Qatar Insurance Company Board of Directors held its fourth meeting in 2017 on Tuesday evening 13/6/2017 chaired by Sheikh Khalid bin Mohammed bin Ali al-Thani- the Chairman and Managing Director, the board discussed the points on the agenda of the meeting, including a report on the performance of the company and the results of its activities during the period from January to May 2017.
Khalifa Al Subaey, Group CEO, said that the report showed that Qatar Insurance Group continued to successfully pursue its strategic objective of diversity and geographic expansion, such that over 70% of its business today comes from the Group’s international franchise. This diversification of business has been achieved through the group’s subsidiary, Qatar Reinsurance Company Ltd. which is based in Bermuda and licensed by the Bermudian Monetary Authority. Qatar Re has expanded its business globally and has established its offices in the major global reinsurance hubs such as Singapore, Zurich and a representative office in London. . It should be noted that in 2016, Qatar Reinsurance Company was ranked among the top 35 global non-life reinsurers according to the credit rating agency (A.M. Best).
The group also succeeded in diversifying its business through its Lloyds operations, Antares, which is located in one of the world’s most important insurance markets. The syndicate underwrites specialized insurance risks, contributing to the diversity of the group’s business, both geographically and through products. In 2016 the company joined the Lloyd’s China platform in Shanghai, China.
The group also managed to expand its direct insurance activity in the continent of Europe through its subsidiary Qatar Europe Limited (QEL) which is located and registered in Malta.
Khalifa Al Subaey, CEO, mentioned that the strength of the group’s financial position has enabled us to serve our clients globally. The financial strength of the Group has contributed to maintaining its credit rating from S&P “A” Stable and “A” Excellent from A.M. Best.
Khalifa Al Subaey, CEO stressed that the continued growth of the group’s business globally reflected our utmost commitment for creating Shareholders’ value and reflecting our dedication towards implementing the group’s strategic plan successfully in a difficult economic and political environment.
On the other hand, the board was informed about the procedures of adjusting the nominal value of the company’s share from QAR 10 riyals per share to become QAR 1 riyal per share. The board has approved the initiation of such procedures on the meeting held on 25th of April 2017, in order to execute the decision taken by the Extraordinary General Meeting which was held on 21st of February 2017. The Board was informed of the full notification of Qatar Central Bank, Qatar Financial Markets Authority, Qatar Stock Exchange and Qatar Central Securities Depository of the board’s decision in this regard, to determine their requirements.
It should be noted that this direction from the Board of directors comes under the terms of Article 152 of the new Commercial Companies Act No. 11 of 2015, which allows the nominal value of the share to be between QAR 1 riyal and QAR 100 riyal. The Board foresees the positive results of changing the nominal value of the company’s share to QAR one riyal from QAR 10 riyals and the resulting increase in the liquidity of the share in the stock exchange and thus an increase in the stock price and increase shareholders value.
The Board therefore made its recommendation to adjust the nominal value of the company’s shares to one riyal to the extraordinary General Assembly of the company that had agreed to its meeting on 21/2/2017 on this recommendation, and agreed on delegating all the necessary powers to the board to implement that decision in the light of the guidance of the relevant authorities.
When the board found that the prevailing circumstances warranted the implementation of the Assembly’s decision, it agreed to initiate the procedures for the implementation of that decision, and the relevant authorities were notified, and we are still awaiting the directions of the Qatar Financial Markets Authority.