Qatar Insurance Company CEO claims progress in repositioning move

Doha-based Qatar Insurance Company (QIC) CEO Khalifa Abdulla Turki Al Subaey believes that the group is making progress in repositioning the business.

“QIC is making excellent progress in repositioning its international book towards areas of lower volatility,” Al Subaey said. “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,” he added.

QIC reported a combined ratio of 100.5 percent for the first half of 2018 compared to 101.5 percent in the same period of 2017. Gross written premiums grew to $1.81 billion from $1.71 billion over the period. Overall, net profit fell to $106 million in the second quarter of 2018 from $139 million a year ago.

QIC subsidiary Qatar Reinsurance Company (Qatar Re) has ceased writing new and renewal business from its branch office in Singapore from July 20.

In addition, in June Qatar Re suspended writing all of its facultative business from its branch office in the Dubai International Financial Centre (DIFC) following a strategic review.

“The group’s outlook for the remainder of the year is cautiously optimistic,” Al Subaey said. “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.”