Qatar Insurance Company (QIC), a leading insurer in Qatar and the Middle East North African (MENA) region, has posted Gross Written Premiums which grew by 4% to QAR10.2bn ($2.8bn) for the first nine months of 2020, primarily driven by hardening of rates in commercial insurance and reinsurance.
In addition, QIC’s lead position in its domestic online personal lines business paid off well as customers transacted through the company’s digital platform, the company said in a statement.
QIC’s international carriers successfully continued their acknowledged strategy to expand in select low volatile lines of business while moderating their exposure in high severity classes. Today, QIC’s international business accounts for approximately 75% of the Group’s well diversified domestic and international book of business.
Alongside these developments, QIC’s domestic and MENA operations continued to drive forward the digitisation of its personal lines business, cementing its position as a leader in the regional markets.
In fact, during the lockdown imposed because of the COVID-19 pandemic, QIC’s personal insurance division — QIC Insured and QIC’s life and medical insurance subsidiary, QLM Life & Medical Insurance Company (QLM)— were able to capitalise on its highly sophisticated digital distribution, client management and operational platform, generating stable volume growth whilst delivering robust returns.
However, the underwriting performance of QIC Global, namely, Qatar Re, Antares, QIC Europe Limited, and the Gibraltar-based insurance companies, was negatively impacted by COVID-19 and the lockdown in key economies. For the first nine months of 2020, the Group’s net underwriting loss stood at QAR83m.
Despite the exceptional volatility in global financial markets, QIC’s investment portfolio performed reasonably well. Q1 and the first half of 2020 saw the portfolio values drop significantly, followed by a recovery of asset values in Q3 2020. QIC achieved a net investment income of QAR454m during 9M2020.
During the reporting period, QIC's continued endeavour towards process efficiency and automation resulted in further improvement of its already exceptionally low administrative expense ratio for its core operations of 6% for the first nine months of 2020 as compared to 6.4% during 9M2019. Overall, the consolidated net loss of the Group for the nine months of 2020 came in at QAR131m. This contrasts with consolidate net profits of QAR500m for the corresponding period last year.