DOHA: Qatar Insurance Group, the leading insurer in the Middle East North African region, has reported a premium growth of 18 percent to QR11.7bn for the financial year ended December 31, 2017, compared to previous year (2016).
As a globally diversified insurance group, QIC successfully weathered severe headwinds from record global natural catastrophe losses and unexpected political challenges in the region.
Defying such adversity, the Group reported robust growth and resilient profitability in the financial year.
Sheikh Khalid bin Mohammed bin Ali Al Thani, Chairman and Managing Director of QIC Group, who presided over the Board of Directors’ meeting approved the financial results for the reporting period at its latest meeting.
2017 has been a challenging year for the global insurance industry due to the exceptional natural catastrophe events impacting the US namely Harvey, Irma and Maria (HIM) windstorms. The impact has been exaggerated due to sequent $100bn.
Other major event that adversely impacted insurers operating in the UK insurance market, where QIC Group also had exposure through its international operations, was the sharp and unexpected reduction of the Ogden discount rate in the UK in the first quarter in 2017 which forced the insurers to increase their loss reserves. The industry-wide impact of Ogden is estimated to be $10bn increase in loss reserves. The above unprecedented losses are well within QIC’s risk appetite and tolerance limits. The combined impact was only an earnings event and did not affect QIC Group’s solvency from a regulatory, ratings or internal capital adequacy point of view.
Against this adverse backdrop, QIC Group generated a net underwriting result of QR115m in 2017, down by 86 percent compared with the previous year. The Group continued to expand across its global and regional target markets, lines of business and client segments.
Once more, the Group’s key growth engines were Qatar Re, Antares and QIC Europe Limited (QEL) which now account for approximately 75percent of the Group’s total GWP.
Domestically, Q Life and Medical Insurance Company (QLM), the dominant life and medical insurance company in Qatar added buoyancy to the Group’s overall performance.
QIC Group’s consolidated net profit for the full year 2017 came in at QR418 m, compared to QR1.03bn for the same period of the previous year. Despite political and other unrelated economic turbulences in the Middle East, QIC Group’s investment income and other income amounted to QR986m in 2017 against QR925m in 2016, further adding to a long track record of superior investment performance based on a careful diversification across geographies and asset classes. As a testament, in 2017, QIC was conferred the “Top Investment House from the MENA region” accolade by a publication and survey of global repute.
QIC Group’s reinsurance arm continued to benefit from its Bermuda domicile’s Solvency II equivalency and proximity to the world’s largest insurance market, the US, combined with a strong local presence in the major reinsurance hubs of Zurich, London, Singapore and Dubai.
Qatar Re continued on its path of diversification and expansion through its recent acquisition of Markerstudy’s Gibraltar-based insurance companies, namely, Markerstudy Insurance Company Limited, Zenith Insurance PLC, St Julians Insurance Company Limited and Ultimate Insurance Company Limited (subject to regulatory approvals). Markerstudy Group writes more than 5percent of the UK motor insurance market, a book of about GBP 750 million. This transaction provides Qatar Re with access to lower volatility business with predictable returns, balancing other areas such as property and specialty reinsurance.
Khalifa Abdulla Turki Al Subaey, Group President & CEO of QIC Group, said: “In the face of almost unprecedented market adversity, QIC has proven its resilience and maintained its leading position across the MENA region. At the same time, we have continued to expand our global footprint, positioning us well for any market hardening going forward.”
Al Subaey added: “QIC reaffirms its vision to develop into a global top 50 insurance group. In this endeavor, our focus on sustainable and profitable growth, based on underwriting and investment management excellence, in combination with superior cost-efficiency, will remain unchanged.”
