Qatar Insurance Company (QIC), an insurer for Middle East North African (MENA) region, has recorded a net profit of QR 230 million (USD 63 million) for the first quarter of 2022.
The company also reported on its exposure to the ongoing conflict in Ukraine.
During Q1, QIC incurred claims of QR 36.4 million (USD 10 million) related to the conflict, although it says the ultimate extent of the impact to its business will depend on the course of future developments.
In terms of capital, liquidity funding and operational strength, QIC says it remains “robust,” despite the threat of uncertainty and potential capital contractions to markets, rates and the overall insurance industry.
QIC attributes its Q1 performance to solid results in its domestic and MENA operations, as well as strong technical results across its franchise and the management of its operational costs.
Amid continued economical and political headwinds, the Group’s gross premium volume remained stable at QR 3.2 billion in the first quarter of 2022.
While the economic impact from the COVID-19 pandemic was fading in Q1, global markets saw themselves confronted with rising interest rates as central banks sought to tame in an accelerating inflation, the company noted.
In addition, markets had to fight the impact from supply chain disruptions and, most importantly, had to digest the shock of the Russian-Ukraine war.
Khalifa Abdulla Turki Al Subaey, Chairman & Managing Director of QIC Group stated “QIC Group continues to forge ahead, delivering solid and dependable results in an environment of unprecedented uncertainty. The performance of our Group fills us with pride as we see how well our strategic priorities pay off. This achievement is a testament to the strength of our brand. Based on our cutting-edge technological capability and our focus on lean and agil operations, QIC provides valued services and security to customers in the Middle East, Europe and across the international insurance markets.”
“In Q1 2022, QIC’s international operations – Qatar Re, Antares, QIC Europe Limited (QEL) and the Gibraltar based carriers – which account for approximately 73 percent of the Group’s total GWP, achieved a premium volume of QR2.3bn,” said Salem Khalaf Al Mannai, Group Chief Executive Officer.
“The performance of the Group’s international operations profited from rate hardening and tighter conditions due to prior year loss experience, a rising interest rate environment and growing uncertainties amid accelerating inflation,” he explained. “However, reinsurance capacity remained sufficient although global retro and alternative capital markets hardened”.
The CEO further added: “While we continue to focus on our set strategy of expanding the footprint in profitable direct-line insurance markets within GCC ,our domestic and MENA operations, which are dominated by our advanced personal lines business, turned in yet another increase in GWP to QR854m, up by 11 percent from QR772m in Q1 2021.”
“As volume continued to expand, our operations in the Middle East continued to impress with strong underwriting profitability benefiting from our highly efficient and automated digital sales channels. QIC will have a renewed focus to further develop and grow the direct insurance vertical in the region by leveraging its position as a leader in digitalization of personal lines and other select line of business”.
