At its general assembly meeting, presided over by deputy chairman Abdulla bin Khalifa al-Attiya, shareholders approved increase in the company's capital, post the effect of bonus issue of (15%), which is (three shares for each twenty shares).
“For 2017 our outlook remains cautiously positive. We shall focus on consolidation and enhance our operational efficiency," QIC chief executive Khalifa Abdulla Turki al-Subaey said.
With renewed focus on achieving bottom line-driven growth, QIC would continue to maximise value for shareholders, trusted business partners and customers while supporting development of the sector and the economy, he said.
Highlighting that the overall performance in 2016 highlights its well-thought-out strategy and its successful execution, QIC said despite sluggish economic growth and fluctuating commodity prices, it recorded strong operational performance, coupled with a robust premium growth, taking gross written premium (GWP) to QR9.9bn, up 19% year-on-year.
The underwriting results stood at QR844mn in 2016, reflecting its robust prowess, global business diversification and strong risk-adjusted capitalisation.
The consistent approach of applying global standards and best practices in its assessment of the current and future solvency and capital adequacy requirements have ensured that QIC remain well-positioned and capitalised amidst the pressure of global market conditions.
Key contributors to the growth were the dedicated global reinsurance and specialty insurance subsidiaries as well as the life and medical segments emanating from the Middle East. The international subsidiaries in Bermuda, London and Malta grew 18% and now account for about 70% of QIC’s total GWP.
QIC Group’s consolidated net profit for 2016 was QR1.03bn. It reflected regional economic and investment headwinds due to lower oil prices and continued softening of global reinsurance and specialty insurance markets.
On the back of prevailing global market volatility, the net investment income was QR925mn, attributed to QIC’s prudent principle of managing the group’s investment portfolio and pursuing an effective cost discipline.
QIC Group generated a healthy return on equity of 14.7% in 2016. Its shareholders’ equity stood at QR8.2bn, up 42% year-on-year.
“Despite global repercussion, which has massively influenced major sectors in the region, QIC Group has witnessed strong business momentum and has performed in line with our expectations," al-Subaey said.