Qatar Insurance Group expands despite challenging 2017
Bermuda-based Qatar Insurance Company (QIC) continues expanding the business to become a “global top 50 insurance group” despite a challenging 2017.
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.
Through its global operations Qatar Re and Antares’ Lloyd’s syndicate 1274, QIC was significantly impacted by natural catastrophic events such as the Harvey, Irma and Maria (HIM) windstorms. Another major event that hit insurers operating in the UK insurance market, where QIC Group also had exposure through its international operations, was the sharp and unexpected reduction of the Ogden discount rate in the first quarter in 2017.
“In the face of unprecedented market adversity, QIC has proven its resilience and maintained its leading position across the MENA (Middle East and North Africa region) region. At the same time, we have continued to expand our global footprint, positioning us well for any market hardening going forward,” said CEO Khalifa Abdulla Turki Al Subaey.
“QIC reaffirms its vision to develop into a global top 50 insurance group. In this endeavor, our focus on sustainable and profitable growth, based on underwriting and investment management excellence, in combination with superior cost-efficiency, will remain unchanged.”
QIC has recently acquired Markerstudy Group’s Gibraltar-based insurance companies through its reinsurance arm, Qatar Re. The deal is subject to regulatory approvals. Markerstudy underwrites more than 5 percent of the UK motor insurance market, generating annual premiums of about £750 million.
“The main strategic attraction of this unique deal is the addition of a sizeable lower volatility book of UK motor insurance business with predictable and long-term profitability,” said Al Subaey. “Moreover, through our subsidiaries Qatar Re and Antares, we are well positioned to benefit from any cyclical upturn in global specialty and other non-motor re/insurance markets. And, finally, the Markerstudy transaction will enable QIC Group to continue writing UK business under any post-Brexit scenario.”
“The Markerstudy transaction is yet another important milestone on our journey towards becoming a Global Top-50 Insurance Group,” Al Subaey noted. “This is the vision our Board of Directors formulated back in 2011 when QIC Group’s non-MENA business represented just 20 percent of our total portfolio. Meanwhile, we have successfully repositioned Qatar Re as a global player and Antares as our Lloyd’s specialty platform. Including the Markerstudy companies, the share of QIC Group’s non-MENA business will soon exceed 80 percent.”
QIC subsidiaries Qatar Re, Antares and QIC Europe operate in Bermuda, London, Zurich, Malta, Singapore and Shanghai.
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