Doha, Qatar: Qatar Insurance Company (“QIC Group”, “QIC”), the leading insurer in Qatar and the Middle East North Africa (MENA) region, has reported Net Profits of QR325m for the first half of 2023, rising 181% from the same period in 2022. Following a meeting of the Board of Directors yesterday, which was presided by Sheikh Hamad bin Faisal bin Thani Jasim Al Thani, Chairman of QIC Group, the Board approved the financial results.
Sheikh Hamad bin Faisal Al Thani, Chairman of QIC Group, stated: “QIC’s bottom-line results demonstrate the success with which the company has navigated a challenging macroeconomic environment in the first half of 2023. In addition to broad increases in net profitability, we’ve seen double digit growth in our core MENA business activities. Though market challenges persist due to inflation and geopolitical unrest, the company has taken decisive steps to minimise its exposure to high severity and volatile international risks. We’re proud of QIC’s distinguishing brand attributes, including its exceptional digital capabilities and operational efficiency. As we look forward to the rest of the year, we are committed to providing market-leading levels of customer service and innovative, reliable insurance products across the Middle East, Europe, and international insurance markets.”
“Throughout the first half of this year, QIC has maintained its strategic focus on expanding its primary insurance business, mainly the profitable direct-line insurance markets throughout the GCC”, said Salem Khalaf Al Mannai, Group Chief Executive Officer.
“Meanwhile, the company has mitigated risks by exiting high severity, low margin, and loss-making international markets. This strategy’s success has been demonstrated by 14% growth in Domestic and MENA Operations Gross Written Premiums to QR1.9bn in the first half of 2023, compared to QR1.7bn for the same period in 2022. As we look ahead to the rest of the year and beyond, we remain committed to growing our direct insurance vertical in the region.
QIC’s operating priorities have underpinned the strength of its performance. By focusing on process efficiencies and automation, the company has further improved its already outstanding operational efficiency in the first half of this year. Our emphasis on digital acceleration led to the recent roll out of the fastest online solution for mandatory visitors’ insurance in Qatar, as well as a multitude of new features on QIC’s award-winning car insurance website. We’ve also established our position as a leader in the region’s burgeoning insurtech industry, as illustrated by the success of the second edition of our annual insurtech summit, ‘MENA Insurtech Rising’ – which brought together 88 C-level executives to share insights and explore partnerships. QIC is committed to supporting Qatar’s endeavour to reduce the country’s greenhouse gas emissions by 25 percent by 2030. This year we became the first insurer in the Middle East to sign the UN’s Principles for Sustainable Insurance, which builds upon our Board-approved ESG framework, Al Mannai added.
Chairman of QIC Group, Sheikh Hamad bin Faisal Al Thani (left) and Group Chief Executive Officer, Salem Khalaf Al Mannai.
The macroeconomic and geopolitical landscapes have remained challenging in H1 2023 but show recent signs of improvement.
Interest rate hikes have slowed as inflationary trajectories ease, global labour markets have begun to normalise, and global shipping costs have decreased to reach almost pre-pandemic levels.
Insurance markets also continued to harden in select lines of business. However, inflation in the UK and the effects of Brexit have had some effect on the UK motor insurance market.
In these market conditions, QIC reported Gross written premiums of QR5.5bn for H1 in 2023, compared to QR6.3bn in H1 of 2022. QIC also continued its strategic path of focusing on less volatile and low-severity international commercial risks, at a time of rising capital costs.
The company has stopped underwriting its loss-making insurance business and has exited its low-margin business lines.
In addition, the Group’s international operations, Antares Global – which includes the brands Antares Re, Antares Lloyds Syndicate and QIC Europe Ltd – has performed exceptionally well, delivering a premium volume of QR3.6bn, amid rate hardening and tightening market conditions.
Global financial markets faced significant headwinds in H1 2023 – including volatility due to concerns over the global banking crisis – while government bond markets have moved from pricing in rate hikes to discounting sizeable rate cuts in some markets. Inflation is persistent – though slowing – in mature markets, meaning that interest rate hikes by central banks have continued, albeit at a gentler pace.
Despite this volatile market environment, QIC reported net investment results of QR460m for H1 2023, compared to QR475m for H1 2022. The annualized return on investment came in at 5.4% compared to 4.8% last year.
One of QIC’s key priorities this year has been to enhance its digital offerings and consolidate its position as a leader in the digitalization of personal lines insurance.
This has enabled customers to manage their insurance requirements with unprecedented speed – resulting in record levels of online services penetration and customer reliance on digital channels, from onboarding to claims.
The company recently introduced a fully digital Mandatory Visitors’ Health Insurance product. This is the fastest and most convenient product of its kind in Qatar, enabling thousands of international visitors to obtain insurance policies in less than two minutes. Several new features have also been launched on QIC’s award-winning car insurance website – including an Online Claims Management Service for customers to file and manage their motor claims, an Online Policy Upgrade service, and a Market Value Calculator to help customers better determine the market value of their vehicles.
Over a three-day event in May, QIC held the second edition of its annual MENA InsurTech Summit, under the theme “MENA Insurtech Rising”.
Bringing together 88 C-level insurers, startup founders, investors, and other key figures in the industry, the summit was held to foster learning and explore new partnerships – with a focus on sharing insights on the latest industry trends, innovation, investment, and digital transformation.
