Qatar Insurance Company (QIC), the parent company of Qatar Re and Antares, has announced that for the first nine months of 2015 its gross written premiums increased by 20 percent from $1.23 billion to $1.48 billion.
It also posted a $196 million net profit for the period, compared $220 million during the same period last year. QIC explained that the result “reflects softening global trading conditions as well as regional economic and investment headwinds due to lower oil prices.”
The report also said the “group’s net investment result stood at $161 million, down by 26 percent over the same period in 2014, reflecting adverse market dynamics both on the regional and global level.”
This result was, however, “partially offset by a very strong net underwriting result of $175 million for the first nine months of 2015, a significant increase of 25 percent on the previous year. The Company’s Return on Equity continues to be robust at 16.2 percent, weathering economic and financial market headwinds in the Middle East as well as globally.”
Group President & CEO Khalifa Al Subaey commented: “The Group’s financial results reflect increasingly competitive global (re)insurance market conditions, compounded by increased financial market volatility and the impact of falling oil prices on the Middle Eastern economies.
“Despite prevailing volatility, our domestic, regional and global insurance operations have continued to perform in line with expectations. In particular, we have witnessed increased buoyancy in our personal lines business in the region.
“The outlook for personal lines including motor, medical and life insurance business seems to be positive and is an area for further focused growth. Going forward, in line with our strategy and expected development of the regional markets, we anticipate seeing benefits of the measures that have been implemented. With greater process efficiencies and cost rationalization, general and administrative expenses year-on-year have remained stable.
“On the back of our new product launches that are underway and our renewed focus on growth markets, we are confident that our book of business will continue to expand.”
He also noted that “during the nine month period we were successful in adding another milestone to our list of achievements – Qatar Re, our global multi-line reinsurance subsidiary was ranked amongst the global Top 50 reinsurers.
“In accordance with our business plans and our continued focus on niche and specialty opportunities, we will further grow and expand its global franchise through capital injections and efficient capital management. Our Lloyd’s platform Antares also demonstrated sustained premium growth whilst remaining committed to prudent underwriting and risk selection.”
Source: Qatar Insurance Company (QIC)
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