(Sukuk.net - The Peninsula) Despite challenging business environment, the Qatar Islamic Insurance Company (QIIC) yesterday announced that it will reimburse 19 percent cash surplus to its policyholders for 2008 backed by robust financials.

The company's chairman told the annual general meeting of the shareholders amidst thunderous applause: "The board has decided to reimburse policyholders cash surplus equaling 19 percent of the premiums written in 2008, the highest so far."

But Abdullah bin Thani Al Thani, who chairs the board of Qatar's lone Islamic insurer, was rueful that the domestic insurance market achieved a modest five percent growth last year.

While the national economy recorded an impressive real gross domestic product (GDP) growth rate of 16 percent in 2008, he said.

Premiums collected last year slightly exceeded QR3bn and the less-than-desired growth of the insurance sector was due to the rapid slowdown in construction and engineering activity in the country as an outfall of the global financial crisis, he said. "Business decision-making was stifled in the last quarter of 2008."

"But I assure all our esteemed shareholders that the financial position of your company and its future prospects are so sound that Moody's have assigned QIIC a financial strength rating of BAA2 with stable outlook," said Al Thani.

Popularly known as Islamic Insurance, the QIIC also assures that a three-year strategic plan (between 2009 and 2011 with lofty and achievable goals) will permit the company to increase its market share in the country's insurance business, Abdullah said.

Based on net profits of QR84.6m (with net policyholders' surplus of QR16.1m), the shareholders' profit reached QR68.5m.

The chairman's proposal to distribute 30 percent cash dividends to the shareholders for 2008 (QR3 per share) was also approved by the AGM.
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