Qatar Insurance Company (QIC) has registered a net profit of QAR401m ($110m) for the first half of 2022, up 14.2% from QAR351m posted for the corresponding half last year, despite challenges in the global environment.
In a statement, QIC said that the group’s robust results were driven by the solid performance of its domestic and MENA operations, strong technical results across QIC’s franchise and the cost-leadership of its operations.
QIC’s technical profit rose to QAR276m for 1H2022, more than double the QAR117m reported for the corresponding period last year. The group’s strengthened technical performance reflects the improving performance in QIC’s international business along with continuing strong regional contributions.
Amid continued economic headwinds, the group’s gross premiums dipped 3.3% to QAR6.3bn in 1H2022. GWP from its domestic and MENA operations, which are dominated by advanced personal lines business, rose 13% to QAR1.7bn 1H2022. QIC’s international operations – Qatar Re, Antares, QIC Europe (QEL) and the Gibraltar-based carriers – which account for approximately 73% of the Group’s total GWP, achieved a premium volume of QAR4.6bn.
Commenting on the performance of the domestic and MENA operations, QIC Group CEO Salem Khalaf Al Mannai said, “As volume continued to expand, our operations in the Middle East continued to impress with strong underwriting profitability benefiting from our highly efficient and automated digital sales channels. QIC will have a renewed focus to further develop and grow the direct insurance vertical in the region by leveraging its position as a leader in digitalisation of personal lines and other selected lines of business.”
In addition, as part of QIC’s strategy to expand its presence in the direct insurance market of the GCC, it is exploring a merger with Vision Insurance through its subsidiary Oman Qatar Insurance. The merger is subject to the approval of the respective boards of directors, shareholders and stakeholders, satisfactory due diligence and the necessary regulatory approvals and the signing of legally binding agreements.
QIC Group also continued its efforts to enhance process efficiencies through automation and digitisation. In the first half of 2022, the group further lowered its already healthy administrative expense ratio for its core operations to 5.7%, an improvement from the expense ratio of 7% in 1H2021. M