QIC reports premium growth of 44% to USD 2.1 billion for the first nine months of 2016
Doha, 25th October 2016: Qatar Insurance Company, (QIC), Qatar’s and the Middle East North African region’s leading insurer, today announced its financial results for the first nine months ended September 30, 2016, following a meeting of the Board of Directors. Presided over by H.E. Sheikh Khalid Bin Mohammed Bin Ali Al-Thani, Chairman & Managing Director of the Board of Directors of QIC, the Board approved the financial results for the first nine month period.
Overview of key financial results
|Figures, in USD million||9M 2016||9M 2015|
|Gross written premiums||2,124||1,477|
|Net written premiums||1,827||1,204|
|Net underwriting result||151||175|
|Non-life combined ratio||98.9%||94.3%|
|Figures, in USD million||9M 2016||Q4 2015|
QIC Group posted record Gross Written Premiums (GWP) of USD 2.1 billion for the first nine months of 2016, demonstrating a strong growth of 44% compared to the same period of the previous year. Key drivers of growth include QIC’s international reinsurance operations (Qatar Re and Antares) as well as domestic and regional personal lines of business.
The group’s consolidated net profit for the first nine months came in at USD 195 million, compared to USD 190 million during the same period last year. This result reflects softening global trading conditions as well as continued regional economic and investment headwinds. The group’s investment income stood at USD 174 million, up by 38% over the same period in 2015. The net underwriting income for the first nine months of 2016 was USD 151 million compared to USD 175 million during the same period last year, down by 14% on account of a few major losses.Despite the challenging market environment, QIC’s profitability remains robust.
Mr. Khalifa Al Subaey, Group President & CEO of QIC Group stated, “Despite prevailing volatility, our domestic, regional and global insurance operations have continued to perform in line with expectations. In particular, we have witnessed increased buoyancy in our personal lines business in the MENA region. The outlook for personal lines including motor, medical and life insurance business is a regional strength and an area for further focused growth. Going forward, in line with our strategy and expected development of the regional markets, we anticipate seeing benefits of the measures that have been implemented to boost both our efficiency and effectiveness. With greater cost rationalization, general and administrative expenses year-on-year have remained stable, despite significant premium growth. On the back of our new product launches that are underway and our renewed focus on growth markets, we are confident that our book of business will continue to expand.”
Mr. Khalifa Al Subaey continued: “The Group’s financial results reflect increasingly competitive global (re)insurance market conditions, compounded by continued financial market volatility. During the nine month period we were successful in adding another milestone to our list of achievements – Qatar Re, our global multi-line reinsurance subsidiary was ranked amongst the global Top 35 reinsurers in 2015 as per a report published by A.M. Best. In accordance with our business plans and our continued focus on niche and specialty opportunities, we will further grow and expand Qatar Re’s global franchise through capital injections and efficient capital management. Our Lloyd’s platform Antares also demonstrated sustained premium growth whilst remaining committed to prudent underwriting and risk selection.”