QIC Group net profit increase 16% to QAR 525 million
Qatar Insurance Company (“QIC Group”, “QIC”), the leading insurer in Qatar and the Middle East North Africa (MENA) region, has reported a net profit of QAR 525 million for the first nine months of 2024, compared to QAR 453 million over the same period in 2023. Following a meeting of the Board of Directors dated 29 October 2024, which was presided over by Sheikh Hamad bin Faisal bin Thani Jasim Al Thani, Chairman of QIC Group, the Board approved the financial results.
Sheikh Hamad bin Faisal Al Thani, Chairman of QIC Group, stated: “QIC’s strong momentum over the first nine months of 2024 has been reflected in another outstanding set of results. The company has focused intensively on strengthening its position in domestic and MENA markets – where Gross Written Premiums have increased 43%, compared to the same period in 2023. This is evident in the growth coming from its direct GCC business, arising from health and personal lines business, as well as the recognition it has received for offering an unparalleled digital experience to customers – across several business lines – at the region’s most respected industry awards.”
Sheikh Hamad bin Faisal Al Thani added: The reduction in global inflation we have seen this year suggests that the outlook for the macroeconomic climate is becoming more encouraging, though challenges certainly persist. QIC’s long term strategy of reducing exposure to underperforming international markets – augmented most recently by the strategic restructuring of its UK motor business – positions the Group well to weather the impact of international economic volatility.
Mr. Salem Khalaf Al Mannai, Chief Executive Officer of QIC Group, said: QIC enters the final quarter of the year in excellent shape, having reported robust, consistent and stable consolidated net profits over the past nine months of QAR 525 million. Once again, the company’s continued endeavours towards maximising the benefits of AI technologies in business decision making, process efficiencies and automation have bolstered its already exceptional operational efficiency, and cemented QIC’s position as a market leader in digital innovations.
Mr. Al Mannai added: “The strategic restructuring of our international business is in line with QIC Group's strategy to streamline loss-making and low margin businesses and to bring the international operations of the Group back to profitability. This restructuring now positions the Group for greater stability and profitability with controlled exposure to UK Motor as a reinsurer instead of a direct insurer. By successfully completing this restructuring, the Group is confident that it will have a well-diversified and balanced portfolio between its MENA and international business. We are pleased with the outcome of consistent and stable underwriting income with improving combined ratio”.
Mr. Al Mannai further added: “Having already been named ‘Insurer of the Year in Qatar’ at The MENA IR Awards, QIC was honored to receive the ‘General Insurance Company of the Year’ accolade at the Asset Triple A Private Capital Awards. We are committed to being at the forefront of the industry in this region and to help shape its future – from bringing leading experts in the sector together to explore the impact and promise of artificial intelligence, to making insurance accessible to everyone through engagement initiatives, and ensuring that we uphold our sustainability and ESG imperatives”.
Financial overview
The outlook for the global macroeconomic environment has generally improved over the course of 2024, with inflation rates receding almost to moderate levels.
While the continuing catastrophic events during the year of 2024 impact global insurance markets, QIC with its now balanced portfolio mix has been able to successfully weather the challenges. Within the region, the UAE witnessed multiple floods, highlighting the increasing frequency and severity of extreme weather events, leading to multi-billion dollar insured motor and property losses that were largely absorbed by the international reinsurance industry. The recent catastrophic losses in the region may lead to market rate hardening, as insurers and reinsurers adjust their pricing to account for the heightened risk. On the international front, the loss from the Baltimore bridge, which is considered as one of the largest single marine insurance losses ever and the recent US hurricanes Helene and Milton are likely to cause private market insured losses of between US$35 billion and US$55 billion, according to early industry estimates.
Strengthening the Group’s presence in its core MENA insurance markets
With global insurance rates in a softening trajectory, and with geopolitical risk remaining high, QIC has been steadfast in its longer-term strategy of focusing on profitable markets in Qatar and the MENA region, while exiting loss making and low margin international businesses. This is showcased by the increase in GWP from its domestic and MENA operations by 43% in 9M 2024, compared to the same period last year. QIC currently has a balanced and well diversified portfolio with 54% of its insurance business written by the MENA entities and 46% of business underwritten by international operations.
With regards to its lines of business, QIC has recently focused on growing its personal lines and health insurance divisions, as well as marine & energy insurance. While the company’s exposure to the international motor insurance market has been intentionally reduced – particularly in the UK, as a result of supply chain challenges largely induced by Brexit – it continues to prioritize its award-winning motor insurance business in the MENA region. More broadly, QIC’s international insurance operations, which have been successfully slimmed down over the past few years, are exhibiting healthy combined ratios.
The Group posted Insurance Service Results of QAR 414 million in 9M 2024, compared to QAR 255 million in 9M 2023, with a 62% increase.
Investment performance
In the investment front, QIC continues to show its considerable resilience, reporting an investment income of QAR 712 million for 9M 2024, compared to QAR 743 million for the same period last year. The return on investment stood at 5% on an annualized basis.
As of the end of 9M 2024, the composition of QIC’s investment portfolio continues to remain stable and consistent with the previous year.
Overall, the Group’s net profit for 9M 2024 stood at QAR 525 million as compared to QAR 453 million in the same period last year and the parent’s share of net profit stood at QAR 518 million for 9M 2024 compared to QAR 446 million in the same period last year.
Key focus areas
QIC awarded the ‘General Insurance Company of The Year’ award
The third quarter of 2024 has seen QIC continue to pick up industry awards, adding to several previous accolades the company has already won this year – including being named ‘Insurer of The Year in Qatar’ (for the third consecutive year) at ‘The MENA IR Awards’ in January.
Notably, the ‘Asset Triple A Private Capital Awards’ recognized QIC as its General Insurance Company of The Year 2024. Issued by one of Asia’s leading publications, the award reflects QIC’s key contribution to reshaping the general insurance landscape in Qatar, not least through its innovative digital offerings spanning motor, travel and home insurance.
More widely, digital innovation has been an area in which the company has received considerable recognition over the past few months. QIC’s mobile app and its contribution to levelling up the digital experience of motorists in Qatar was recognised by the Insurance Asia Awards 2024 in July 2024 and was awarded the ‘Mobile App of The Year in Qatar’. A one-stop shop for drivers’ insurance needs, the app offers features including seamless purchasing and renewals, the option for payment in monthly instalments, and insurance status tracking with live updates. Earlier that same month, QIC received three titles at the Global Brands Magazine Awards 2024, all pertaining to technological excellence: ‘Best Digital Insurance Brand in Qatar’, ‘Best Insurance Website in Qatar’, and ‘Best Car Insurance Mobile App in Qatar’.
Upholding sustainability and ESG commitments
As the first insurer in the Middle East to sign the United Nations Environment Programme-Finance Initiative’s Principles for Sustainable Insurance (UNEP-FI PSI), QIC holds one of the highest ESG Ratings in the MENA region’s insurance industry and complies with a number of global reporting standards. The company is upholding its commitment to support Qatar’s efforts to reduce the country’s greenhouse gas emissions by 25% by 2030 – as well as to achieve net zero in its own emissions by the same date. QIC has developed an ESG framework and set out a long-term ESG strategy, with the goal of adopting ESG policies into its underwriting and asset management philosophy.
QIC Insurtech summit explores the future of insurance in the age of artificial intelligence (AI)
In May, QIC held the third edition of its annual MENA Insurtech Summit 2024, the premier event for insurance and Insurtech stakeholders in the Middle East and North Africa region. The three-day summit was held under the theme ‘AI Impact on the Insurance Value Chain’, and brought together 1,500 participants including 120 speakers, 40 insurance companies, 40 investors, 50 insurtechs, and an assembly of experts, entrepreneurs, regulators and technology partners from across the region and beyond to explore the latest trends and opportunities in the region's fast-growing insurtech ecosystem, which is being transformed by AI technologies.
Supporting health and sporting initiatives
Throughout the first nine months of 2024, Qatar Insurance Group steadfastly upheld its corporate social responsibility (CSR) commitments by organizing and sponsoring a number of initiatives and events.
As part of its commitment to supporting the national sports scene, QIC will support the sixth edition of the national endurance competition, ‘Samla 2024.’ An event that showcases endurance and determination, and a source of inspiration and pride for millions of followers, the race is set to take place in December over a distance of 200 kilometres, featuring swimming, running, shooting, kayaking, and mountain biking. It is expected to see a record participation rate this year.
Additionally, QIC’s CSR initiatives during the first nine months of the year included: actively participating in and sponsoring the 34th General Conference of the General Arab Insurance Federation (GAIF), the largest regional gathering of insurers and reinsurers, which took place from 19th to 21st February 2024 in Muscat, the capital of the Sultanate of Oman. QIC also sponsored the Katara International Exhibition for Kahraman, which celebrates local craftsmanship, and S’hail, an exhibition promoting the cultural heritage of falconry. In addition, Qatar Insurance Group continued to bolster Qatar's status as a capital of sports by sponsoring the prestigious Golf tournament the “Commercial Bank Qatar Masters 2024”.
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