QLM Life & Medical Insurance Company, a leading provider of health and life insurance solutions in Qatar, recently declared its financial results for the financial year 2020. The company recorded an increase in its net profits by 12.8% which stood at QAR 98.05 million as compared to QAR 86.87 million in the previous year 2019.
The financial results were approved by board of directors in the meeting chaired by His Excellency Sheikh Saud bin Khalid bin Hamad Al Thani, Chairman of the board. In reference to the agenda item of dividend, the board of directors, took into consideration the general economic conditions, market conditions, expansion and growth plans and all other factors that affect the business. In addition, the board also considered the clear guidance as provided to the investors in section 10.3 of the IPO prospectus regarding 2020-2021 interim dividend to be declared based on Q1’2021 profits and recommended that no dividends shall be declared for distribution for FY2020. Sheikh Saud bin Khalid bin Hamad Al Thani also mentioned that as per the dividend policy “any declared profits may be distributed in the form of cash dividends or through capitalization of profits, or a combination of both, according to the recommendation of the board of directors and approval in the general meeting, subject to obtaining the required regulatory and other necessary approvals”.
The company was initially incorporated on 30 June 2011 in the form of a limited liability company at Qatar Financial Centre. Thereafter, effective 1st January 2019, through portfolio transfer the business operations of the company were transferred to a new company formed under the jurisdiction of Ministry of Commerce and Industry and regulated by the Qatar Central Bank. Since then the company has been fully compliant with QCB’s regulations and in line with regulatory requirements which requires all insurance companies to be listed at the Qatar Stock Exchange, the company was converted into a Qatari public shareholding company, and its shares were listed at the Qatar Stock Exchange on 13 January 2021.
Commenting on the company’s results, His Excellency Sheikh Saud bin Khalid bin Hamad Al Thani, Chairman of the Board of Directors, stated “The company has a developed a robust and clear long-term strategy to grow the business and has a strong financial position with good liquidity to meet its commitments and to ensure that it delivers to the expectations of all the stakeholders and creates shareholder value and provide for good return in form of dividends to the shareholders in accordance with its dividend declaration and distribution policy”. The Earnings per share for the year 2020 was QAR 0.28 as compared to QAR 0.25 per share in the previous year 2019.
As stated in the IPO prospectus, QLM Life and Health Insurance intends to distribute interim dividends for the period covering January 2021 to March 2021 from its net profit earned for the period and in accordance with the above mentioned dividend policy as set out in the company’s offering prospectus.
As regards the credit rating, the company has been recently affirmed a credit rating of “A” minus with stable outlook by Standard and Poor’s on the basis of its own financial strength and on a stand alone basis.
The company has plans to foray into the retail segment and shall soon be launching individual life and medical insurance products in the market. This will further help to strengthen its market dominant position and enhance the public profile of the company. The company plans has a good retention and highly loyal customer base and plans to capture more market share through targeting some large strategic accounts which currently are not part of the company’s client pool. The company is at the forefront to pitch for any business tenders which are in pipeline to be rolled in the market for these large and medium accounts. In addition the entry in to the retail segment shall provide a sustainable and strong base to maintain its leadership position and improve its topline and strengthen the bottom line.
The company is recognized in the market for its best in class services it provides to its insured members and is continuously enhancing the technology platforms which are fully integrated such as mobile app, online portal, what’s app and other electronic mediums to reduce the turnaround times and ensure that the insured members have access to the healthcare services at all times. On the other hand the company deploys various tech driven processes such as pharmacy benefit management system, online pre approval, business intelligence systems etc. to optmise on the operational efficiencies and to keep the claims costs under control. This helps to further strengthen the bottom line of the company and create value for the shareholder’s.