Doha, 27 February, 2019:
Despite being a challenging year, in 2018 Qatar Insurance, the leading insurance Group recorded strong operational performance, coupled with robust premium growth, taking Gross Written Premium (GWP) to QAR 12.6 billion, up by 8% vis-à-vis the same period in 2017. The underwriting results for the Group for the year 2018 amounted to QAR 576 million. QIC Group’s consolidated net profit for the full year 2018 came in at QAR 664 million.
The Annual General Meeting that was held yesterday at the Four Seasons Hotel was chaired by Abdulla bin Khalifa Al-Attiya, Deputy Chairman of the Board of Directors. The shareholders discussed the Group’s annual performance and endorsed the recommended distribution of cash dividend payout of 15% for the year ended 31st December 2018. Approval was also granted for QIC Group’s consolidated financial statements, Independent Auditor’s Report, Board of Directors and Corporate Governance reports for 2018. Further, the appointment of the auditors for 2019 was also finalized during the AGM.
The Extraordinary General Assembly also approved the new private issuance of 7,704,258 shares to be fully subscribed only by the minority shareholders of the subsidiary “QIC Capital”, registered in the QFC, to purchase their shares in order for Qatar Insurance Company to have 100% interest in the company. This restructure will achieve effective and efficient management of the Group’s international operations. The Extraordinary General Assembly also approved the amendment of the Company's Articles of Association to comply with the decision of the Qatar Financial Markets Authority to change the nominal value of the share to be Qatar Riyal one (QAR 1) and to amend the minimum number of shares required for membership in the Board of Directors to be two million shares instead of two hundred thousand shares .
QIC Group’s consistent performance lies in its robust underwriting prowess, global business diversification and strong risk-adjusted capitalization. The Group’s consistent approach of applying global standards and best practices in its assessment of the current and future solvency and capital adequacy requirements ensured that it remained well positioned and capitalized amidst the pressures of global market conditions.
Key contributors to the reported growth were the Group’s dedicated global reinsurance and specialty insurance subsidiaries as well as the life and medical segments of the business emanating from the Middle East. The international carriers namely Qatar Re, Antares, QIC Europe Ltd. (QEL) and Markerstudy now account for approximately 77% of the Group’s total GWP.
2018 was a challenging year due to the effects of a number of hurricanes and typhoons that QIC was exposed to through its international subsidiaries - Qatar Re and Antares’. In addition to this, QIC was also impacted by the unprecedented Californian wildfires and a major marine loss in Germany (Lürssen shipyard).
QIC Group’s net investment income came in at QAR 780 million. This result can be attributed to QIC’s prudent principle of managing the Group’s investment portfolio and pursuing an effective cost discipline. In fact last year QIC was conferred many prestigious awards and titles, including “Top Investment House” and The QIC GCC Equity Fund, which won the award for “The Best GCC Fund Performance in 2017.”
For 2019, QIC Group will continue to focus on its drive for international expansion on the back of QIC Global, a newly formed brand which consolidates QIC Group’s international entities namely Qatar Re, Antares, QEL and the Gibraltar-based insurers acquired from Markerstudy. In fact the Group’s continuing diversification, both geographically and in terms of products and services, positively contributes to lowering the risk and volatility of risks it underwrites. QIC Group aims to continue its expansion through organic and inorganic growth and progress towards its vision of becoming a top-50 global insurer by 2030.
As of 31 December 2018, QIC Group’s shareholders’ equity stood at QAR 7.7 billion.
Commenting on the Group’s financial performance in 2018, Group President and CEO Mr. Khalifa Abdulla Turki Al Subaey commented: “Despite global repercussion, which has massively influenced major sectors in the region, QIC Group has witnessed strong business momentum and has performed in line with our expectations.”
He added, “The overall performance in 2018 highlights the Group’s well thought out strategy and its successful execution. For 2019 our outlook remains cautiously positive. We shall focus on consolidation and enhance our operational efficiency. With renewed focus on achieving bottom line driven growth, we will continue to maximize value for shareholders, our trusted business partners and customers while supporting development of the sector and the economy.”