Qatar Islamic Insurance Group Q.P.S.C. (QISI) Earnings Call Transcript & Summary

Good day, and welcome to the Qatar Islamic Insurance Company Quarter 2 2021 Results Conference Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Mr. Roy Thomas. Please go ahead, sir.

Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to Qatar Islamic Insurance Company's Second Quarter 2021 Financial Results Conference Call. On this call, we have Isam Ayoub, the Chief Financial Officer; Muhamed Ashraf Siddiqui, the Executive Manager for Risk Management; and Walid Ibrahim Abuja, the Investor Relations Officer. We will conduct this conference call with management first reviewing the company's results followed by a Q&A. I will turn the call over now to Walid. Go ahead, Walid.

Thank you very much. Thank you. [Foreign Language]. Ladies and gentlemen, on behalf of the Board of Directors and management of Qatar Islamic Insurance Group, I welcome you all to the Investors conference for the period ended on June 30, 2021. I am Walid Abuja, the Investor Relation Officer, at Qatar Islamic Insurance Group, and I will give you a snapshot of the financial results of QIIG as at end of June 30, 2021. Mr. Isam Ayoub, Group CFO; and Mr. Muhamed Ashraf, Executive Manager, Risk Management, are also joining us here. During the first half 2021, the group booked gross written contribution of QAR 220.4 million in policyholders compared to QAR 216.6 million during first half 2020. The policyholders fund bolstered a surplus of QAR 2.9 million compared to a surplus of QAR 27.9 million during the same period in 2020. However, the net retained surplus has had been in the first half 2021, stood at QAR 161.4 million compared to QAR 130.2 million as at the end of the first half 2020. The shareholder fund total revenue stood at QAR 66.4 million compared to QAR 61 million during the same period in 2020. The shareholders fund posted an income of QAR 40.9 million in first half 2021 compared to QAR 42.4 million compared to 2020. This translates into basic earnings per share of QAR 0.27 for first half 2021 compared to QAR 0.28 for first half 2020. On balance sheet side, the total policyholder equity stood at QAR 168.7 million, whilst total shares equity stood at QAR 387.9 million as at June 30, '21 compared to QAR 182.4 million and QAR 395.9 million as at December 31, 2020, respectively. The combined total assets of policyholders fund and shareholders funds at QAR 1.08 billion as at June 30, 2021. You can download the consolidated financial statement as at June 30, '21 as well as our investor presentation from Investor Relations, which is in our website, www.qiic.com.qa. I thank you all for your kind attention. Now we are open to answer any questions or queries. Thank you very much, sir.

[Operator Instructions] We'll now take our first question over the phone, which comes from Zohaib Pervez from Al Rayan Investments.

Could you talk about the development on the mandatory insurance that was past some time in this year. Has there been any discussion or any go ahead on that front?

Yes, Zohaib. Thank you very much for the question. Yes, there was indeed some announcement by the government towards the first quarter. In the first quarter of this year regarding the mandatory health insurance for the expert for their RP renewal. I think first phase of that is already implemented, that is on ground, which is for the -- anybody having -- over age of 60. All the experts, they must have their medical insurance in order to renew their RP. And that is already on ground. And with the Qatar Islamic Insurance, we are offering this product to our customers. Regarding the overall implementation for other age groups, that is still under review with the ministries. We have been in touch with them but until now, we don't know what -- when will this be implemented overall for all age groups. And but there were some consultations initially with the insurance company than we have given our input, and we are all now waiting for the implementation date to be announced by the ministry.

Okay. So is it possible, I mean there's a number of other insurance companies as you just said it by the end of this year, this might become very real. Is that -- would that be correct?

Come again, Zohaib, I didn't get you.

So by the end of this year, there is expected that these regulations will be passed. Is that also what you are -- is that also your experience? Do you think that will be possible?