QIC Group half-yearly net profit rises to QR401mn
August 07 2022 08:14 PM
QIC Group chairman and managing director Khalifa Abdulla Turki al-Subaey, Chief Executive Officer Sa
Khalifa Abdulla Turki al-Subaey, QIC Group chairman and managing director; Salem Khalaf al-Mannai QIC Group chief executive officer.

Doha

Qatar Insurance Company (QIC) registered a “strong” net profit of QR401mn for the first half (H1) of the year that ended on June 30.
In the same period last year, QIC had posted a net profit of QR351mn.
The Group’s “robust” results were driven by the “solid” performance of its domestic and Mena operations, strong technical results across QIC’s franchise and the cost-leadership of its operations.
Amid continued economical headwinds the Group’s gross premium volume remained stable at QR6.3bn in the first half of 2022, building on QIC’s strengths in personal lines and advanced online services.
In an environment of high volatility in the financial markets, where the economic growth estimates are showing a downward trend on account of the global inflation challenges and increased uncertainty due to the conflict in Ukraine and elsewhere, the outlook for business development and profitability of the global insurance industry, also cast a shadow in 2022.
The aftermath of Covid-19 pandemic continues to confront the global insurance industry with enormous challenges that resulted in shortages in supply and price volatility while inflation has been creeping up.
Besides the organisational challenges caused by lockdown measures and movement restrictions, insurers have seen increased pricing and reduced capacity in many lines.
Within this challenging environment, QIC Group further progressed on its path of cementing its leadership in its domestic markets in Qatar and the Mena region, while reducing its exposure to volatile severity risks.
QIC Group chairman and managing director Khalifa Abdulla Turki al-Subaey said, “QIC Group has delivered strong results in the first half of 2022. Thanks to our balanced mix of international, regional, commercial and retail businesses, as well as our technology platforms, QIC benefits from a variety of different revenue streams that position us well to weather the current business environment of unstable growth, high inflation and volatile capital markets.
“We have reduced our exposure to severe risks in global markets and instead increased our focus in the more predictable retail markets in our region. In addition, our high level of automation and digitalisation has proved invaluable in strengthening our position with our clients during the pandemic and beyond. QIC Group continues to help further diversify the Qatari economy and shape the future of the insurance industry in the Mena region.”
Group chief executive officer Salem Khalaf al-Mannai said, “In H1, 2022, QIC’s international operations – Qatar Re, Antares, QIC Europe Limited (QEL) and the Gibraltar based carriers – which account for approximately 73% of the Group’s total GWP, achieved a premium volume of QR4.6bn.
“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. However, reinsurance capacity remained sufficient although global retro and alternative capital markets hardened”.
He added, “Our domestic and Mena operations, which are dominated by our advanced personal lines business, turned in yet another increase in GWP to QR1.7bn, up by 13% from QR1.5bn in H1, 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 digitalisation of personal lines and other select line of business”.
QIC’s technical profit rose to QR276mn in H1, 2022, up from QR117mn in the same period last year. The Group’s strengthened technical performance reflects the improving performance in QIC's international business along with the continuing strong regional contributions.
While global investment environment continued to be challenging and volatile and took a toll to the investment performance QIC’s investment team performed impeccably in this challenging market environment, cementing its recognition as the leading investment house in the region. The Group’s net investment amounted to QR500mn in H1, 2022.
QIC Group also continued its efforts to enhance process efficiencies through automation and digitisation. In the first half of 2022 the Group further lowered its already healthy administrative expense ratio for its core operations to 5.7%, an improvement from the expense ratio of 7% in H1, 2021.
QIC has announced the launch of the first comprehensive online portal offering Qatar's fastest digital solution for insurance policy purchase and renewal.
Commenting on the launch of the new portal, al-Mannai said, "We are excited to launch the first and fastest all-inclusive insurance portal in Qatar and to be the only insurance company in the country that enables its customers to purchase insurance policies in just 2 minutes.
“The new online platform called ‘qic.online’ is revolutionary on all levels and certainly another important step in our journey towards a complete digitalisation of all our insurance products and services."



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