QIC Group recorded 15% growth in GWP to US$849 billion in the first quarter of 2017 compared with the same period last year, on the back of solid expansion across its key geographical markets, lines of business and client segments.
Key contributors to the growth were the group’s global reinsurance and specialty insurance subsidiaries, namely Qatar Re and Antares, in addition to its life and medical insurance subsidiary, QLM, headquartered in Doha. The group’s international subsidiaries in Bermuda, London and Malta now account for approximately 69% of total GWP.
The group also recorded a significant increase in investment and other income to $83 million from January to March compared to $55 million for the same period last year.
Net underwriting results, however, decreased by 35% to $49 million compared to $76 million for same period in 2016, as a result of a change in the Ogden Discount Rate that was announced in March this year by the Justice Secretary in the UK. The discount rate related to lump-sum personal injury compensation was cut from 2.5% to -0.75%. This had a significant negative impact on the motor insurance business in the UK with losses expected to be about GBP7 billion (US$9.1 billion).
Qatar Re, QIC’s global reinsurance subsidiary, recognised the Ogden impact in 1Q2017, reducing its underwriting income by about $31 million.
Overall, the group’s net profit for the first quarter of 2017 stood at $85 million compared to the $90 million in the same quarter last year.
As of 31 March 2017, shareholders’ equity stood at $2.29 billion. In the first quarter, the group, via Qatar Re, also successfully issued Tier 2 capital in the amount of $450 million. The issue was 14 times oversubscribed.
Mr Khalifa Abdulla Turki Al Subaey, Group President & CEO of QIC Group, said: “The results for 1Q2017 highlight the Group’s sound risk management principles and its constant endeavour at exploiting profitable growth opportunities. We will continue to increase our book of business, build on our capabilities and expand our reach in order to introduce innovative products and services in the target markets.”
He continued: “The Group’s outlook for the future remains cautiously optimistic. Our long-term goal remains to seize market opportunities as they arise whilst focusing on maintaining close proximity with our clients and adapting to a rapidly changing environment.” M
GBP1 = US$1.30