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Qatar Insurance Group (QIC) has reported a net profit of US$130 million for the first nine months of 2018, marking a 53% year-on-year increase from US$85 million.
The Doha-based insurer said that the Middle East and North Africa (MENA) markets continued to produce stable premiums with underwriting profitability, despite geopolitical headwinds in the region.
The period featured natural and man-made catastrophe losses incurred in the third quarter, as well as reserve additions related to some older contracts in discontinued segments of business reported in the first quarter.
Gross written premiums increased from US$2.46 billion to US$2.62 billion, up 6.45% year-on-year. The firm’s non-life combined ratio improved slightly to 102%, from 108.2%, for the first nine months of 2017. Its net underwriting result increased to US$104 million, compared with a loss of US$28 million for the same period last year, the third quarter of which saw the devastating series of hurricanes Harvey, Irma, and Maria.
Furthermore, the company’s total assets grew from US$9.54 billion to US$11.02 billion over the past nine months.
“The third quarter of 2018 saw a string of major catastrophe losses, especially in the US and Japan,” said Khalifa Abdulla Turki Al Subaey, president and CEO of QIC Group. “Still, rate increases remain elusive as the growth of alternative capital with lower return hurdles places secular and not just cyclical pressure on re/insurance margins in the low frequency high severity space. Against this backdrop, we continue rebuilding our book of business towards low volatility characteristics, focusing on clients who pursue an innovative and analytical approach to product development and underwriting.”
