The tensions in the Middle East region have escalated significantly in recent weeks and it is too early to assess the potential impact of the conflict on the business of Qatar Insurance Co (QIC), says S&P Global Ratings (S&P).
In its commentary, S&P added, “However, we believe that war-related exposures are either highly reinsured or subject to war exclusions and should therefore be manageable.
“The company’s investment portfolio is highly geared toward bonds and cash deposits, with low exposure to high-risk assets.
“Although the conflict will likely weigh on QIC’s top-line growth prospects in 2026, we currently do not anticipate any significant losses that would erode its underwriting performance.”
Ratings
S&P affirmed its 'A-' long-term issuer credit and financial strength ratings on QIC and QIC Europe (QEL). It also affirmed the 'A-' financial strength ratings on the group's guaranteed subsidiaries. The outlook on all ratings is ‘Stable’.
S&P said that the ‘Stable’ outlook reflects its view that QIC will maintain its leading position in Qatar and across the GCC region, while maintaining capital adequacy above the 99.99% benchmark in S&P’s model over the next two years.
At the same time, S&P affirmed its 'BBB' issue ratings on two outstanding subordinated debt instruments issued by QIC (Cayman) and guaranteed by QIC.
S&P also assigned its 'A-' long-term insurer financial strength rating on Oman Qatar Insurance (OQIC). The outlook is ‘Stable’.
Revenue and net income
The international credit rating agency says that it anticipates that QIC will report a modest revenue growth rate of up to 5% in 2026, as the company continues to expand its regional and international business. QIC’s insurance revenue increased by about 3% to QAR8.9bn ($2.4bn) in 2025 from QAR8.6bn in 2024. Following strong international expansion and weaker-than-expected results, QIC has streamlined its international business in recent years, which declined to about 41% of total gross written premiums in 2025, down from 48% in 2024 and 81% in 2020.
QIC recorded net income of QAR806m in 2025, growing from QAR734m in 2024. QIC’s robust investment results, along with its profitable underwriting performance, supported this improvement. In 2025, QIC’s net combined ratio stood at about 93.0%, compared with 92.6% in 2024. S&P anticipates that QIC will continue to report a net combined ratio of 92%-95% in 2026 and 2027. S&P expects that the annual net income will be between QAR500m-QAR700m in 2026 and 2027.
Balance sheet
S&P projects that QIC's capital adequacy will remain above the 99.99% confidence level, per its risk-based capital model, over the next two years. QIC’s equity at year-end 2025 grew to QAR10.2bn from QAR9.0bn at year-end 2024, supported by profitable earnings and the issuance of perpetual subordinated notes in July 2025.