financing liabilities from QR204m in Q3 2022 to QR 24m in Q3 2023, emphasising its commitment to financial resilience and the delivery of long-term value for its stakeholders.

Beema maintains a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) with a stable outlook assigned to these ratings in April 2023 by AM Best, a global credit rating agency specializing in the insurance industry. According to AM Best, the ratings reflect Beema’s balance sheet strength, as well as its strong operating performance and robust enterprise risk management.

Commenting on the Q3 2023 financial results, Nasser Al Misnad, Beema’s Chief Executive Officer said: “The results achieved during the third quarter of 2023 affirm Beema’s capacity to navigate a complex market landscape effectively. The quarter saw an expansion in our underwriting services outside Qatar and robust growth in key financial metrics. These achievements underscore our commitment to delivering value to our shareholders and reinforce our leading position in the Islamic insurance”