Gross written premiums (GWP) at Qatar Insurance Company (QIC) grew substantively in 2016 boosted by the company’s growing international presence, in particular its reinsurance unit Qatar Re, which re-domiciled to Bermuda in 2015.
The company posted gross written premiums (GWP) of $2.72 billion last year, a 19 percent increase on the same period in 2015. It said key contributors to this growth included the group’s global reinsurance and specialty insurance subsidiaries and its life and medical businesses in the Middle East.
In particular, it noted that its subsidiaries in Bermuda, London and Malta grew at a rate of 18 percent and now account for approximately 70 percent of the Group’s total GWP.
However, its profits dipped slightly, saved mainly by better investment returns, these counteracting a combined ratio that is creeping towards 100 percent.
The company’s consolidated net profit fell slightly in the 12 months to $289 million, compared with $292 million in 2015. This was boosted by a net investment result that contributed $223 million in 2016, up 14 percent year-on-year.
The company’s underwriting result for 2016 was $232 million, down by 9 percent when compared to the same period in 2015, which Qatar Insurance Company said reflected the increase in the number of large industry loss events during the year. Its combined ratio increased to 98 percent compared with 96 percent in 2015.
Khalifa Abdulla Turki Al Subaey, group president & CEO of QIC Group, said: “2016 was a challenging year both for the Middle East and a number of global investment markets. In addition, insurance and reinsurance markets continued to soften across the globe. On the back of the superior diversification of our business and continued profitability from our insurance and reinsurance operations, we have once more proven the resilience of our business model whilst navigating turbulent waters. Moreover, the buoyancy of our personal lines retail business added to the success of the Group.”
He added: “We are cautiously optimistic about our outlook for the remainder of 2017. We will continue to focus our efforts on achieving the Group’s objectives and performing according to the strategic plans that have been set forth for ensuring sustainable growth.”