QIC’s first quarter net profit jumps 210% to QR205 million

Tribune News Network Doha Qatar Insurance Company (QIC), the leading insurer in Qatar and the Middle East North African (MENA) region, reported robust resu...

Tribune News NetworkDohaQatar Insurance Company (QIC), the leading insurer in Qatar and the Middle East North African (MENA) region, reported robust results with a net profit of QR205 million for the first quarter of 2021 as compared to a loss of QR186 million in the previous year’s period. Gross premium volume remained stable at QR3.2 billion in the first quarter of 2021.QIC posted an underwriting income of QR157 million for the first quarter of 2021, compared to an underwriting loss of QR69 million for the previous year’s period, an increase by 329 percent. 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 digitization of the Group’s domestic and MENA operations. In Q1 2021, QIC’s international operations – Qatar Re, Antares, QIC Europe Limited (QEL) and the Gibraltar based carriers – which account for approximately 76 percent of the Group’s total GWP, achieved a premium volume of QR 2.4 billion. 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 USA.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 QR772 million, an increase by 16 percent from QR666 million in Q1 2020.In Q1 2021, QIC’s investment team again continued to deliver strong performance and reported a net investment income of QR266 million, as compared to QR30 million for the first quarter of 2020. The QIC Group also continued to benefit from its steady efforts to further strengthen its operational efficiency through automation and digitization with a healthy administrative expense ratio of 8 percent. Overall, the Group achieved a strong consolidated net profit of QR205 million for Q1 2021, as compared to a loss of QR186 million in the previous year’s period.Recently, Qatar Insurance was ranked the fifth most valuable brand locally by the global agency Brand Finance with the value of its trademark amounting to USD 535 million. Brand Finance, specialized 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 5 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 Al Subaey, Group president of QIC Group stated. “We were among the first insurers to transition our personal lines products to an online offering.”