QIC looking to expand in Southeast Asia from Singapore business hub

Qatar Insurance Company (QIC), which has established Singapore as its business hub in the Southeast Asia, is further expanding its global footprint, its group president and chief executive Khalifa Abdulla Turki al-Subaey said yesterday.
QIC, Qatar’s dominant insurer, established a dedicated platform at Lloyd’s Asia in Singapore following the 2014 acquisition of Antares, the specialist Lloyd’s insurance and reinsurance group.
“Singapore has always been a great market for expansion. While we can look at other Southeast Asian nations like Thailand and Vietnam, we chose Singapore as a business hub because of ‘comfortable laws’ and ease in doing business,” al-Subaey told Gulf Times on the sidelines of QIC annual general assembly meeting.
During the meeting, which was chaired by Abdulla bin Khalifa al-Attiya, deputy chairman of the board of directors, shareholders of the group approved the increase in the company’s capital from QR1.84bn to QR2.43bn.
Also, the distribution of cash dividend payout of 25% for the year ending December 31, 2015 and an issue of bonus shares - one for every 10 held - was approved.
QIC’s audited consolidated financial statements for the year ended December 31, 2015 highlighted record gross written premiums (GWP) of QR8.35bn, a strong growth of 49% on the previous year.
Key drivers of growth included reinsurance premiums, generated through QIC’s dedicated global reinsurance subsidiary, Qatar Re, which grew at a rate of 116%, now accounting for 50% of the group’s total premium income.
The progress in the group’s business placed additional demand on the requirement of capital to support strategic growth in the business. In order to facilitate further growth and increase sustainability, the shareholders approved the recommended issuance of shares as rights to its existing shareholders at the closing date on March 1 of one share for every five held at QR50 per share.
The QIC Group has posted net profit of QR1.06bn in 2015, compared to QR1.02bn for the same period last year amid regional economic and investment headwinds due to lower oil prices and continued softening of global reinsurance and speciality insurance markets.
Against the backdrop of growing regional and global financial market volatility, the group’s net investment result came in at QR712mn. This was partially offset by a very strong net underwriting result of QR926mn, a significant increase of 39% on the previous year. QIC’s overall profitability also benefited from the group’s continued cost discipline.
Return on equity for the reporting period came in at 18.1%, against 18.4% in the previous year. This result compares favourably with both QIC’s regional peers, as well as diversified international insurance and reinsurance groups. The group’s shareholders’ equity stood at QR5.99bn in December 31, 2015, up by 1% from QR5.92bn over the previous year.
Al-Subaey said: “Last year has been a watershed year for the global economy, which was confronted with multiple challenges that caused substantial disruptions across both developed and developing economies.
“2016 is likely to be a challenging year as the world adjusts to dipping oil prices, increasing interest rates, and slower rates of growth from China. However, our outlook remains cautiously positive on the prospects of growth in the emerging markets. By offering innovative solutions and quality services, we will continue to maximise value for shareholders, trusted business partners and customers while supporting development of the sector and the economy.”