Qatar Insurance Company (QIC), the leading insurer in Qatar and a dominant player in the Middle East North Africa (MENA) region, has reported a net profit of QAR525m ($144m) for the first nine months of 2024, around 16% higher compared to QAR453m over the corresponding period in 2023.
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.”
He 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, CEO of QIC Group, said, “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. “
Catastrophic events
While the continuing catastrophic events this year have an impact on global insurance markets, QIC with its 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 March 2024 Baltimore bridge collapse, 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 $35bn and $55bn, according to early industry estimates.
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 9M2024, 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.
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 prioritise its 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 QAR414m in 9M 2024, compared to QAR255m in 9M2023 with a 62% increase.
Investment performance
On the investment front, QIC continues to show its considerable resilience, reporting an investment income of QAR712m for 9M 2024, compared to QAR743m for the same period last year. The return on investment stood at 5% on an annualised basis.
Founded in 1964, QIC was the first domestic insurance company in the State of Qatar. Today, QIC is the market leader in Qatar and a dominant insurer in the GCC and MENA regions. QIC is the largest insurance company in the MENA region by total assets and is listed on the Qatar Stock Exchange.