QIC Group reports net profit of $184 million in 2019
Qatar Insurance Company saw a slight increase in profits in 2019 but its combined ratio rose due to the impact of typhoons Faxai and Hagibis, among other factors.
QIC reported a net profit of $184 million for the financial year 2019, up from $182 million in 2018. Gross written premiums were $3,528 million, up 2 percent from $3,463 million in 2018. The non-life combined ratio was 103.3 percent, as compared to 101.3 percent in 2018.
QIC said its operations benefited from the group’s strategic reallocation of capacity into lower volatility and higher frequency risks, such as short-tail personal lines business. In addition, growth was driven by the successful digitization of QIC’s direct insurance business in the MENA region.
QIC’s international business continued the integration of its operations under the QIC Global umbrella. Compared with 2018, the group’s gross written premiums grew by 2 percent to $3.5 billion. With the catastrophe losses incurred due to the Typhoons Faxai and Hagibis in the 3rd and 4th quarter, reserve increases due to the decision of the UK government to revise the Ogden discount rate to minus 0.25 percent, and the impact of the reserve strengthening policy applied across the international business, QIC reported a combined ratio of 103.3 percent for 2019, compared to 101.3 percent in the previous year.
Commenting on QIC’s financial performance for 2019, Khalifa Abdulla Turki Al Subaey, group president of QIC Group said: “In 2019, QIC Group was particularly pleased with the strong and profitable premium growth that we enjoyed in our core markets in the MENA region. At the same time the integration of our international business; Qatar Re, Antares, QIC Europe (QEL) and the Gibraltar based insurance companies, is progressing on target. These developments reflect the success of our efforts to refocus our underwriting capacity on risks with a more favourable risk-return ratio, namely, our short-tail, personal lines business. Moreover, in the MENA region, we are spearheading the digitization of our industry, thereby increasing our operational efficiency while strengthening our client relationships.”
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