QIC Group approaches 2020 with ‘cautious optimism’

QIC Group is “slightly more bullish” about its performance for the financial year 2020 despite the expected global financial volatility and US election year.

QIC Group is the leading insurance and reinsurance services provider in the Middle East and North Africa (Mena) region, which is working on its strategic plan to become one of the leading insurers in the world.

The company is cautiously optimistic for its profitability for the current year, and banks upon Qatar’s investments in the mega projects, public spending, as well as the economic diversification in Mena region. QIC is also optimistic about growth in international trade as the Phase One of the trade deal between the US and China is being regarded as a major success. However, the Group’s board members also cautioned about other difficult issues which remain unresolved.

“These (issues) could weigh on the global economy and capital markets. Unconventional monetary policy and negative yields are here to stay, as central banks will continue their highly accommodative policy stance. However, Qatar and the Mena region, are expected to benefit from the economic diversification and reduced dependence on hydrocarbon exports,” Abdulla bin Khalifa Al Attiya, Deputy-Chairman of the Board of Directors of QIC Group, told the shareholders while presiding over the Company’s Annual General Meeting (AGM), yesterday.

Highlighting Qatar’s solid macroeconomic fundamentals and the massive public spending on big projects and huge investments on new projects, Al Attiya added: “Qatar is poised to benefit from the ongoing investments for the upcoming FIFA World Cup 2022 and continued population growth.”

During the AGM, the shareholders of QIC Group approved the Board’s recommended distribution of cash dividend payout of 15 percent for the year ended December 31, 2019.

In addition to this, they approved QIC Group’s consolidated financial statements, Independent Auditor’s Report, Board of Directors and Corporate Governance reports for the year 2019. During the AGM, the shareholders also finalised the appointment of the auditors for the year 2020. The members of the Board of Directors for the period 2020 – 2022 were also elected during the meeting.

Where the following members in the category of non-independent member won by acclamation: Sheikh Khalid bin Mohammed bin Ali Al Thani, Sheikh Saoud bin Khalid bin Hamad Al Thani, Hussein Ibrahim Al Fardan (representing Al-Fardan Investment Company) and Sheikh Faisal bin Thani bin Faisal Al Thani (representing Broog Trading Company), Ali Youssef Hussein Kamal (representing Al Kamal International Group), Jassim Mohammed Ibrahim Jaidah (representing Al Jaidah Motors and Trading Company), Sheikh Jassim bin Hamad bin Jassim Jabor Al Thani (representing Al-Mirqab Capital Company), and Khalaf Ahmed Al Mannai - by appointment of the General Retirement and Social pension Authority (Social Pension Fund). While Abdullah bin Khalifa Al Attiyah, Sheikh Abdul Rahman bin Saud bin Fahd Al Thani and Sheikh Hamad bin Faisal bin Thani Al Thani won the membership for the independent category, and Hassan bin Hassan Al Mulla Al Jafiri came as a standby member.

Group President Khalifa Abdulla Turki Al Subaey, said: “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: “For 2020, 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 our shareholders, our trusted business partners and customers while supporting development of the sector and the economy.”

The Group had reported a stable underwriting results and strong investment income which translated into a consolidated net profit of QR671m for 2019 against QR664m for the previous year. In 2019, QIC recorded growth in gross written premiums (GWP) of 2 percent to QR12.8bn compared to QR12.6bn for the same period of the previous year (2018).