Qatar Insurance Company (QIC) recorded 15 per cent growth in gross written premium (GWP) to USD849 billion in Q1 2017 when compared to the same period in the previous year.
Key contributors to the reported growth were the group’s global reinsurance and specialty insurance subsidiaries, namely Qatar Re and Antares, in addition to its life and medical insurance subsidiary, QLM, headquartered in Doha, Qatar.
The group’s international subsidiaries in Bermuda, London and Malta now account for approximately 69 per cent of QIC’s total GWP.
The group recorded a significant increase in investment and other income to USD83 million compared to USD55 million for the same period last year.
Net underwriting results decreased by 35 per cent to USD49 million compared to USD76 million for same period last year, as a result of a change in the Ogden Discount Rate that was announced in March this year by the Justice Secretary in the UK.
The discount rate related to lump-sum personal injury compensation was cut from 2.5 per cent to -0.75 per cent. This had a significant negative impact on the motor insurance business in the UK with expected losses to the insurance market of about GBP 7 billion. Qatar Re, QIC’s global reinsurance subsidiary, has recognised the Ogden impact in Q1 2017, reducing its underwriting income by about USD31 million.
Overall, the group’s net profit for the reporting period stood at USD85 million as compared to USD90 in the same quarter last year.
For 2017, the group has renewed its focus on streamlining operations in order to further improve its operational efficiency. At Q1 2017, the administrative expense ratio for its core operations came in at 8.5 per cent.
As of 31 March 2017, QIC Group’s shareholders’ equity stood at USD2.29 billion. In Q1 2017, the group, via Qatar Re, also successfully issued Tier 2 capital in the amount of USD450 million. The issue was 14 times oversubscribed.
Khalifa Abdulla Turki Al Subaey, group president and CEO of QIC Group, says: “The results for Q1 2017 highlight the group’s sound risk management principles and its constant endeavour at exploiting profitable growth opportunities. We will continue to increase our book of business, build on our capabilities and expand our reach in order to introduce innovative products and services in the target markets.
“The group’s outlook for the future remains cautiously optimistic. Our long term goal remains to seize market opportunities as they arise whilst focusing on maintaining close proximity with our clients and adapting to a rapidly changing environment.”
