QIC Group reports net profit growth in first half of 2024

QIC Group reports net profit growth in first half of 2024 | Insurance Business Asia

Insurance News

QIC Group reports net profit growth in first half of 2024

Balanced portfolio has helped it navigate several major loss events

Insurance News

By
Kenneth Araullo

Qatar Insurance Company (QIC Group), an insurer in Qatar and the MENA region, has reported a net profit of QAR 360 million for the first half of 2024, marking an 11% increase from QAR 325 million during the same period in 2023.

The global macroeconomic environment showed some signs of stabilisation in the first half of 2024, with inflation receding in many regions. Despite ongoing catastrophic events impacting global insurance markets, QIC’s balanced portfolio has enabled the company to navigate these challenges.

During this period, the UAE experienced multiple floods, leading to significant insured motor and property losses, primarily absorbed by the international reinsurance industry. These recent losses may lead to a hardening of market rates as insurers and reinsurers adjust their pricing to reflect heightened risks.

Additionally, the collapse of the Francis Scott Key Bridge in Baltimore, USA, resulted in an estimated $4 billion marine insurance loss, one of the largest in history.

Amidst global economic uncertainty and geopolitical risks, QIC has maintained its focus on profitable markets within Qatar and the MENA region, while exiting loss-making and low-margin international businesses.

This strategy is reflected in a 44% increase in gross written premiums (GWP) from domestic and MENA operations in the first half of 2024 compared to the same period in the previous year. QIC’s portfolio is now balanced, with 57% of its insurance business generated by MENA entities and 43% by international operations.

QIC has recently prioritised growth in its personal lines, health insurance, and marine & energy insurance divisions. The company has reduced its exposure to the international motor insurance market, particularly in the UK, due to supply chain challenges related to Brexit.

However, it continues to focus on its motor insurance business in the MENA region. QIC’s international operations, which have been streamlined in recent years, are now showing healthy combined ratios.

The group reported insurance service results of QAR 339 million for the first half of 2024, compared to QAR 236 million in the first half of 2023.

QIC reported investment income of QAR 465 million for the first half of 2024, compared to QAR 501 million in the same period last year, with a return on investment of 5%. The composition of QIC’s investment portfolio remained stable and consistent with the previous year.

Sheikh Hamad bin Faisal Al Thani (pictured above), chairman of QIC Group, remarked that the company’s strong financial results in the first half of 2024 reflect the momentum built in the initial months of the year.

He emphasised the group’s focus on expanding its presence in domestic and regional markets, supported by continued investment in digital services.

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