QIC Group 9-month net profit jumps 445% to QAR 453M
Qatar Insurance Company (“QIC Group”, “QIC”), the leading insurer in Qatar and the Middle East North Africa (MENA) region, has reported Net Profits of QAR 453M for the first nine months of 2023, rising 445% 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: “Amidst macroeconomic and geopolitical challenges, QIC has continued to perform successfully, which is reflected in the bottom-line results for Q3 2023. Profitability has continued to increase company-wide, with results outperforming both H1 2023 and Q3 2022, with substantial growth has been experienced in our core business activities in MENA. The company has strengthened its position despite sector challenges tied to international unrest and inflation by continuing to reduce its activity in low-margin and high volatility markets.
We continue to pride ourselves on what establishes us as insurance leaders in the region, which is our outstanding operational efficiency and central sustainable initiatives. As we enter Q4 2023, QIC is dedicated to supplying cutting-edge, innovative, and stable insurance products across several geographical markets, as well as continuing to provide first-class customer service.”
Mr. Salem Khalaf Al Mannai, Group Chief Executive Officer, stated: “Q3 2023 has marked a continuation of the strategy put in place to ensure QIC would carry on expanding its primary insurance business, as well as improving its already exceptional operational efficiency. Regarding risk mitigation in what is a challenging global climate, the company has continued to withdraw from low margin and volatile markets to ensure the business remains stable. This strategy has resulted in considerable success, demonstrating its viability with 14% growth in Domestic and MENA Operations Gross Written Premiums to QAR 2.7Bn in the first 9 months of 2023, compared to QAR 2.4Bn for the same period last year. Considering this, we maintain a positive outlook for the remaining quarter of 2023. In the months coming and beyond, we remain committed to expanding our direct insurance offer in the region and making significant advancements in process efficiencies and automation.” Al Mannai also went on to say that “we also remain committed to Qatar’s aim to reduce its greenhouse emissions by 25 % by 2030, which is part of a sustainability philosophy that we view as vital to our company. QIC has set out a long-term Environment, Social and Governance (ESG) strategy to support Qatar’s commitments and has formed an ESG & Sustainability Committee to ensure efforts within this framework are group wide.”
While much of 2023 has been affected by global economic and financial uncertainty, recently there have been more encouraging signs. US and UK interest rates stabilized in September and persistent but slowing inflation marked a notable improvement compared to the same period last year.
With regards to QIC’s key business lines and areas of operation, probably the most challenging has been the UK motor insurance market, which is still feeling the effects of inflation, as well as pressures regarding energy prices and Brexit-influenced supply chain difficulties, and we expect to have less exposure in this sector.
QIC also continued to execute on its strategy of moving away from high-volatile and high-risk markets to strengthen its position in a time of rising capital costs by halting underwriting of loss-making and low-margin business lines.
In these market conditions, QIC reported Gross written premiums of QAR 7Bn for the first nine months of 2023, compared to QAR 7.8Bn for the same period in 2022.
In addition, QIC’s performance in the MENA region has been exceptional – embodying the continued growth we expect to see in the region over the coming months and years.
Global financial markets battled against difficulties in early 2023, primarily tied to the global banking crisis. The situation has improved and Q3 has marked a slow, albeit gradual return to stability. Central banks have had some success in fighting persisting inflation, and while interest rates remain high, the rate of rises has slowed. Geopolitical challenges have also left their mark on the global economy in the form of inflation and oil prices and will likely continue to do so for the remainder of this year.
Despite the challenges of the market environment, QIC reported net investment results amounting to QAR 681M during first nine months of 2023. The consolidated net profit was QAR 453M during the first nine months of 2023.
Sustainability and ESG
Sustainability and ESG remain core pillars of QIC Group’s operations, both on a regional and international scale. Regionally, QIC is committed to supporting Qatar’s endeavor to reduce the country’s greenhouse emissions by 25 percent by 2030. Recent initiatives in line with this project have included the development of our board approved ESG framework, a long-term ESG strategy in line with the government’s policies, and the recently established ESG & Sustainability Committee to ensure goals are met group wide.
Internationally, earlier this year QIC became the first Middle Eastern insurer to sign the United Nations Environment Programme-Finance Initiative’s ‘Principles for Sustainable Insurance’ (UNEP-FI PSI), and in doing so became part of a global network of insurers committed to adopting ESG principles in their supply chain and operations.
In September, QIC rolled out a new awareness campaign, “Confidence at every turn”, providing confidence-boosting materials to users. As part of its commitment to promoting a stress-free life and instilling confidence in the Qatari community, QIC provided users with exclusive content, including educative videos, informative articles, and practical guides to boosting confidence.
QIC’s services continue to be recognized through respected industry awards.
In October, QIC received three prestigious awards at Global Brands Magazine Awards 2023, being awarded “Best Insurance Website in The Middle East” and “Best Insurance Website in Qatar”, as well as being named “Best Digital Insurance Company in Qatar”.
Furthermore, QIC was honored at the graduation ceremony of the eighth cohort of the “Kawader Malia” program, for its outstanding contribution towards supporting the development of young Qataris and its commitment to shaping the country’s future workforce.
About Qatar Insurance Company
Qatar Insurance Company is a publicly listed insurer with a consistent performance history over 58 years and a global underwriting footprint. Founded in 1964, QIC was the first domestic insurance company in the State of Qatar. Today, QIC is the market leader in Qatar and a dominant insurer in the GCC and MENA regions. QIC is the largest insurance company in the MENA region by total assets and is listed on the Qatar Stock Exchange.