Qatar Insurance, a top insurance house in the Mena region, recorded 15 per cent growth in Gross Written Premium (GWP) to QR3.09 billion ($848 million) in Q1 2017 when compared to the same reporting period in 2016.

Key contributors to the reported growth in GWP can be attributed to the Group’s global reinsurance and specialty insurance subsidiaries, namely, Qatar Re and Antares in addition to its Life and Medical insurance subsidiary, QLM, a statement said.

The Group’s international subsidiaries in Bermuda, London and Malta reported growth at a rate of 37 per cent and now account for approximately 69 per cent of the Group’s total GWP.

Despite continued regional and global market turbulence and softening of rates, the Group recorded a significant increase in investment and other income which amounted to QR304 million, up by 51 per cent as compared to the same period last year.

On account of spiralling costs that emanated from major claims, the Group’s net profit for the reporting period stood at QR302 million as compared to QR322 million in the same quarter last year.

The net underwriting results decreased by 35 per cent and amounted to QR179 million compared to QR277 million for same reporting period last year, as a result of change in Ogden Discount Rate announced by the ministry of justice in the UK, which modified the discount rate related to compensation to claimants of long term claims (personal injury) from (2.5 per cent) to (-0.75 per cent).

This had a significant negative impact on the motor insurance business in UK with expected losses to the insurance market of USD 7 billion. Qatar Re, QIC’s subsidiary, had recognized the impact of this change in Q1 2017 which resulted in decrease in its net underwriting results.

For 2017, the Group has renewed its focus on streamlining operations for achieving enhanced operational efficiency. At Q1 2017, the administrative expense ratio for its core operations was at8.5 per cent.

As of March 31, 2017, QIC Group’s shareholders’ equity stood at QR8.336 billion. Earnings per share for the first quarter in 2017 amounted to QR1.09 when compared to QR1.16 for same period last year.

Khalifa Abdulla Turki Al Subaey, Group president & CEO of QIC Group said: “The results for Q1 2017 highlight the group’s sound risk management principles and constant endeavour at exploiting growth opportunities in emerging markets.  We will continue to increase our book of business, build on our capabilities and expand our reach in order to introduce innovative products and services in the target markets.”

“The Group’s outlook for the future remains cautiously optimistic. In the long term, our goal is to adapt to a rapidly changing environment, seize market opportunity as they arise whilst focusing on maintaining close proximity with our clients,” he added. - TradeArabia News Service