Qatar Insurance Company (QIC), a leading insurer in Qatar and the Middle East and North Africa (MENA) region, announced a net profit of QR 571 million ($157 million) for the first nine month of 2022.
Group gross written premiums stood at QR 7.8 billion, as QIC’s domestic and Mena operations continued to increase their gross written premiums by 14% to QR 2.3 billion. In line with the strategy of restructuring or exiting low-margin or loss-making businesses, the QIC Group has announced its intention to divest its Gibraltar-based direct insurance companies.
Khalifa Abdulla Turki Al Subaey, Chairman and Managing Director of QIC Group, said: “QIC Group continued to deliver healthy results despite headwinds of soaring inflation, geopolitical uncertainties, high disaster losses natural conditions and financial market volatility. In this exceptional environment, “our group has further strengthened its leading position in our domestic markets. We have reduced our exposure to volatile gravity risks and laid the foundations to further reduce our portfolio and dispose of activities that no longer correspond to our strategy. lean but well-diversified business.”
In the first nine months of 2022, an as-yet-unprecedented combination of major headwinds challenged the insurance industry. Geopolitical tensions, particularly the Russian war on Ukraine, and the exits from the Covid-19 pandemic continue to cause supply chain and energy price disruptions.
While the Middle East is expected to experience strong GDP growth in 2022, mature markets in Europe may well slip into recession. Inflation is expected to reach nearly 9% globally, while monetary policies have tightened considerably, with the US Fed raising its federal funds rate to 3.25% from 0.5% in just six months, pushing borrowing costs at their highest level since 2008.
While the rising cost of capital will eventually translate into higher insurance rates and better yields on fixed income securities, in the near term insurers must contend with exceptional volatility in capital markets and a decline in market values of fixed income securities. In addition, inflation will drive the loss ratio for legacy and long-term risks, a threat the group will be monitoring closely. In addition to these challenges, insurers still had to grapple with rising losses from natural disasters estimated at nearly $100 billion for the first nine months of 2022.
Bankable underwriting performance
Despite these fierce headwinds, in the first nine months of 2022, QIC Group achieved gross written premiums of QR 7.8 billion. Salem Khalaf Al Mannai, Group Managing Director, said: “QIC’s domestic insurance business in Qatar and the Mena region recorded another strong performance in the first nine months of 2022, delivering a strong profit of subscription. Gross written premiums in the region increased by 14% to reach QR 2.3 billion, compared to QR 2 billion in the first nine months of 2021. Volume growth was mainly driven by strong demand for offers of QIC’s market-leading online and digital products and services.
He added: “The international operations of the group, QIC Global, which had recently announced its intention to align its main companies under the Antares brand, generated 5.5 billion QR in premium volume, which represents approximately 70% of the group’s total gross written premiums. ”
QIC Group generated underwriting income of QR 272 million in the first nine months of 2022 from its continuing operations, underscoring the group’s strong performance based on strong results from its domestic business. The group’s combined ratio for continuing operations improved to 99.3% in the first nine months of 2022, from 99.8% for the same period of 2021.
In the first three quarters of 2022, QIC Group’s net investment income was QR 671 million. With an annualized return on investments of 4.4%, the group has once again demonstrated its remarkable expertise in asset management despite the high volatility of the markets.
Process efficiency and automation
The group’s continued focus on efficiency and process automation paid off as QIC Group further improved its already exceptional operational efficiency with a healthy administrative expense ratio for its core business.
Overall, the group recorded a consolidated net profit of QR 571 million from continuing operations during the period.
Gibraltar Based Insurance Companies
In line with the group’s strategy to exit the low-margin and loss-making international direct business, QIC has decided to divest the Gibraltar-based direct insurance companies. QIC has received an offer to purchase from a reputable institutional buyer which is currently being negotiated. The proposed disposal plan is subject to the approval of all competent authorities.
Reduce greenhouse gas emissions
QIC is committed to supporting Qatar’s ambition to reduce the country’s greenhouse gas emissions by 25% by 2030. QIC has put in place an Environmental, Social and Governance (ESG) strategy and framework ) long-term, which have been approved by its Board of Directors, to support Qatar’s strategy. ESG Commitments and aims to integrate ESG guidelines into its underwriting and asset management philosophy. In addition, an ESG and Sustainable Development Committee has been created to ensure that group-wide efforts are targeted and channeled to achieve the set objectives.
Merger with Vision Insurance
As part of its strategy to expand its presence in the profitable direct insurance market within the Gulf Cooperation Council (GCC), QIC is exploring the possibility of a merger with Vision Insurance SAOG through its subsidiary Oman Qatar Insurance Co. SAOG. QIC supports a potential merger between the two entities, subject to the approval of the respective Boards of Directors, shareholders and stakeholders, satisfactory due diligence and necessary regulatory approvals and the execution of legally binding agreements .
QIC wins multiple awards
QIC is named “Best Online Insurance Company in the Middle East” at the Global Banking & Finance Review Awards 2022. This recognizes QIC’s outstanding performance in 2022 in terms of digitizing products and services. Additionally, the company reached a record number of customers using online channels to meet their insurance needs. This award reflects the company’s success in reshaping online insurance with the introduction of innovative and market-leading online insurance solutions, particularly with the launch of qic.online, the most fastest and most comprehensive way to purchase and renew policies.
QIC also won Domestic General Insurer of The Year and Auto Insurance Initiative of The Year in Qatar at the 2022 Insurance Asia Awards.
Epicure Islamic Investment Management
Epicure Investment Management (EIM), a wholly owned subsidiary of QIC and one of the largest regulated investment managers in Qatar, manages over $7 billion in investments across all asset classes for its clients and has an impeccable investment record. Epicure Islamic Investment Management, jointly owned by QIC (51%) and QInvest (49%), is a Sharia-compliant entity authorized and regulated by the Qatar Financial Center Regulatory Authority (QFCRA). The new company will focus on a wide range of Islamic asset management activities, ranging from investments to developing and structuring innovative Islamic investment products.
ADEPT to drive digital data exchange
Global, wholly-owned InsurTech company Anoud Technologies LLC announced the successful launch and integration of the ACORD Data Interchange Platform and Translator (ADEPT). This platform enables real-time data exchange, translation and transformation, connecting insurance industry stakeholders. Anoud Tech, an ACORD Solution Provider Member and Licensed Integrator Partner of the ACORD Solutions Group, has integrated ADEPT into its Anoud+ insurance platform to enable its insurance customers to send and receive ACORD Global Reinsurance and Large Commercial (GRLC) Accounting (EBOT) and Claims (ECOT) with their digitally enabled inbound and outbound business partners.
Antares Syndicate 1274
Antares Managing Agency Ltd, the specialist Lloyd’s insurance and reinsurance subsidiary of the QIC Group, has announced that Antares Syndicate 1274 was ranked No. 1 in investment performance based on three-year average investment returns for financial year 2019 to 2021, according to JP Morgan Asset Management’s Lloyd’s Peer Analysis. Antares achieved an average annual return on investment of 3.6%, compared to an average of 1.6% for the peer syndicate.
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