QIC (Qatar Insurance Company), a renowned insurer in the MENA region, has announced Q2 financial results. The second quarter ended on June 30th, 2016. The financial results of Q2 2016 were approved in QIC board meeting Presided by Sheikh Khalid bin Mohammed bin Ali Al-Thani, Chairman & Managing Director.
In second quarter, the regional and global market conditions remained fragile. However, oil prices successfully recovered from 12 year low seen in February this year. The prices are still marking below the near-term fiscal break-even levels in most of the oil-exporting countries. And, as a result they experienced protracted economic slowdown.
Despite these headwinds, the GPW (gross premiums written) of QIC Group significantly grew at a rate of 44% quarter on quarter to 5.48 billion QAR.
The Group reported robust net income of QAR 602 million compared to the net profit of QAR 578 million for the same period last year. The Earnings per Share (EPS) amounted to QAR 2.73 for Q2 this year when compared to EPS amounted to QAR 2.68 for the same period the last year.
Robust Underwriting Performance
The continued growth in GPW reflects the QIC Group’s strong diversification and innovative capabilities that to some extent, allow it to cope with the twin challenges of difficult international and regional financial market conditions on the one hand and the very soft global reinsurance and specialty insurance markets on the other. On the back of QIC’s what continuously works is the commitment to technical discipline and prudence, the net underwriting result in Q2 2016 came in at QAR 438 million; marking a slight increment of 3% over Q2 of the previous year.
Reinsurance premiums, generated through the Group’s dedicated international reinsurance subsidiary Qatar Re, grew at a rate of 41 percent to QAR 2.38 billion and accounted for 43% of the Group’s total gross premiums. QIC’s Lloyd’s insurance platform Antares recorded growth of 16 percent to QAR 847 million which is 15 percent of QIC’s total business.
The QIC’s administrative expense ratio remained virtually unchanged, regardless of continued investments in expanding different operations both regionally and globally. The stable expense ratio testifies to Group’s operational efficiency and the effectiveness of several cost containment measures.
Resilient Investment Performance
The Q2 of 2016 was characterized by continuous volatility in regional and global financial markets. Against this backdrop, investment revenue of QIC Group came in at QAR 511 million compared with QAR 498 million in the same Q2 of 2015.
Mr. Khalifa Al Subaey, Group President & CEO of QIC Group stated: “In the second quarter of 2016 we further progressed in our transformation into a globally diversified composite insurer and reinsurer. Capitalising on our strong technical capabilities and robust operating platform, we managed to defend the Group’s bottom line against the many pressures from volatile financial markets and fiercely competitive insurance and reinsurance marketplaces.”
Added he said: “The Group witnesses renewed buoyancy in its regional home markets. In Qatar, we are benefiting from changes to the regulation. Across the Middle Eastern region, we have been successful in digitizing our products and services, pioneering innovations such as smart cards for our personal insurance offerings. Internationally, we have firmly cemented the position of our global carriers Qatar Re and Antares for further growth. These major achievements are also reflected in S&P’s recent confirmation of our A/Stable credit rating”.
In 2nd quarter of 2016, QIC has successfully completed a rights issue, with shareholders’ equity growing to QAR 8 billion. The increase in capital further strengthens the Group’s capital adequacy ratio and underpins its anticipated future growth.
Commenting on QIC’s near-term prospects, Mr. Al Subaey remarked: “The global and regional business environment is set to remain demanding for the foreseeable future. However, our outlook continues to be cautiously optimistic. Thanks to our innovative skills in personal lines and acknowledged strengths in global reinsurance and specialty insurance we are confident in our ability to continue expanding the Group’s footprint whilst maintaining a clear focus on the bottom line”.
Qatar Insurance Company (QIC) is a publicly listed composite insurer with a consistent performance history of over 50 years and an underwriting footprint across the Middle East, Africa and Asia. Founded in 1964, QIC was the first domestic insurance company in the State of Qatar. Today, QIC is the market leader in Qatar and the largest insurer in the MENA and Gulf region, in terms of premium income, profitability and market capitalization. QIC is one of the highest rated insurers in the MENA and Gulf region with a rating of A/Stable from Standard & Poor’s and A (Excellent) from A.M. Best. It is listed on the Qatar Exchange and has a market capitalization of over QAR 19 billion. For further information on QIC, please visit: www.qatarinsurance.com.