Qatar Insurance (QIC) Group has reported a net profit of $184m for the 2019 financial year, $2m higher than in 2018, according to a statement issued by the company.
QIC’s operations benefited from the Group’s strategic reallocation of capacity into lower volatility and higher frequency risks, such as short-tail personal lines business. In addition, growth was driven by the successful digitization of QIC’s direct insurance business in the MENA region. QIC’s international business continued the integration of its operations under the QIC Global umbrella.
Compared with 2018, the Group’s gross written premiums grew by 2% to $3.5bn. With the catastrophe losses incurred due to the Typhoons Faxai and Hagibis in the 3rd and 4th quarters, reserve increases due to the decision of the UK government to revise the Ogden discount rate to minus 0.25%, and the impact of prudent reserve strengthening policy applied across the international business, QIC reports a combined ratio of 103.3% for 2019, compared to 101.3% in the previous year.
Commenting on QIC’s stable financial performance for 2019, Mr Khalifa Abdulla Turki Al Subaey, group president of QIC Group, said, “In 2019, QIC Group was particularly pleased with the strong and profitable premium growth that we enjoyed in our core markets in the MENA region. At the same time the integration of our international business; Qatar Re, Antares, QIC Europe (QEL) and the Gibraltar based insurance companies, is progressing on target. These developments reflect the success of our efforts to refocus our underwriting capacity on risks with a more favourable risk-return ratio, namely, our short-tail, personal lines.”
QIC’s international business posted gross written premiums of $2.70bn in 2019 (representing 76% of total premiums of $3.53bn), compared to $2.67bn in 2018 (76% of total premiums of QAR3.46bn).
QIC continued to consolidate further its position as a global insurance and reinsurance player with a local presence in 13 markets across the Middle East, Europe, the Americas and Asia.
QIC’s international business, namely, Antares, Qatar Re, QIC Europe Limited (QEL) and the Gibraltar based insurers continued the integration of its operations under QIC Global. Qatar Re now ranks 26th in AM Best’s rankings of the World’s Top-50 Largest Reinsurance Groups, up from 35th rank in 2016.
At 31 December 2019, QIC’s shareholders’ equity stood at $2.32bn, compared to $2.12bn at the end of 2018.