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Qatar: QIC Group achieved 57% jump in net profit in 2018

Source: Middle East Insurance Review | Mar 2019

Qatar Insurance Company (QIC) said its net profit surged by 56.9% to $182m in 2018, while its GWP grew by 8.1% to $3,463m. 
 
In a statement, QIC said the MENA markets continued to produce stable premiums with underwriting profitability, weathering geopolitical headwinds in the region. Its international operations entered a phase of consolidation, shifting the underwriting book to lower volatility classes, whilst shedding underpriced (severity) business.
 
The group’s net underwriting income increased steeply to $158m in 2018 against $32m in 2017. The lower income in 2017 was because of a devastating series of major hurricanes (Harvey, Irma, and Maria).
 
In 2018, QIC continued to record negative, albeit abating reserve developments on some older contracts in areas of business that are no longer within the company’s risk appetite and have been discontinued in line with its de-risking strategy. This process went according to plan and was completed at the end of 2018. Furthermore, QIC diligently applied its recently adopted strengthened reserving governance and philosophy, resulting in a more cautious view of ultimate loss projections and a slower release of prior-year IBNR reserves.
 
The insurer continued to expand low-volatility business, which represents a considerable portion of its total portfolio. Its acquisition last year of Markerstudy Group’s Gibraltar-based insurance companies by its subsidiary Qatar Re is another milestone in QIC’s shift towards low-volatility business.
 
The group’s international operations, namely Antares, Qatar Re, and QIC Europe (QEL) remained the key growth engines and represented 77% of total GWP, while the local and regional markets represented 23%.
 
QIC Group’s domestic and MENA operations growth remained stable, while the company’s life and medical insurance subsidiary, QLM, headquartered in Doha; and OQIC, the group’s listed subsidiary in Oman, continued to expand. Further impetus for growth arose from the ongoing digitalisation of the group’s MENA retail pillar. M 
 
QAR1 = $0.27
 
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