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QLM targets to enhance growth rate in near future

QLM targets to 
enhance growth 
rate in near future

Tribune News Network
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 percent which stood at QR98.05 million as compared to QR 86.87 million in 2019.
The financial results were approved by the board of directors in the meeting chaired by QLM Chairman Sheikh Saud bin Khalid bin Hamad Al Thani. In reference to the point of dividend, the board of directors took into consideration of the general economic conditions, market conditions, expansion and growth plans and all other factors that affect the business.
In addition, the board also considered 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 2021 first-quarter profits and recommended that no dividends shall be declared for distribution for 2020.
As per the dividend policy, Sheikh Saud said, “Any declared profits may be distributed in the form of cash dividends or through capitalisation 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 June 30, 2011, in the form of a limited liability company at Qatar Financial Centre. Thereafter, effective January 1, 2019, through portfolio transfer the business operations of the company were transferred to a new company formed under the jurisdiction of the 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 on the Qatar Stock Exchange on January 13, 2021.
Commenting on the company’s results, Sheikh Saud said, “The company has 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. The company will ensure that it delivers to the expectations of all the stakeholders and creates shareholder value and provide for a good return in the form of dividends to the shareholders in accordance with its dividend declaration and distribution policy.”
The earnings per share for 2020 was QR0.28 as compared to QR0.25 per share in 2019. As stated in the IPO prospectus, QLM 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 a 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 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 into 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 continuously enhancing the technology platforms which are fully integrated such as the mobile app, online portal, WhatsApp and other electronic mediums to reduce the turnaround times and ensure that the insured members have access to the healthcare services at all times.