Qatar Insurance Group (QIC Group) reported a net profit of USD 137 million for the first nine months of 2019, up by 5.4% compared to same period of prior year. According to QIC Group, the Middle East North African (MENA) markets continued to produce stable premiums with underwriting profitability, weathering geopolitical headwinds in the region.
QIC Group first nine months figures (vs. 9M2018)

• Gross written premiums: USD 2,694 million (+2.7%)
• Net written premiums: USD 2,371 million (+4.8%)
• Net investment result: USD 168 million (-0.5%)
• Non-life combined ratio: 101.5% (-0.5 pp.)
• Total assets: USD 10,851 million (+0.8%)
• Net profit: USD 137 million (+5.4%)

QIC Group's international operations further expanded in select low volatility classes. Compared with the first nine months of 2018, the Group's gross written premiums expanded by 3% to USD 2.7 billion. The Group's international carriers namely Qatar Re, Antares, QIC Europe Limited (QEL) and its Gibraltar based carriers account for approximately 76% of the Group's total GWP.

The Group's net underwriting result improved by 11% to USD 115 million, compared with 104 million for the same period last year. Low-severity high frequency business now accounts for a significant portion of QIC's total underwriting portfolio. The underwriting performance during the reporting period was adversely affected by the UK Government's decision to revise the Ogden discount rate to minus 0.25% on 15th July 2019.

QIC Group reported a combined ratio of 101.5% for the first nine months of 2019, compared with 102% in the previous year. Excluding the impact of reserve developments as a result of changes to the Ogden discount rate in the UK, the underlying combined ratio for the first nine months of 2019 was 99.3%.

Investment income came in at USD 168 million in the first nine months of 2019, compared with USD 169 million in the same period of the previous year. QIC Group's current investment return amounted to an annualized 4.6%, compared with 4.5% for the same period of 2018.

In the first nine months of 2019 the administrative expense ratio for its core operations came in at 6.8%. According to QIC, the Group continues to reap the benefits from its ongoing endeavor towards process efficiencies and automation as well as the integration of back office operations across its international entities.

Overall, the Group's net profit for the first nine months of 2019 increased by 6% at USD 137 million, compared with USD 130 million in the same period last year.
Khalifa Abdulla Turki Al Subaey, Group President and CEO of QIC Group, commented on the results:

"We continue to execute on our strategic shift towards lower volatility segments of the international markets. QIC's stable underwriting profitability testifies to the attractive economics of this business, with relatively stable and predictable margins. (...) The Group's near-term outlook remains cautiously optimistic. Our exposure to the geopolitical situation in the Middle East and the vagaries of global re/insurance pricing is relatively moderate. As QIC does not underwrite the market but focuses on bespoke, innovative and expertise- based transactions we continue to be shielded from a number of major risk scenarios presented by the political and economic environment."

More financial information about Qatar Insurance Group is available at www.qatarinsurance.com
Source: qatarinsurance.com