Tribune News Network
Doha
Qatar Insurance Company reported net profit (including minority) of QAR 615 million for the year 2023, compared to a net loss of QAR 1,183 million for the previous year. Following a meeting of the Board of Directors yesterday, which was presided over by Sheikh Hamad bin Faisal bin Thani Jasim Al Thani, Chairman of QIC Group, the Board approved the financial results.
Commenting on QIC’s financial performance, Sheikh Hamad bin Faisal Al Thani, Chairman of QIC Group, stated: “The past 12 months have seen a key turnaround story at QIC. The company has continued to strengthen its position in profitable domestic market business in Qatar and the MENA region, with Gross Written Premiums growing 25% year-on-year. Meanwhile, the effectiveness of our deliberate strategy over the past few years to exit our loss making and low margin international business has been clear, demonstrated by the Group’s return to healthy net profitability.
While global macroeconomic headwinds persisted, particularly in early 2023, there were promising signs in the latter half of the year that inflation is easing, and interest rates have peaked. Having decisively cut our exposure to more volatile international risks, QIC is well positioned to take advantage of this improving economic environment in 2024 – and to extend our market-leading levels of customer service and reputation for digital innovation in both domestic and international insurance markets.
“QIC has moved confidently forward from a loss-making 2022 to a strong and stable 2023”, said Mr. Salem Khalaf Al Mannai, Group Chief Executive Officer. “The company is delighted to report Insurance Service results of QAR 747 million in 2023, rising from loss of QAR 465 million over the same period in 2022. Strikingly, we saw major growth in UAE and Oman operations mainly in medical and personal line segments. In particular, the UAE business – which underwrote over AED 1 billion over the course of 2023 – is expected to continue to exhibit robust growth. In addition, QIC’s MENA and international insurance operations have delivered buyout results, in line with the company’s strategic plan.
Furthermore, QIC reported a strong investment income of QAR 922 million for FY 2023, compared to QAR 828 million for the same period in 2022. The return on investment came in at 5.2% compared to 4.8% last year.
Our continued endeavor towards process efficiencies and automation showed strong results this year, as QIC further improved its already exceptional operational efficiency. Additionally, we continue to press ahead at the forefront of digital innovation in the region’s insurance sector. In 2023, QIC received industry-wide recognition for its digital insurance products, its online services and website, and its revolutionary Insurtech subsidiary, Anoud Tech. We’re also shaping the future of technology in the sector with our annual Insurtech summit, leading the discussion on how insurers can harness innovation and fresh thinking to respond to the needs of the modern customer.
For the full year of 2023, the Group reported net profits (excluding minority) of QAR 601 million for the year 2023, compared to a net loss of QAR 1,199 million for the previous year.
The Board of Directors proposed a cash dividend distribution of 10% for the year ended 2023.
The global macroeconomic environment showed some signs of improvement over the course of 2023 – particularly in the later months – though economic and financial uncertainties have persisted. Global labour markets began to normalize in the first half of the year, while high levels of concern about inflation as 2023 began have eased somewhat as the year progressed. This has resulted in the stabilization of interest rates in the US and UK – and the expectation that rates will begin to come down in 2024. However, insurance markets have continued to harden in select lines of business.
Perhaps the biggest challenge that faced QIC’s key areas of operation in 2023 has been the UK motor insurance market, which was adversely affected by supply chain difficulties influenced by Brexit. The company plans to reduce its exposure to this sector – reflecting a wider strategy of distancing itself from markets with higher volatility and levels of risk, particularly during periods of rising capital costs.
