Wednesday 22 November 2017

QIC ... steady and systematic expansion

QIC Group records 14pc growth in premiums

DOHA, July 26, 2017

Qatar Insurance Company (QIC), a leading insurer in Qatar and the Middle East North Africa (Mena) region, recorded a growth of 14 per cent in gross written premiums (GWP) to QR6.24 billion ($1.71 billion) in the six months ended June 30, 2017.

Against the backdrop of a politically driven investment and ultra-soft underwriting environment, QIC group’s net profit amounted to QR505 million for the first six months of 2017, compared with QR602 million for the same period of the previous year, the company said.

The financial results were announced following a meeting of the board of directors yesterday (July 25), presided over by Sheikh Khalid bin Mohammed bin Ali Al-Thani, chairman and managing director.

The performance reflects QIC Group’s steady and systematic expansion across its global and regional target markets, lines of business and client segments, it said.

QIC Group’s international operations, namely its global reinsurance subsidiary Qatar Re (based in Bermuda), London-based specialty insurer Antares and Malta-based subsidiary QIC Europe Limited (QEL) were instrumental in growing the group’s volume of business.

During the first half of 2017, these subsidiaries contributed 89 per cent to the group’s combined premium growth. As at June 30, 2017, Qatar Re, Antares and QEL accounted for 71 per cent of QIC Group’s total premium volume, up from a 69 per cent share a year ago.

In its domestic market, Q Life and Medical Insurance Company (QLM) contributed significantly to the group’s performance, growing its premium income to QR694 million (up 17 per cent) for the first six months of 2017.

Premium income from the countries involved in the political standoff with Qatar does not represent a material portion of the group’s revenues, it said.

QIC Group’s net underwriting result came in at QR263 million for the first half of 2017 (vs. QR438 million in H1 2016). The half-year performance was materially affected by the UK Government’s decision to drastically cut the Ogden Discount Rate, which shook up the UK motor insurance market, with an expected industry-wide reserving hit of over $10 billion. QIC Group has a major underwriting footprint in the UK and decided to strengthen its motor reserves by $31 million, the group said.

In addition, the first half performance was impacted by a few large risk losses in the group’s international operations, it added.

Despite continued global financial market volatility and regional diplomatic and economic turbulence, QIC Group generated robust investment income of QR563 million in the first six months of 2017 compared with QR480 million in the same period last year. The annualised return on investment amounted to 5.7 per cent for the first half of 2017, which is significantly in excess of the global industry average, it said.

QIC Group’s investment exposure to the countries involved in a diplomatic rift with Qatar is minimal, it said.

Khalifa Abdulla Turki Al Subaey, group president & CEO of QIC Group, said: “The financial results for the first half of 2017 clearly demonstrate the effectiveness of QIC Group’s diversification strategy which is predicated on tapping into global growth opportunities whilst maintaining our leading position in our home markets. With minimal exposure in the countries involved in a diplomatic rift with Qatar, it is business as usual for us.”

Offering a conservative outlook for the remainder of 2017, Al Subaey continued: “In line with our business objectives, we will continue to adapt to the changing environment and renew our focus on a bottom line driven and sustainable growth strategy for QIC Group.” – TradeArabia News Service

Tags: Qatar | Insurance |

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