Qatar Insurance Company (QIC), the leading insurer in Qatar and the Middle East North African region announced strong financial results for the full year 2016. Benefiting from its global diversification QIC Group successfully weathered continued headwinds from insurance and capital markets. As a result, the Group reported robust growth and resilient profitability in the financial year ended 31st Dec, 2016. Presided by Mr. Sheikh Khalid bin Mohammed bin Ali Al-Thani, Chairman & Managing Director, the Board of Directors approved the financial results at its latest meeting.
|Figures in USD million
|Gross written premiums
|Net written premiums
|Net underwriting result
|Non-life combined ratio
|Consolidated net profit
|Return on Equity
|Earnings per Share (in USD); 2015 restated
|Net investment result
QIC Group’s consolidated net profit for the full year 2016 came in at USD 289 million, compared to USD 292 million for the same period last year. Despite continued regional and global financial market turbulence, QIC Group’s net investment result amounted to USD 223 million in 2016, up 14% year-on-year.
Reflecting the increase in the number of large industry loss events during the year, the Group generated an underwriting result of USD 232 million, down by 9% when compared to the same period in 2015.
As a result of the Group’s continued operational and cost discipline, the administrative expense ratio for its core operations declined from 12% in 2015 to 8% in 2016. The overall non-life combined ratio was at 98% for 2016, compared with 96% in the previous year. Return on Equity for the reporting period 2016 came in at 14.7%. As of 31st December 2016, QIC Group’s shareholders’ equity stood at USD 2.263 billion, up by 42% from USD 1.597 billion at the end of 2015.
Mr. Khalifa Abdulla Turki Al Subaey, Group President & CEO of QIC Group stated, “2016 was a challenging year both for the Middle East and a number of global investment markets. In addition, insurance and reinsurance markets continued to soften across the globe. On the back of the superior diversification of our business and continued profitability from our insurance and reinsurance operations, we have once more proven the resilience of our business model whilst navigating turbulent waters. Moreover, the buoyancy of our personal lines retail business added to the success of the Group.”
For 2015, Qatar Re was ranked 35 amongst the global top 50 reinsurers – a milestone which demonstrates the Group’s strong resolve to achieve excellence and prominence in the global marketplace. Key reasons for the intensified success of Qatar Re include the company’s relocation to Bermuda and the subsequent benefits from this jurisdiction’s Solvency II equivalency and closer proximity to the world’s largest insurance market, the US. Pursuing further on its mission of expanding its book of business, Qatar Re now operates from all major reinsurance hubs through fully licensed branches in Dubai, Zurich and Singapore, a representative office in London, and a services company in Doha.
Alongside this development, Antares and Antares Asia (entities of the Group and specialist insurer and reinsurer at Lloyd’s in London and Singapore) provided the Group access to a broad, well-diversified portfolio of underwriting services ranging from Property, Casualty, Terrorism, Political, Accident and Health, Energy, Marine and Aviation, and Reinsurance. In addition, in 2016, Antares joined the Lloyd’s underwriting platform in Shanghai, China. This was another key milestone for the Group as it is now able to grow its franchise in the world’s second largest insurance market which continues to expand at double-digit rates.
QIC Europe Ltd (QEL), the Group’s fully-owned Malta-based subsidiary dedicated to underwrite risks across the European Economic Area (EEA) has seen numerous new business opportunities throughout 2016. Capitalizing on its geographical advantage, QEL has further developed partnerships with chosen Managing General Agent (MGAs) and Coverholders to support carefully selected portfolios.
The Group reported yet another milestone in 2016 with the successful expansion of its retail insurance operations in the Middle East. In order to enhance its position the entire suite of personal insurance products underwent significant transformation in terms of product enhancement, improved service delivery and modernized distribution channels. Deploying talent and resources, the Group took important steps to create an easy and user friendly online retail platform, which enhanced overall customer experience and made insurance purchasing and managing claims convenient, quick and seamless.
Mr. Khalifa Abdulla Turki Al Subaey, Group President & CEO of QIC Group said, “We are cautiously optimistic about our outlook for the remainder of 2017. We will continue to focus our efforts on achieving the Group’s objectives and performing according to the strategic plans that have been set forth for ensuring sustainable growth.”