QIC, FY2019: net profit reached USD 184 million, up 1.1%

3 February 2020 — press.release
Qatar Insurance Company (QIC) closed year 2019 with a net profit of USD 184 million, 1.1% higher than 2018's level (FY2018: USD 182 million).

QIC FY2019 (12 months) figures, y-o-y changes

  • Gross written premiums: USD 3,528 million (+1.9%)
  • Net written premiums: USD 3,049 million (+2.7%)
  • Net underwriting result: USD 98 million (-38.0%)
  • Net investment and other income: USD 298 million (+25.7%)
  • Consolidated net profit: USD 184 million (+1.1%)
  • Non-life combined ratio: 103.3% (+2.0 pp.)
  • Total assets: USD 10,828 million (+0.6%)
  • Net profit: USD 184 million (+1.1%)

In 2019, QIC recorded growth in gross written premiums (GWP) of 2% to USD 3.53 billion compared to USD 3.46 billion for the same period of the previous year. The growth was driven by the successful digitization of QIC's direct insurance business in the MENA region.

QIC Group's MENA operations reported GWP of USD 832 million in 2019 compared to USD 796 million in 2018 and continued to benefit from stronger economic growth and diversification in the region.

QIC's international business posted GWP of USD 2.70 billion in 2019, compared to USD 2.67 billion in 2018. QIC continued to consolidate further its position as a global insurance and reinsurance player with a local presence in 13 geographies across the Middle East, Europe, the Americas and Asia. QIC's international business, namely, Antares, Qatar Re, QIC Europe Limited (QEL) and the Gibraltar based insurers continued the integration of its operations under QIC Global and now account for 76% of the Group's total premium base.

Qatar Re now ranks 26th in A.M. Best's rankings of the World's Top-50 Largest Reinsurance Groups, up from 35th rank in 2016.

The Group's net underwriting result came in at USD 98 million, as compared to USD 158 million in 2018. This reflects the prudent reserve strengthening policy applied across the international business, the impact of increase in reserves for our UK motor business in response to the further revision of the Ogden discount rate by the UK Government, and the impact of natural catastrophe losses experienced in the autumn of 2019 due to Typhoons Faxai and Hagibis that caused landfall in Japan.

The direct business in Qatar and MENA continued to perform strongly, benefiting from enhanced efficiencies through the wider use of digital technologies. Based on the above, QIC reported a non-life combined ratio of 103.3% for 2019 (2018:101.3%).

QIC Group achieved a total investment income of USD 298 million, as compared to USD 237 million in 2018. On a year-to-year basis, the return on investment, excluding one-off gains, came in at 4.4%, compared with 4.3% for 2018.

As part of a smooth transition and succession planning at the executive management level, the Board approved the recommendation of Mr. Khalifa A. Al Subaey, the Group President & CEO and appointed Mr. Salem Khalaf Al Mannai as the Group CEO of Qatar Insurance Group.

Khalifa Abdulla Turki Al Subaey, Group President of QIC Group, commented:

"In 2019, QIC Group was particularly pleased with the strong and profitable premium growth that we enjoyed in our core markets in the MENA region. At the same time the integration of our international business; Qatar Re, Antares, QIC Europe (QEL) and the Gibraltar based insurance companies, is progressing on target. These developments reflect the success of our efforts to refocus our underwriting capacity on risks with a more favorable risk-return ratio, namely, our short-tail, personal lines business. Moreover, in the MENA region, we are spearheading the digitization of our industry, thereby increasing our operational efficiency while strengthening our client relationships."

More financial information about QIC can be found at qatarinsurance.com/corporate/investor-relations.

Source: qatarinsurance.com
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