Qatar Insurance Company (QIC) reported a net profit of US$106 million for the first half of 2018, with improved underwriting performance reflecting a portfolio shift to business with lower volatility.
According to a statement by the insurer, its gross written premiums rose by 5% year-on-year to US$1.8 billion. It also reported a combined ratio of 100.5% in the first half, a slight improvement from 101.5% in the same period last year. Excluding any prior-year reserve developments, QIC’s underlying combined ratio was at 98.8%, in line with the low-volatility nature of QIC’s book of business.
“QIC is making excellent progress in repositioning its international book towards areas of lower volatility,” said Khalifa Abdulla Turki Al Subaey, president and CEO of QIC Group. “The most recent global treaty renewals in April, June and July and the disappointing rate developments have confirmed our bearish view on the prospects of traditional low-frequency high-severity business. Our earlier decision to de-emphasize volatility has been proven right.”
“The group’s outlook for the remainder of the year is cautiously optimistic,” he continued. “Our exposure to the geopolitical situation in the Middle East and the vagaries of global re/insurance pricing is relatively moderate. QIC’s very strong risk-based capital adequacy, in combination with the scale and diversification of our business portfolio, will underpin the group’s resilience going forward.”
QIC recently ceased writing business from its Singapore office, following a 60% decline in net profits for 2017.
