QIC profit jumps 46% to QR780mn

23/10/2014 05:51 AST

Insurance major QIC Group has posted a nine-month net profit of QR780mn, up 46% on the same period last year.
In 2013, QIC had registered a net profit of QR535mn in nine months up to September.
QIC’s nine-month financial results were released after a meeting of the company’s board of directors presided over by its chairman Sheikh Khalid bin Mohamed bin Ali al-Thani here yesterday.
On nine-month performance, QIC Group president and CEO Khalifa Abdulla Turki al-Subaey said, “Qatar Insurance Group reports strong performance in line with its goals to be ranked among the top global insurers.”
He further stated that achievements made over the first three quarters of 2014 showed that the Group was well on its way towards meeting its goals. One of the most important additions QIC had this year was the acquisition of Antares, which added a further dimension to the Group’s global footprint in the reinsurance arena.
Subscribed premiums for the period from January to September reached QR4.46bn, an increase of 55% year-on-year (y-o-y). These include QR2.65bn of “cumulative reinsurance premiums” accepted through the Group’s reinsurance units -Antares and Qatar Re.
Returns on investment and other revenue were QR806mn, a year-on-year increase of 50% over QR535mn achieved over the same period in 2013.
The board of directors also approved the listing of QIC International (QICI) on the Qatar Stock Exchange. QICI is a subsidiary of QIC incorporated under the Qatar Financial Centre since 2007 with an initial share capital of QR200mn that has gradually increased to its current level of QR382mn.
QICI’s holdings include QIC’s branches in Dubai and Abu Dhabi, as well as an 82% share of Kuwait Qatar Insurance Company (KQIC), a 70% share in Oman Qatar Insurance Company (OQIC), a 40% share in Qatar Re, QIC’s reinsurance subsidiary, in addition to a representative office in Malta.
QICI has management control over all these units.
Total written premiums for QICI as on June 30 were around QR1.74bn in comparison to QR1.31bn in the same period in 2013.
QICI has been rated by the leading credit rating agencies with “A” (stable) Standard & Poor’s and an “A” (excellent) by A. M. Best.
The listing application will be submitted once the approvals of QICI’s board of directors and its General Assembly as well as other relevant authorities are obtained.
Another point discussed during the board meeting was the issuance of convertible bonds, which was previously approved by the board pursuant to the receipt of necessary approvals from the relevant authorities. These bonds were to be offered in global markets to attract foreign capital into the Qatari market.
However, QIC said it had received an offer from the General Retirement and Social Insurance Authority to fully acquire the issuance of the convertible bonds. Therefore, the QIC board of directors accepted the offer as per the terms and conditions to be agreed.
It has also authorised the executive management to obtain necessary permissions from the authorities concerned to convene a General Assembly meeting in order to approve the issuance of the above bonds. QIC’s next General Assembly is to be convened on November 23 at 4pm at the Four Seasons.
The board of directors approved a recommendation to the General Assembly to amend two of the company’s Articles of Association to comply with the law- one related to shareholdings of non-Qatari investors, and the other related to the legal reserve.
QIC said it was “successful in making a strong start” in the 51st year of its operations by expanding its reinsurance business, which currently accounts for approximately 60% of its overall written premiums.
QIC is also at the top of the list of insurance companies in the MENA and has a regional and international footprint that garners recognition from global insurance and reinsurance markets.

Gulf Times