26/07/2017 06:25 AST
Qatar Insurance Company (QIC), the leading insurer in Qatar and the Middle East North Africa (MENA) region, recorded a growth of 14 percent in gross written premiums (GWP) to QR 6.24bn for the first six months of 2017 (H1, 17), compared to the same period in 2016.
Despite a politically driven investment and ultra-soft underwriting environment, QIC Group’s net profit amounted to QR505m for H1, 17, from QR602m recorded a year ago.
The Group announced the first half results following a meeting of the Board of Directors, presided over by Sheikh Khalid bin Mohammed bin Ali Al Thani, Chairman and Managing Director, yesterday.
The solid first half result reflects QIC Group’s steady and systematic expansion across its global and regional target markets, lines of business and client segments. 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 percent to the Group’s combined premium growth. As at 30 June 2017, Qatar Re, Antares and QEL accounted for 71 percent of QIC Group’s total premium volume, up from a 69 percent 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 QR694m (up 17 percent) 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.
QIC Group’s net underwriting result came in at QR263m for the first half of 2017 (vs. QR438m 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 $10bn.
QIC Group has a major underwriting footprint in the UK and decided to strengthen its motor reserves by $31m. In addition, first half performance was impacted by a few large risk losses in the Group’s international operations.
QIC Group generated robust investment income of QR563m in the first six months of 2017 compared with QR480m in the same period last year. The annualised return on investment amounted to 5.7 percent for the first half of 2017, which is significantly in excess of the global industry average.
QIC Group’s investment exposure to the countries involved in a diplomatic rift with Qatar is minimal.
Khalifa Abdulla Turki Al Subaey (pictured), Group President & CEO of QIC Group commented, “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.”
“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”, Al Subaey added.
The Peninsula
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