Qatar Insurance Company (QIC), the leading insurer in Qatar and the Middle East North African (MENA) region, registered a strong net profit of QAR 401 million for the first half (H1) of this year ending 30 June 2022. The Group’s robust results was driven by the solid performance of its domestic and MENA operations, strong technical results across QIC’s franchise and the cost-leadership of its operations. Amid continued economical headwinds the Group’s gross premium volume remained stable at QAR 6.3 billion in the 1st half of 2022 building on QIC’s strengths in personal lines and advanced online services.
QIC expands its leadership in a challenging environment
In an environment of high volatility in the financial markets, where the economic growth estimates are showing a downward trend on account of the global inflation challenges and increased uncertainty due to the conflict in Ukraine and elsewhere, the outlook for business development and profitability of the global insurance industry, also cast a shadow in 2022.
The aftermath of COVID-19 pandemic continue to confront the global insurance industry with enormous challenges that resulted in shortages in supply and price volatility while inflation has been creeping up. Besides the organisational challenges caused by lockdown measures and movement restrictions, insurers have seen increased pricing and reduced capacity in many lines. Within this challenging environment, QIC Group further progressed on its path of cementing its leadership in its domestic markets in Qatar and the MENA region, while reducing its exposure to volatile severity risks.
Mr. Khalifa Abdulla Turki Al Subaey, Chairman & Managing Director of QIC Group stated “QIC Group has delivered strong results in the first half of 2022. Thanks to our balanced mix of international, regional, commercial and retail businesses, as well as our technology platforms, QIC benefits from a variety of different revenue streams that position us well to weather the current business environment of unstable growth, high inflation and volatile capital markets. We have reduced our exposure to severe risks in global markets and instead increased our focus in the more predictable retail markets in our region. In addition, our high level of automation and digitalisation has proved invaluable in strengthening our position with our clients during the pandemic and beyond. QIC Group continues to help further diversify the Qatari economy and shape the future of the insurance industry in the MENA region.”
Produced solid and dependable results amid unprecedented uncertainity
Mr. Salem Khalaf Al Mannai, Group Chief Executive Officer, said “In H1 2022, QIC’s international operations – Qatar Re, Antares, QIC Europe Limited (QEL) and the Gibraltar based carriers – which account for approximately 73% of the Group’s total GWP, achieved a premium volume of QAR 4.6 billion. The performance of the Group’s international operations profited from rate hardening and tighter conditions due to prior year loss experience, a rising interest rate environment and growing uncertainties amid accelerating inflation. However, reinsurance capacity remained sufficient although global retro and alternative capital markets hardened”.
He further added, “Our domestic and MENA operations, which are dominated by our advanced personal lines business, turned in yet another increase in GWP to QAR 1.7 billion, up by 13% from QAR 1.5 billion in H1 2021. As volume continued to expand, our operations in the Middle East continued to impress with strong underwriting profitability benefiting from our highly efficient and automated digital sales channels. QIC will have a renewed focus to further develop and grow the direct insurance vertical in the region by leveraging its position as a leader in digitalization of personal lines and other select line of business”.
QIC’s technical profit rose to QAR 276 million for the 1st half of 2022, from QAR 117 million for the prior year’s period. The Group’s strengthened technical performance reflecting the improving performance in QIC’s international business along with the continuing strong regional contributions.
Investment management continues its strong track record
While global investment environment continued to be challenging and volatile and took a toll to the investment performance QIC’s investment team performed impeccably in this challenging market environment, cementing its recognition as the leading investment house in the region. The Group’s net investment result amounted to QAR 500 million in H1 2022.
Continued efforts towards process efficiency and automation
QIC Group also continued its efforts to enhance process efficiencies through automation and digitization. In the 1st half of 2022 the Group further lowered its already healthy administrative expense ratio for its core operations to 5.7%, an improvement from the expense ratio of 7% in H1 2021. Overall, the Group achieved a strong consolidated net profit of QAR 401 million for H1 2022, as compared to QAR 351 million in the previous year’s period.
QIC launches the first comprehensive online portal & “Time For Change” campaign
QIC announced the launch of the first comprehensive online portal offering Qatar’s fastest digital solution for insurance policy purchase and renewal. Commenting on the launch of the new portal, Al Mannai, said: “We are excited to launch the first and fastest all-inclusive insurance portal in Qatar and to be the only insurance company in the country that enables its customers to purchase insurance policies in just 2 minutes. The new online platform called “qic.online” is revolutionary on all levels and certainly another important step in our journey towards a complete digitalisation of all our insurance products and services.”
QIC also launched a successful “Time For Change” campaign to inspire the Qatari community to contribute to the country’s future. The rebranding campaign highlights the values of synergy, mutuality and forward movement, which together form the essence of QIC in developing and introducing innovative insurance solutions that best meet the changing needs of our policyholders.
In addition, as part of our strategy to expand our presence in the direct insurance market of the Gulf Cooperation Council (GCC), QIC is exploring a merger with Vision Insurance SAOG through its subsidiary Oman Qatar Insurance. The merger is subject to the approval of the respective boards of directors, shareholders and stakeholders, satisfactory due diligence and the necessary regulatory approvals and the signing of legally binding agreements.
Renewed holistic approach on ESG
QIC fully supports Qatar’s goal to reduce the country’s greenhouse gas emissions by 25% by 2030. To this end, QIC has developed an Environmental, Social and Governance (ESG) framework, which the Board unanimously approved. QIC has developed a long-term ESG strategy to support Qatar’s ESG commitments and aims to incorporate ESG guidelines into its underwriting and asset management philosophy. In addition, an ESG and Sustainability Committee has been established to ensure that group-wide efforts are focused and channelled to achieve the set goals.
InsurTech MENA Summit 2022
QIC Group levereged its strong regional and international influence and held the InsurTech MENA Sumit 2022, a first of its kind hybrid event in the region. Through such initiatives QIC Group proves its commitment to reshaping the digital insurance landscape by building new digital ventures and strategically investing in high potential early-stage startups. “InsurTech MENA Summit 2022, provided insurance companies, tech players and government entities both, regionally and globally, a platform and an opportunity to expand their digital business into new markets. Said Al Manni. “QIC Group’s focus will remain in enhancing sharegolder value by accomplishing a profitable, successful and socially and environmentally responsible global organisation, with its hear in Qatar”. Al Manni added.