Profitability in the insurance industry in Qatar remained strong and sustainable in 2025, according to the Qatar Central Bank (QCB) in its annual Financial Stability Report released last month.
Total income climbed to QAR20.81bn ($5.7bn), while the return on equity (ROE) normalised slightly to 7.8%. In addition, the sector’s resilience is highlighted by a strengthening of capital positions as solvency ratios saw a marked improvement. Furthermore, liquidity continued to improve in the last three years.
“Underwriting performance remained efficient, though the combined ratio saw a marginal uptick to 79.7%, driven primarily by a slight increase in the loss ratio (66.8%). However, the expense ratio continued its downward trend, reaching a lean 12.8%,” the report said. The return on equity reached 7.6% in 2025, compared to 4.3% in 2024.
A relatively higher drop in technical provisions and an increase in GWP led to a significant drop in the ratio of technical provisions to net earned premiums, indicating more efficient management of liabilities relative to earnings
QCB also said that during 2025, insurance companies were supported by increases in written premiums. According to the report, total written premiums for insurance companies rose to QAR897m in 2025, compared to QAR878m in 2024, an increase of 2.2%. Written claims reached QAR602m in 2025 compared to QAR558m in the previous year.
Other developments
Financials aside, the report also highlighted work carried out in regulating the insurance industry. In 2025, the implementation of the risk-based supervision (RBS) system continued. One pilot test was conducted as part of the development of the RBS system.
Further enhancements were undertaken in 2025 to improve supervisory efficacy, encourage sound risk management, and align regulations with both international standards and national economic objectives. In relation to environmental, social, and governance (ESG) for insurance companies, a specialised framework was issued to implement supervisory principles and define regulatory expectations. In addition, the QCB issued guidelines for the preparation of sustainability reports in accordance with international standards, aiming to enhance transparency and bolster confidence in sustainability disclosures.
Also on the regulatory front, a circular was issued outlining the supervisory requirements for submitting Own Risk and Solvency Assessment (ORSA) and Financial Condition reports. These guidelines facilitate an organised supervisory cycle and assist companies in maintaining compliance.
Furthermore, to ensure the integrity and security of information and infrastructure and in alignment with financial technology sector strategy, rules on data processing and protection were issued. These guidelines govern the optimal mechanisms for data collection, processing, storage, and transfer, aimed at mitigating risks to data privacy and information security.
The structure of Qatar’s insurance sector remained stable in 2025, with the QCB regulating 14 companies, comprising 10 domestic insurers and four branches of foreign companies. The insurance market consisted of nine conventional insurance and five takaful operators.