Qatar Insurance Company (QIC) has reported a net profit of US$63 million for the first quarter of 2018, down 24% year-on-year from US$83 million.
According to a statement by the insurer, it was able to generate stable premium growth at consistent underwriting profitability, despite continued headwinds, most of them political in nature. This was demonstrated by gross written premium (GWP) growth of 15% to US$976 million.
QIC Group’s key contributors were its international carriers, namely Qatar Re, Antares and QIC Europe Limited (QEL), in addition to its life and medical insurance subsidiary, QLM, headquartered in Doha, Qatar, and other regional operations. The group’s international subsidiaries in Bermuda, the UK, and Malta accounted for around 73% of QIC’s total GWP, up from 69% during the same period last year.
Investment income remained relatively stable at US$75 million compared to US$78 million in the first quarter of 2017. QIC reported a combined ratio of 101.6%, including reserve additions, compared to 99.1% last year. On a normalised basis, excluding any prior-year reserve developments, QIC’s combined ratio was at 98.5%.
“Our growth and underlying technical performance in the first quarter of 2018 demonstrate that QIC is on track to shifting its underwriting focus to lines of business with lower volatility,” said Khalifa Abdulla Turki Al Subaey, president and chief executive of QIC Group. “This shift reflects both our medium-term global industry outlook and a strong commitment to differentiate ourselves through innovative products and services in personal lines.”
He added: “The Group’s outlook for the remainder of the year is cautiously optimistic.
Political challenges continue while the prospects for a meaningful hardening of global reinsurance and specialty insurance markets remain subdued.”
