QIC sees first half 2018 profits fall
Qatar Re stops writing fac business in Dubai
QIC sees H1 results hit by soft underwriting
Qatar Insurance Company Group (QIC), the insurance group that owns Bermuda-based Qatar Re, has reported what it describes as ‘solid’ financial results for the full year 2017.
The group admitted that the year had not been an easy one but that it had successfully weathered ‘severe headwinds from record global natural catastrophe losses and unexpected political challenges in the [Middle East] region’.
QIC reported premium growth of 18 percent year on year to $3.2 billion for 2017. Net underwriting results dropped to $32 million in 2017 compared to $232 million in 2016. Consolidated net profit fell to $115 million from $284 million over the period.
The group said that 2017 had been a challenging year for the global insurance industry due to the exceptional natural catastrophe events impacting the US, specifically the Harvey, Irma and Maria (HIM) windstorms, adding that the impact was exacerbated by the sequential nature of the windstorms that caused a total industry loss of up to $100 billion. Through its global operations Qatar Re and Antares’ Lloyd’s syndicate 1274, QIC was significantly impacted by these ‘unprecedented’ natural catastrophic events.
However, it added that these losses were well within QIC’s risk appetite and tolerance limits and that for QIC Group, HIM was an earnings event only, adding 6.8 percentage points to the group’s non-life combined ratio. The combined impact did not affect QIC Group’s solvency from a regulatory, ratings or internal capital adequacy point of view.
“In the face of unprecedented market adversity, QIC has proven its resilience and maintained its leading position across the MENA region,” said Khalifa Abdulla Turki Al Subaey, group president & chief executive officer of QIC Group. “At the same time, we have continued to expand our global footprint, positioning us well for any market hardening going forward.
“QIC reaffirms its vision to develop into a global top 50 insurance group. In this endeavour, our focus on sustainable and profitable growth, based on underwriting and investment management excellence, in combination with superior cost-efficiency, will remain unchanged.”
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