DOHA: Qatar Insurance Company (QIC), the leading insurer in Qatar and the Middle East North African (Mena) region, reported a 5 percent growth in its Gross Written Premium (GWP) for the first six months of the year ended June 30, 2018, which reached at QR6.6bn.

The QIC Group reported profits of QR384m for the period, representing 91 percent of the full year 2017 profits.

This performance reflects the steady and systematic expansion of QIC Group’s international operations, which has further expanded in select low volatility classes.

The Mena markets continued to generate stable premiums and underwriting profitability, weathering unabated geopolitical headwinds.

The Group’s international carriers, namely Qatar Re, Antares and QIC Europe Limited (QEL) posted GWP growth of 9 percent to QR4.9bn vis-à-vis QR4.4bn in H1 2017.

QIC’s domestic and Mena operations driven by the Company’s Life and Medical insurance subsidiary, QLM, headquartered in Doha, remained stable. The Group’s international subsidiaries in Bermuda, the UK and Malta accounted for approximately 74 percent of QIC’s total GWP, compared with 71 percent in the first half of 2017.

Khalifa Abdulla Turki Al Subaey (pictured), Group President & CEO of QIC Group said: “QIC is making excellent progress in repositioning its international book towards areas of lower volatility.

The most recent global treaty renewals in April, June and July and the softer rate developments have confirmed our bearish view on the prospects of traditional low-frequency high-severity business. Our earlier decision to de-emphasize volatility has proven right.”

He added: “The Group’s outlook for the remainder of the year is cautiously optimistic. Our exposure to the geopolitical situation in the Middle East and the vagaries of global (re)insurance pricing is relatively moderate. QIC’s very strong risk-based capital adequacy, in combination with the scale and diversification of our business portfolio, will underpin the Group’s resilience going forward.”

Investment Income has dropped from QR563m in H1 2017 to QR408m in H1 2018. The 27 percent y-o-y drop in investments income can be mainly attributed to certain one off investment gains booked in H1 2017. Further reclassification of certain types of investment securities post adopting IFRS 9 from January 1, 2018 resulted in increased mark to market losses in H1 2018.

The Group’s net underwriting result increased by 26 percent y-o-y and amounted to QR330m compared with QR263m for the same period last year. QIC, in the previous quarter, recorded negative reserve developments on some older contracts in areas of business that are no longer within the company’s risk appetite and have been discontinued accordingly.

In addition, QIC continued to apply its recently adopted strengthened reserving governance and philosophy, resulting in a more cautious view of ultimate loss projections and a slower release of prior-year IBNR reserves.

Low-severity high frequency business now accounts for about 43 percent of QIC’s total underwriting portfolio.