Mena region’s leading insurer Qatar Insurance Company (QIC) reported robust results with a net profit of QR205mn for the first quarter of 2021 compared to a loss of QR186mn in Q1, 2020.
Gross premium volume remained stable at QR3.2bn in the first quarter of the year.
QIC posted an underwriting income of QR157mn for the first quarter, compared to an underwriting loss of QR69mn in Q1, 2020, an increase of 329%.
“The Group’s robust performance – while the world’s insurance markets are still confronted with the impact from the Covid-19 pandemic on business volume, claims and day-to-day operations – is testimony of QIC’s successful execution of its strategic plan to de-risk its international operations, strengthen the more predictable frequency business and drive forward the digitisation of the Group’s domestic and Mena operations” QIC said yesterday.
In Q1, 2021, QIC’s international operations – Qatar Re, Antares, QIC Europe Limited (QEL) and the Gibraltar-based carriers, which account for approximately 76% of the Group’s total GWP, achieved a premium volume of QR2.4bn.
The performance of the Group’s international operations profited from a hardening of rates and conditions in the international reinsurance market and a lower claims experience in the Group’s UK motor business during the lock-down. The international operations were also affected by the exceptionally severe cold spell in the US.
QIC once again saw a “strong” performance of its primary insurance business in its domestic and Mena operations, which continued to grow to GWP of QR772mn, an increase of 16% from QR666mn in Q1, 2020.
In Q1, 2021, QIC’s investment team again continued to deliver strong performance and reported a net investment income of QR266mn compared to QR30mn for the 1st quarter of 2020.
The Group also continued to benefit from its steady efforts to further strengthen its operational efficiency through automation and digitisation with a healthy administrative expense ratio of 8%.
Overall, the Group achieved a strong consolidated net profit of QR205mn for Q1, 2021 compared to a loss of QR186mn in the previous year’s period.
Recently, QIC was ranked the “fifth most valuable brand locally” by the global agency Brand Finance with the value of its trademark amounting to $535mn.
Brand Finance, specialised in evaluating brands, issued its list of the 10 strongest brands in the Qatari market for the year 2021, which are set on strict criteria in valuation of brands such as the strength of assets, global reputation, market share and profitability with the volume of operations, and geographical spread, as these factors affect the strength of any financial institution and how each of its clients, shareholders, and dealers perceive it in the markets in which it operates.
The evaluation mechanism is to obtain the financial data and revenues of the brand, and then the performance levels are evaluated according to three expectations periods that include: financial results and a five-year forecast period and future growth based on a mixture of growth expectations. The rating measures the strength of the brand on a scale of zero To 100. Also, Qatar Insurance topped the list of the largest five public insurance companies in the Arab countries in terms of assets, according to Forbes Middle East.
“QIC Group continues to deliver an impressive performance, although global insurance markets are faced with the gravest economic and health crisis in modern history,” Khalifa Abdulla Turki al-Subaey, Group president, QIC Group stated.
“We were among the first insurers to transition our personal lines products to an online offering,” al-Subaey added.