Qatar General Insurance & Reinsurance Company Q.P.S.C. (QGRI) Q4 FY2025 Earnings Call Transcript & Summary

Hello, and welcome to Qatar General Insurance & Reinsurance Company. Please note that this call is being recorded. [Operator Instructions] I'd like to hand the call over now to our moderator, Dana Al Sowaidi. Please go ahead.

Good afternoon.

Hello, everyone, and [Foreign Language] to you all. This is Dana Al Sowaidi from QNB Financial Services. I would like to welcome everyone to Qatar General Insurance & Reinsurance Company's Fourth Quarter 2025 Financial Results Conference Call. On this call from management, we have Omar Alsabbah, Group CFO; Greggy Bueno, Group Head of Finance; and Kabir Ali, Investor Relations Officer. We will conduct this conference call with the management first reviewing the company's results followed by a Q&A session. I will now turn the call over to Kabir. Please go ahead.

Thank you. Good afternoon, ladies and gentlemen. Welcome to the earnings conference call of Qatar General Insurance & Reinsurance Company, which will be referred to as QGIRCO or the company going further for the year ended on 31st December 2025. I am Kabir Sher Ali, QGIRCO's Investor Relations Officer. We will start our investor call with a disclaimer. Thereafter, we will provide you with a summary of our operational and financial results. I will now read out the disclaimer to this conference call. This call may contain, constitute or imply information or forward-looking statements regarding the operational or financial performance and future of QGIRCO or any of its subsidiaries. Such statements are based on the current expectations and assumptions of QGIRCO's management to their best knowledge and diligent assessment. As such, QGIRCO, its director and its officer shall not be liable for any costs or losses resulting from using forward-looking statements throughout this call. I am delighted to give the floor to my colleague, Mr. Greggy Bueno, who will discuss the company's financial results and operational updates.

Thank you, Kabir. We are pleased to report that Qatar General Insurance & Reinsurance Company delivered a strong turnaround in 2025, demonstrating the effectiveness of the strategic actions implemented over the year. The group achieved a net profit of QAR 123.6 million in 2025, representing a substantial increase from the net profit of QAR 30.4 million in 2024. This result reflects the positive impact of the efficiency enhancements that were implemented by the management across the group. The insurance service result increased to QAR 50.8 million compared to QAR 35.2 million in 2024. This improvement reflects the strategic portfolio review that is focused on quality underwriting and profitable growth to ensure long-term sustainability. Investment and other operating results reached QAR 167.1 million, an increase of QAR 15 million year-on-year. The increase was driven by higher rental income, net realized gains and other income, partially offset by lower dividend income. Cost optimization continued to deliver tangible results. Operating and administrative expenses declined by 27% to QAR 59.3 million. Finance costs were reduced by 31% to QAR 53.6 million, primarily due to the continued deleveraging of the Al Rayan Bank facility and improved financing conditions. This has strengthened our balance sheet and enhanced financial flexibility. As a result, net profit attributable to the shareholders reached QAR 124.4 million, translating to earnings per share of QAR 0.142 for the year ended 31 December 2025. QGIRCO maintains a strong financial position with total assets exceeding QAR 5.6 billion and shareholders' equity above QAR 3.7 billion. With that, I will now hand it over to Mr. Kabir, who will take you through the outlook.

Thank you, Greggy. According to the World Bank's Gulf Economic Update in December 2025, Qatar's real GDP is projected to grow by 5.3% in 2026 and by 6.8% in 2027, driven by the expansion of gas production capacity and continued growth in non-hydrocarbon sector. Let us first discuss QGIRCO Insurance business. QGIRCO management remains optimistic that the insurance sector will continue to grow, supported by Qatar's ongoing economic diversification into non-hydrocarbon sectors, increased infrastructure development, digital transformation and the expansion of hydrocarbon capacity. QGIRCO is positioned to expand its product offering and tailor its services to meet the need of a diversifying economy, including innovative insurance solutions in emerging areas such as cyber insurance and renewable energy. Secondly, regarding QGIRCO investment and real estate business, we expect to maintain our income from our real estate portfolios driven by the rental agreement for General Tower with a government entity with a potential increase in income from our other rental properties. On the investment side, the Qatar Stock Exchange has shown positive performance, reflecting the resilience of the Qatar economy, driven by macroeconomic factors such as the LNG expansion, the QSE is expected to continue improving in valuation, dividend returns and sector diversification. Finally, let us highlight the effects of QGIRCO income statement and balance sheet. From an income statement perspective, financing costs are expected to decrease substantially, reflecting the recent rate cuts and the ongoing deleveraging of Al Rayan Bank facility. The group continues to pursue its deleveraging strategy through the sale of non-income-generating assets, which is expected to strengthen liquidity and improve leverage ratios. With this being said, it is worth noting that the outlook has now been fully presented, and the fact sheet will be available on the Investor Relations section of our website by the end of the month. Please feel free to reach out to us through the contact details provided in the Investor Relations section. Ladies and gentlemen, on behalf of the entire QGIRCO team, thank you very much. We wish you a great day ahead. And if you have any questions, please feel free to ask now.

[Operator Instructions] Since there are no questions received at this time, I would like to turn the call back over to Dana Al Sowaidi. Please go ahead.

If there are no questions, we would like to thank the company's management for the results update, and we look forward to speaking to you all for the first quarter results.

Thank you so much. Thank you so much. Have a nice day.

Thank you, everyone, and that concludes today's call. You may now all disconnect. Have a nice day ahead.