Qatar Insurance Company’s (QIC) international carriers, including its reinsurance arm Qatar Re, continued to expand in the first-half of 2019 and now account for around 75% of the group’s total gross written premiums (GWP).
At approximately $1.8 billion, QIC’s GWP remained stable in the first-half of 2019 when compared with the same period in 2018, as did net written premiums (NWP) at approximately $1.5 billion.
QIC is one of the leading insurers and reinsurers in Qatar and the Middle East North Africa (MENA) region, and in its H1 2019 earnings release notes that overall, domestic and MENA operations remained stable.
The firm states that it has adopted a more “restrictive and selective approach to new business generation,” which is in keeping with its ongoing focus on de-risking its book of business and placing a greater emphasis on low-volatility segments.
QIC’s international carriers, which includes Qatar Re, Antares, QIC Europe Limited and its Gibraltar based carriers continued to expand in select low-volatility areas. Combined, the firm’s international carriers now account for 75% of total GWP, which is up from the 74% in the first-half of 2018.
Overall, QIC’s net underwriting result was stable in the first-half of 2019 at $91 million, with the firm reporting a non-life combined ratio for the six-month period of 100.2%, compared with 100.5% in H1 2018. Discussing its combined ratio, QIC states that low severity, high frequency business now makes up a significant portion of the total underwriting portfolio.
Consolidated net profit attributable to the parent increased slightly year-on-year, from $106 million in H1 2018 to $113 million in H1 2019. QIC’s net investment result also improved in the period, from $112 million in 2018 to $117 million in 2019.
QIC Group’s President and Chief Executive Officer (CEO), Khalifa Abdulla Turki Al Subaey, commented: “We remain on track to repositioning our international book towards areas of lower volatility. QIC’s stable underwriting profitability increasingly reflects the attractive economics of this business which yields relatively stable and predictable margins.
“The Group’s outlook for the remainder of the year is cautiously optimistic. Our exposure to the geopolitical situation in the Middle East and the vagaries of global re/insurance pricing is relatively moderate.
“As QIC does not underwrite the market but focuses on bespoke, innovative and expertise- based transactions we can view the various risk scenarios presented by the political and economic environment with relative equanimity.”
