QIC to exit low margin or loss making businesses; negotiations begin

Qatar Insurance Company (QIC), a leading insurer in Qatar and the Middle East North Africa (MENA) region, grew its profit and premiums in the year thus far despite fierce headwinds from inflation, but signalled its intention to exit businesses that no longer fit its strategy, staring with its Gibraltar-based insurance carriers.

QIC reported a net profit of QAR 571 million ($157 million) from continuing operations for the first nine months of 2022.

The group’s gross written premiums amounted to QAR 7.8 billion. Its domestic and MENA operations expanded its gross written premiums by 14% to QAR 2.3 billion.

In line with the strategy to restructure or exit from “low margin or loss making businesses”, QIC Group announced its intention to divest its Gibraltar-based direct insurance carriers.

QIC confirmed that it has received an offer for purchase from a “reputable institutional buyer” which is under negotiation. The proposed divestment plan is subject to approval by all relevant authorities.

Khalifa Abdulla Turki Al Subaey, chairman and managing director of QIC Group, said: "QIC Group continued to deliver healthy results despite strong headwinds from soaring inflation, geo-political uncertainties, high natural catastrophe losses and financial market volatility.

"In this exceptional environment, our Group further strengthened its leadership position in our home markets. We reduced our exposure to volatile severity risks and laid the foundations to further

trim our portfolio and to divest those businesses that no longer fit our lean, yet well-diversified business strategy."

Salem Khalaf Al Mannai, group chief executive officer, said: “QIC's domestic insurance business in Qatar and MENA recorded another strong performance in the first nine months of 2022, turning in a solid underwriting profit. Gross written premiums in the region grew by 14% to QAR 2.3 billion, compared to QAR 2 billion in the first nine months of 2021. Volume growth was mainly driven by strong demand for QIC's market-leading online and digital product offerings and services.”

“The Group’s international operations, QIC Global which had recently announced its intention to align its core companies under the Antares brand name, generated QAR 5.5 billion in premium volume, representing approximately 70% of the Group's total gross written premiums,” he added.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.