QIC Group reports GWP of QR9.8bn for 2022

Doha: Qatar Insurance Company (QIC Group, QIC), the leading insurer in Qatar and the Middle East North African (MENA) region, announced its financial results for the year ended 31 December 2022. Following a meeting of the board of Directors yesterday 21st of February 2023, which was presided over by Khalifa Abdulla Turki Al Subaey, Chairman & Managing Director of QIC Group, the Board approved the financial results. The Group reports gross written premiums (GWP) of QR9.8bn for 2022. 

However underwriting results from our discontinued business of international operations were severely affected which resulted in the Group reporting a net loss of QR637m compared to a net profit of QR630m for the previous year.

Commenting on QIC’s financial performance in 2022, Khalifa Abdulla Turki Al Subaey, Chairman and Managing Director stated: “The year 2022 has been characterized by extremely turbulent market conditions as the complex combination of macro-economic, geopolitical and severe natural catastrophes created a yet unseen mix of headwinds for insurers. 

Within this environment, QIC proved its mettle and further expanded its profitable domestic market business in Qatar and the MENA region. This reflects the ongoing, successful implementation of the group’s strategic plan to de-risk our international operations, expand our low-volatility activities and diversify the business portfolio, as well as cementing the Company’s lead position as a financially strong, adaptable, and secure insurance partner, with a robust capital base for its stakeholders.” Commenting on the Group’s losses, Salem Khalaf Al-Mannai, Chief Executive Officer of Qatar Insurance Group, added: “Global financial markets have been affected by the Russian-Ukrainian war, rising interest rates by the US Federal Reserve and central banks around the world and increased volatility. 

The inflation rate in the UK reached 10.5 percent in December 2022, the highest rate in 40 years, which affects the cost of compensation and leads to an increase in reserves for the short and medium term. Also, the UK motor insurance market, which accounts for nearly 40 percent of the Group’s business (through Markerstudy, the Gibraltar based entities), has also worsened, with a combined cost ratio of 110 percent due to inflation, rising prices for spare parts, labour and energy, and the UK’s withdrawal from the European Union (Brexit). In addition, premium rates have reached a low level as a result of the intensity of competition between insurance companies to maintain market share.

Currently, negotiations are underway to sell the Gibraltar based entities to a reputable institutional buyer, which is subject to approval by the regulatory authorities.” Financial performance Globally, 2022 was a year challenged by unprecedented inflation, geopolitical tensions, supply chain disruptions, frequent and severe natural catastrophe events linked to climate change and a tepid global economic recovery, as the COVID-19 pandemic abated more slowly than was hoped. Inflation and interest rates rose rapidly due to the release of pent-up consumer demand and soaring energy prices. 

In 2022, QIC’s international operations – Qatar Re, Antares and QIC Europe Limited (QEL) – accounted for approximately 71 percent of the Company’s total GWP, contributing gross written premiums of QR7 bn to QIC Group’s top line. The global insurance business however remained highly volatile during the year, where unseen combination of major headwinds challenged the insurance industry arising from unprecedented inflation and geopolitical tensions. 

Inflation which peaked record levels in recent history, drove the claims ratio for the discontinued and legacy business of the Group, which had a direct impact to the underwriting income. Geopolitical tensions, in particular the Russian war on Ukraine, and the outflow from the COVID-19 pandemic continue to drive supply-chain disruptions and energy prices.