Qatar Insurance Company (QIC) has reported a net profit of USD106 million for the first half of 2018.
QIC says that MENA markets continued to produce stable premiums with underwriting profitability, weathering unabated geopolitical headwinds. At a slowing pace, given the non-renewal of underpriced business, QIC’s international operations further expanded in select low volatility classes. Compared with the first half of 2017, the Group’s gross written premiums expanded by 5 per cent to USD 1.8 billion. Including reserve additions related to some older contracts in discontinued segments of business reported in the previous quarter, QIC reports a combined ratio of 100.5 per cent in the first half of 2018, against 101.5 per cent in the same period of the previous year. Excluding any prior-year reserve developments, the underlying combined ratio came in at a healthy 98.8 per cent, commensurate with the low-volatility nature of QIC’s book of business.
Khalifa Abdulla Turki Al Subaey (pictured), Group President & CEO of QIC Group, says: “QIC is making excellent progress in repositioning its international book towards areas of lower volatility. The most recent global treaty renewals in April, June and July and the disappointing rate developments have confirmed our bearish view on the prospects of traditional low-frequency high-severity business. Our earlier decision to de-emphasize volatility has proven right.”
“The Group’s outlook for the remainder of the year is cautiously optimistic. Our exposure to the geopolitical situation in the Middle East and the vagaries of global re/insurance pricing is relatively moderate. QIC’s very strong risk-based capital adequacy, in combination with the scale and diversification of our business portfolio, will underpin the Group’s resilience going forward.”
