Qatar Insurance Company, a large insurer in Qatar and the Middle East North Africa region, has reported a net profit of QAR 194 million (USD 53m) for the first quarter of 2024, compared to QAR 175 million (USD 48m) in Q1 2023.
In terms of growth, domestic and MENA operations gross written premiums (GWP) reached QAR 1.4 billion (USD 380m) in the quarter, compared to QAR 900 million (USD 247m) in Q1 2023.
As of Q1 2024, the MENA region contributes 52% of the company’s overall GWP, with the remaining 48% being generated internationally, compared to MENA premiums of 19% in 2020.
QIC notes that it is expanding its focus on the provision of health & life insurance, which the firm says has almost tripled as percentage of GWP, rising from 5% in 2022 to 14% of GWP in 2023. It’s a similar story for marine & aviation insurance, growing from 10% of GWP in 2022 to 14% in 2023.
At the same time, the company has reduced its exposure to the motor insurance market, from 45% of GWP in 2022 to 32% in 2023, particularly in the UK due to the market being adversely affected by supply chain challenges influenced by Brexit, resulting in greater volatility and risk.
QIC explains that it has also slimmed-down international operations, although this part of the business continued to perform strongly in Q1 2024, with increasingly healthy combined ratios, which have largely been driven by the success of the Antares Global brand, primarily driven by the Antares Lloyds Syndicate with a premium volume of QAR 1.3 billion (USD 360m) in Q1 2024, compared to QAR 1.8 billion (USD 490m) a year earlier.
Despite macroeconomic and geopolitical challenges, QIC has reported investment income of QAR 227 million (USD 62m) for Q1 2024, compared to QAR 223 million (USD 61m) in Q1 2023, with the return on investment reported at 5.2%, compared to 5.1% last year.
Sheikh Hamad bin Faisal Al Thani, Chairman, QIC Group, stated: “QIC begins 2024 in excellent financial health. The first quarter of the year saw the company consolidate and build upon the progress it made over the previous year – with a renewed focus on strengthening profitable domestic and regional businesses, extending its exceptional digital offering, and strategically improving its international operations while reducing exposure to underperforming markets.
“In spite of a global macroeconomic environment that remains uncertain in the near term and geopolitical challenges, QIC continues to enjoy robust growth through its core business lines, strong financials, and stable sources of income.”
Salem Khalaf Al Mannai, Chief Executive Officer, QIC Group, said, “QIC has delivered a very encouraging set of results in Q1 2024, with the highlights including major growth in its MENA direct business. Gross Written Premiums for the period stood at QAR 2.75 billion – a result underpinned by the company’s strategy of increasing the proportion of its premiums generated in domestic and MENA markets.
“QIC’s digital innovation in particular continues to be a key point of competitive differentiation for the company. Through multiple new features introduced to the online and mobile platforms in Q1 2024, our customers in Qatar and across the GCC can expect unparalleled convenience when onboarding and fulfilling their digital needs, which is reflected in the record numbers of users that are now utilising these channels.
“QIC is proud to once again have been named ‘Insurer of the Year in Qatar’ at the MENA IR Awards 2024, for the third consecutive year and “Best Travel Insurance Company in The Middle East” for the second consecutive year at the Global Banking & Finance Review Awards 2024. The company has also engaged in a number of exciting recent initiatives – from operating an innovation-focused booth at Web Summit Qatar 2024, the world’s largest tech conference, to promoting insurance literacy in Qatar through a new Edutainment establishment for young people.”
