"The COVID-19 pandemic has a significant impact on the industry, affecting insurers' top line, underwriting results and investment returns. Despite the prevailing headwinds, QIC's year-on-year premium growth to QAR 10.2 billion is attributable to the hardening of premium rates in the commercial insurance market and the continued expansion of our domestic online business, which delivered stable returns," the company explained.
QIC's international carriers successfully continued their acknowledged strategy to expand in select low volatile lines of business while moderating their exposure in high severity classes. Today, QIC's international business accounts for approximately 75% of the Group's well diversified domestic and international book of business.
The underwriting performance of QIC Global, namely, Qatar Re, Antares, QIC Europe Limited, and the Gibraltar-based insurance companies, was negatively impacted by COVID-19 and the lockdown in key economies. For the first nine months of 2020, the Group's net underwriting loss stood at QAR 83 million.
During the reporting period, the administrative expense ratio for core operations was 6% for the first nine months of 2020 as compared to 6.4% during 9M2019. Overall, the consolidated net loss of the Group for the nine months of 2020 came in at QAR 131 million.
Earlier this year, QIC Group successfully issued USD 300 million perpetual non-call 5.5 year subordinated Tier 2 capital notes. While offering excellent security to policyholders, the new issuance further strengthened the Group's robust capital position and reinforced its efficient capital structure.
Khalifa Abdulla Turki Al Subaey, QIC's Group President, noted:
"QIC Group benefits from its very strong and robust risk-based capital adequacy in combination with the scale and diversification of our business portfolio. We are encouraged by the resilience that QIC Group has demonstrated in these unprecedented times. While consumers and businesses in major economies were in lockdown, we continued to generate strong organic growth originating from our online personal insurance business in the MENA region, a clear testimony to the strength and goodwill of the QIC brand and the trust and confidence customers place in the Group. The growth was further benefited from the hardening of commercial rates."