QIC posts QR301.51mn Q1 profit

26/04/2017 07:44 AST

Qatar Insurance Company (QIC), a leading risk cover provider in Qatar as well as the wider Middle East and North Africa, has posted a net profit of QR301.51mn, translating as earnings-per-share of QR1.09 in the first quarter (Q1) of this year.

On the back of solid expansion across its key geographical markets, lines of business and client segments, QIC Group’s performance and pace of premium growth for Q1 2017 are in line with the company’s expectations, its spokesman said.

The group was successful at delivering a stable performance due to steady flow of income which stemmed from its prudent underwriting and investment prowess. Despite economic downturn and market volatility, QIC recorded a 15% growth year-on-year (y-o-y) in gross written premium (GWP) to QR3.09bn in Q1 2017.

Key contributors to the growth in GWP can be attributed to the group’s global reinsurance and specialty insurance subsidiaries, namely, Qatar Re and Antares in addition to its life and medical insurance subsidiary, QLM.

The group’s international subsidiaries in Bermuda, London and Malta reported a 37% growth and now account for about 69% of its total GWP. “The results for Q1 2017 highlight the group’s sound risk management principles and constant endeavour at exploiting growth opportunities in emerging markets. We will continue to increase our book of business, build on our capabilities and expand our reach in order to introduce innovative products and services in the target markets,” QIC group president and chief executive Khalifa Abdulla Turki al-Subaey said.

Stressing that the group’s outlook for the future remains “cautiously optimistic,” he said in the long term, its goal is to adapt to a rapidly changing environment, seize market opportunity as they arise whilst focusing on maintaining close proximity with its clients.

Despite continued regional and global market turbulence and softening of rates, QIC recorded a “significant” increase in investment and other income which amounted to QR304mn, up 51% y-o-y.

The net underwriting results decreased 35% y-o-y to QR179mn as a result of change in ‘Ogden Discount Rate’ announced by the Ministry of Justice in the UK, which modified the discount rate related to compensation to claimants of long term claims (personal injury) from (2.5%) to (-0.75%).

“This had a significant negative impact on the motor insurance business in UK with expected losses to the insurance market of $7bn. Qatar Re, QIC’s subsidiary, had recognised the impact of this change in Q1 2017 which resulted in decrease in its net underwriting results,” the spokesman said.

The group has renewed its focus on streamlining operations for achieving enhanced operational efficiency with the administrative expense ratio for its core operations at 8.5% at the end of March 31, 2017. QIC Group’s shareholders’ equity stood at QR8.34bn.

Gulf Times