Commenting on QIC ’ sulfur stable fiscal performance for 2019, Mr. Khalifa Abdulla Turki Al Subaey, Group President of QIC Group said : “ In 2019, QIC Group was peculiarly please with the strong and profitable premium growth that we enjoyed in our core markets in the MENA region. At the same clock time the consolidation of our international business ; Qatar Re, Antares, QIC Europe ( QEL ) and the Gibraltar based insurance companies, is progressing on target. These developments reflect the success of our efforts to refocus our cover capacity on risks with a more friendly risk-return proportion, namely, our short-tail, personal lines commercial enterprise. furthermore, in the MENA region, we are spearheading the digitization of our diligence, thereby increasing our operational efficiency while strengthening our customer relationships. ”
Contents
- 1 Overview of key financial results (year ended, December 31)
- 2 Financial performance
- 3 Expanding leadership in domestic and MENA markets
- 4 Focus on less capital-intensive risks and a more reliable underwriting performance
- 5 Investment management continues its strong track record
- 6 Strong ERM framework
- 7 Commitment to advancing national talent to top positions
- 8 QIC’s operations producing stable returns
Overview of key financial results (year ended, December 31)
| Figures in USD million | 9M 2019 | 9M 2018 |
| Gross written premiums | 3,528 | 3,463 |
| Net written premiums | 3,049 | 2,970 |
| Net underwriting result* | 98 | 158 |
| Net investment and other income | 298 | 237 |
| Consolidated net profit | 184 | 182 |
| Return on Equity | 8.0% | 8.2% |
| Non-life combined ratio | 103.3% | 101.3% |
| Earnings per Share (in USD); 2018 restated | 0.048 | 0.048 |
| Total assets | 10,828 | 10,760 |
| Market capitalization | 2,835 | 3,145 |
| Shareholders’ equity | 2,322 | 2,122 |
*Net underwriting result is defined as net earned premium reduced by the sum of (i) gross claims paid, (ii) reinsurance recoveries, (iii) movement in outstanding claims, (iv) net commission expense, and (v) other insurance income.
Financial performance
Continued consolidation and integration of QIC’s international operations
In 2019, QIC recorded emergence in gross written premiums ( GWP ) of 2 % to USD 3.53 billion compared to USD 3.46 billion for the same period of the previous class. QIC ’ s external business posted gross written premiums of USD 2.70 billion in 2019, compared to USD 2.67 billion in 2018. QIC continued to consolidate further its position as a ball-shaped indemnity and reinsurance musician with a local bearing in 13 geographies across the Middle East, Europe, the Americas and Asia. QIC ’ s international occupation, namely, Antares, Qatar Re, QIC Europe Limited ( QEL ) and the Gibraltar based insurers continued the consolidation of its operations under QIC Global and now account for 76 % of the Group ’ s total agio base. Qatar Re now ranks 26th in A.M. Best ’ s rankings of the World ’ s Top-50 Largest Reinsurance Groups, up from 35th rank in 2016 .
Expanding leadership in domestic and MENA markets
QIC Group ’ s MENA operations reported gross written premiums of USD 832 million in 2019 compared to USD 796 million in 2018 and continued to benefit from stronger economic growth and diversification in the area. With its retail operations QIC Insured and the Group ’ s Life and Medical policy subsidiary company, QLM Life & Medical, QIC is spearheading the digital transformation of the diligence by introducing innovative tech-enabled products and integrating car learning and AI into its underwrite processes. As a testament to its success in initiation, in June 2019, QIC won the prestigious “ Best Digital Transformation in Insurance Award ”, recognizing its best-in-class digital technologies both in the retail and in aesculapian indemnity space. In January 2019, QIC was once again recognized as the “ Best Motor Insurance Company MENA ” region at the Global Banking & Finance Review awards .
Focus on less capital-intensive risks and a more reliable underwriting performance
The Group ’ s net cover leave came in at USD 98 million, as compared to USD 158 million in 2018. This reflects the prudent reserve strengthening policy applied across the external business, the impact of increase in reserves for our UK motor business in response to the foster revision of the Ogden deduction rate by the UK Government, and the impact of natural catastrophe losses experienced in the fall of 2019 due to Typhoons Faxai and Hagibis that caused landfall in Japan. On the other bridge player, the send business in Qatar and MENA continued to perform powerfully, benefiting from enhanced efficiencies through the wide-eyed use of digital technologies. Based on the above, QIC reported a non-life compound ratio of 103.3 % for 2019 ( 2018:101.3 % ) .
QIC ’ s stable cover performance reflects the overall composing of its book of clientele. Besides, already in 2018 the caller started steadily reallocating its cover capacity to lower badness but higher frequency risks, which are less capital intensive and therefore provide a more static and predictable recurrence on the induct capital. QIC will continue this strategic realignment of its portfolio, particularly benefiting from the strong performance in short-tailed personal lines occupation .
Investment management continues its strong track record
In 2019, the investment team of QIC Group once again proved its heart. Despite intensify ball-shaped market volatility due to ongoing deal wars and geopolitical turbulences, our investment team performed exceptionally well, holding its track read as one of the best asset managers in the Middle East region.
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QIC Group achieved an excellent total investment income of USD 298 million, as compared to USD 237 million in 2018. On a year-to-year basis, the return on investment, excluding one-off gains, came in at 4.4 %, compared with 4.3 % for 2018. The team ’ randomness great investing performance is built on careful diversification of the portfolio across geographies and investment classes .
In 2019, QIC ’ mho investment team was recognized as the “ Top Investment House ” in a review conducted by The Asset magazine in collaboration with Benchmark Research. In 2019, QIC Group besides received authorization to establish Epicure Investment Management Company regulated by Qatar Financial Centre ( QFC ). Epicure Investment Management has been set-up to carry out investment occupation consultancy, building on QIC ’ second recognition as a leading investment director .
Strong ERM framework
QIC Group is a frontrunner in Enterprise Risk Management and bodied complaisance polish. Its risk-based capital sufficiency ranks among the strongest levels, benefiting from the company ’ s large capital base. QIC has been accredited for its exceptionally potent fiscal tractability proven by its ability to successfully entree capital markets and generate organic growth. QIC endlessly improves its hazard management model, which is commensurate with the complexity of its risk portfolio. With the full consolidation of QIC ’ s external business into its group-wide risk management framework, the Group further drives forward its centralize enterprise Risk Management on a ball-shaped scale .
Commitment to advancing national talent to top positions
QIC is committed to further its efforts in achieving Qatarization, in accordance with the country ’ s efforts to realizing the Qatar National Vision ( QNV ) 2030. QIC has a track record of empowering younger qatari talents into demanding corporate roles and administrator management positions.
As part of a smooth transition and succession planning at the executive management level, the Board approved the recommendation of Mr. Khalifa A. Al Subaey, the Group President & CEO and appointed Mr. Salem Khalaf Al Mannai as the Group CEO of Qatar Insurance Group. Mr. Salem Khalaf Al Mannai has been with QIC since 2001 and has been implemental in positioning QIC Group as the digitally transformed policy company in the region. Mr. Khalifa A. Al Subaey will continue in his capacity as Group President of Qatar Insurance Group .
QIC’s operations producing stable returns
QIC Group maintains a tilt and effective organization. In 2019, the Group ’ s continued attempt towards further streamlining and automating of its processes resulted in a healthy operational expense ratio of 6.5 % .
In total, the Group ’ s cover income together with the potent investment income translated into a consolidate net profit for 2019 of USD 184 million, compared with USD 182 million for the previous year. As of 31 December 2019, QIC Group ’ s shareholders ’ equity stood at USD 2.32 billion, compared to USD 2.12 billion in 2018 .