QIC sees first half 2018 profits fall

Qatar Insurance Company Group (QIC), the insurance group that owns Bermuda-based Qatar Re, has reported that it made a net profit of $106 million in the first half of 2018, down 24 percent from the $139 million it reported for the same period of 2017.

Gross written premiums for the period rose slightly from $1.7 billion in the first half of 2017 to $1.8 billion in the first half of 2018. However, its net investment result fell severely from $155 million in the first six months of 2017 to $112 million in the same period of 2018.

QIC reported a combined ratio of 100.5 percent in the first half of 2018, compared to the 101.5 percent it reported in the same period of the previous year.

In a statement the company said that the MENA markets continued to produce stable premiums with underwriting profitability, weathering unabated geopolitical headwinds. However, it added the caveat that although QIC’s international operations was expanding in select low volatility classes, this was ‘at a slowing pace’, given the non-renewal of underpriced business.

“QIC is making excellent progress in repositioning its international book towards areas of lower volatility,” said Khalifa Abdulla Turki Al Subaey, group president & chief executive officer of QIC Group. “The most recent global treaty renewals in April, June and July and the disappointing rate developments have confirmed our bearish view on the prospects of traditional low-frequency high-severity business. Our earlier decision to de-emphasize volatility has proven right.

“The group’s outlook for the remainder of the year is cautiously optimistic. Our exposure to the geopolitical situation in the Middle East and the vagaries of global re/insurance pricing is relatively moderate. QIC’s very strong risk-based capital adequacy, in combination with the scale and diversification of our business portfolio, will underpin the group’s resilience going forward.”