QIC ’14 profit jumps 33% to QR1bn

Diversification of underwriting and strong investment earnings helped Qatar Insurance Company (QIC) report 33% jump in net profit to QR1bn in 2014.The country’s dominant risk cover provider also recommended distribution of cash dividends of 25% (QR2.5 for each share) and bonus shares of 15% (three new shares for each 20 shares held), which will have to be approved by shareholders at the annual general assembly scheduled to be held on February 17.“This impressive result reflects the group’s continued growth and stability, arising from ongoing diversification of its underwriting operations, and the strong investment performance achieved in 2014,” according to Khalifa Abdulla Turki al-Subaey, QIC Group President and CEO.The group aims to capitalise on this excellent result and the momentum achieved in 2014 to further its goal of becoming one of the world’s leading insurance groups, he said.Gross written premiums grew 59% year-on-year to QR5.61bn, net underwriting by 37% to QR664mn and investment income and other revenues by 43% to QR1.03bn. The year 2014 was marked by the successful expansion of the group’s international business, which currently accounts for approximately 60% of its overall gross written premiums.QIC has grown its asset base to QR16bn from QR11.6bn in 2013, while maintaining robust levels of profitability, liquidity and market capitalisation.Through the acquisition of Antares Holdings, specialist insurance and reinsurance group operating in the Lloyd’s insurance market, and the establishment of a fully-owned Malta-based subsidiary, QIC Europe, the insurance group expanded its global footprint.QIC Europe is also well-poised to become a strategic platform for the group for the underwriting of risks situated throughout the European Economic Area.In 2014, global credit rating agencies Standard & Poor’s and A M Best reaffirmed QIC’s ratings of ‘A/Stable’ and ‘A (Excellent)’, reflecting the insurer’s well established presence in the Gulf Co-operation Council region and wider Middle East and North Africa and its expanding international operations.