QIC Group sees net profit increase to QAR 525mn in 9M 2024

Qatar Insurance Company (QIC Group) has announced its financial results for the first nine months of 2024 reporting a net profit of QAR 525 million, a 16% increase compared to the same period the year prior.

The global macroeconomic outlook has improved in 2024, with easing inflation rates, getting closer to normal levels. Despite a year of major events impacting the insurance industry, QIC’s has been able to successfully weather the challenges thanks to its now balanced portfolio mix, the firm noted.

“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,” a QIC Group spokesperson stated.

Adding: “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.”

With global insurance rates on a softening trajectory, and with geopolitical risk remaining high QIC is focusing on making profits in the Qatar and MENA insurance markets, which are currently more stable and profitable.

As a result, QIC has exited less profitable international businesses, leading to a 43% increase in revenue from its Qatar and MENA operations in the first nine months of 2024, compared to the same period last year.

QIC also highlighted its ‘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 prioritise its motor insurance business in the MENA region.

QIC’s international insurance operations, having undergone successful downsizing efforts in recent years, now demonstrate robust combined ratios, indicating a healthy combined ratios, the firm noted.

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.

Sheikh Hamad bin Faisal Al Thani, Chairman of QIC Group, stated: “QIC’s strong momentum over 9M 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.”

He added: 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.”

QIC’s investment performance remained resilient in 9M 2024, with investment income reaching QAR 712 million. While slightly lower than the QAR 743 million earned during the same period last year, the annualised return on investment still hit a respectable 5%.

QIC’s investment portfolio remained stable and consistent with the previous year’s composition.

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