QIC Group Q1 net profit increased by 15%

30 April 2019 — Cosmin CONCEATU
Qatar Insurance Company (QIC), a leading insurer in Qatar and the Middle East North African (MENA) region reported a net profit of USD 75 million for the first quarter of 2019.

"For QIC, the first quarter was a period of stability and consolidation. As part of our de-risking effort, we have adopted a more selective approach to writing new business, rewarded by an improving technical performance. QIC remains firmly committed to shifting to lines of business with lower volatility where we see a more attractive risk-return potential," stated Mr. Khalifa Abdulla Turki AL SUBAEY, Group President & CEO of QIC Group.

Q1 2019 key figures:

  • Gross written premiums: USD 969 million (-0.7%, USD 976 million in Q1 2018)
  • Non-life combined ratio: 100.2% (-1.4 pp., 101.6% in Q1 2018)
  • Consolidated net profit: USD 75 million (+15.4%, USD 65 million in Q1 2018)
  • Earnings per share: USD 0.21 (+16.7%, USD 0.18 in Q1 2018)
  • Net investment result: USD 76 million (+1.3%, USD 75 million in Q1 2018)
  • Total assets: USD 11,146 million (+3.6%, USD 10,760 million in Q1 2018)
  • Market capitalization: USD 3,522 million (+12.0%, USD 3,145 million in Q1 2018)
  • Shareholders' equity: USD 2,165 million (+2.0%, USD 2,122 million in Q1 2018)

The MENA markets continued to produce stable premiums with underwriting profitability, weathering geopolitical headwinds in the region. The Group's international carriers, namely Qatar Re, Antares, QIC Europe Limited (QEL) and its Gibraltar based carriers continued to expand in select low-volatility areas and now account for approximately 76% of QIC's total GWP, compared to 73% in the first quarter of 2018.

The Group's net underwriting result improved by 45% to USD 46 million. This positive development reflects the Group's successful shift towards lower-volatility business which provides a predictable long-term stream of profits.

For the first quarter of 2019, QIC reports a non-life combined ratio of 100.2%, compared with 101.6% for the same period of the previous year.

Overall, the Group's net profit for Q1 2019 increased by 15% to USD 765 million, driven by both improving underwriting results and resilient investment income.

The Group recorded stable investment income of USD 76 million, compared to USD 75 million for the same period last year. QIC's total investment return, including capital gains and losses, amounted to an annualized 6.2%.

During the reporting period, QIC has vigorously maintained its focus on streamlining operations in order to further improve its operational efficiency. At Q1 2019, the administrative expense ratio for its core operations came in at 6.1%. The Group's ongoing endeavor towards process efficiencies and automation continued to yield fruit.

Source: Qatar Insurance Group

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