The headquarters of Qatar Insurance Company
Qatar Insurance Company, the leading insurance company in Qatar and the MENA region, announced the results of the first half of 2020 after the Board approved the financial statements during the meeting chaired by His Excellency Sheikh Khalid bin Mohammed bin Ali Al Thani, Chairman and Managing Director.
The first half of 2020 has been negatively affected by the repercussions of the Covid-19 pandemic on global economies and financial markets, and despite difficult market conditions, Qatar Insurance Company has expanded its business record by increasing the total insurance premiums by 13% to QR 7.2 billion. Moreover, Qatar Insurance Company succeeded in issuing permanent bonds of Tier 2 Capital with a value of USD 300 million in the second quarter of 2020.
Qatar Insurance Company recorded in the first half of 2020 a growth in insurance premiums by 13% to reach QR 7.2 billion compared to the amount of QR 6.4 billion achieved in the first half of 2019, and that growth was a result of increased insurance and reinsurance prices in some Global markets and the increase in personal insurance online at the local level. However, the performance of the insurance operations of the international companies affiliated with the group, namely Qatar Reinsurance, Antares, and Qatar Insurance Europe Limited, and its Gibraltar-based companies, were affected by the repercussions of the Covid-19 pandemic, and the ensuing closure on some markets.
Despite the headwinds, Qatar Insurance International’s insurance companies have continued to successfully reset their insurance portfolio by expanding into selected businesses with low volatility while reducing their exposure to high intensity risks. Today, the operations of the group’s international companies represent nearly 75% of the total The group’s insurance premiums, which contribute significantly to the diversification of the group’s insurance operations.
In the first half of 2020 AD, Qatar Insurance Company’s local and regional operations in the MENA region continued to promote the digital transformation in the personal insurance business, which strengthened its position in the regional markets. Indeed, during the closing period, the group’s Personal and Life and Medical Insurance Qatar Qatar Insurance Company, QLM Life and Medical Insurance, benefited from its digital capabilities and continued to manage the distribution of its products and claims processing services through Its digital platforms are highly developed, and the move has received more support with strong demand for products and services online, as evidenced by the size of insurance premiums.
In light of the turmoil in the global financial markets, the investment portfolio of Qatar Insurance Company achieved a net investment income of 152 million Qatari riyals in the first half of 2020 compared to (464) million Qatari riyals in the first half of 2019.
During this reporting period, the Group continued to achieve the benefits from its continuous endeavors to increase the efficiency of operations, as the exceptional operational efficiency of Qatar Insurance Company improved further, as the percentage of administrative expenses for its core operations reached 5.7% during the second quarter of 2020. Compared to 6.1% in the first half of 2019 and in general, the net loss for the group during the first half of 2020 was 198 million riyals.
In May 2020, Qatar Insurance Company successfully issued a $ 300 million Tier 2 Capital (permanent bonds of the second tranche). Despite providing excellent security for insurance policyholders, the new issuance strengthened the strong capital position and effective capital structure of the group. From the current turmoil in the financial markets, investors have shown interest and interest in these permanent bonds, which proves the level of investor confidence in the Qatar Insurance Group.
As part of their struggle to contribute to the achievement of the Qatar National Vision 2030, Qatar Insurance Exchange Program Group completed knowledge with the company “Sompo Japan Insurance”, one of Japan’s insurance companies leading, sending employees “Sompo company” to the headquarters of the Qatar Insurance Company in Doha to enhance the technical skills Exchanging experiences and adopting best practices.
Commenting on the financial performance for the first half of 2020, Mr. Khalifa Abdullah Turki Al-Subaie, head of the group, said: “Qatar Insurance Group has demonstrated strong flexibility during these difficult times. At a time when customers and companies in most of the major economies around the world were suffering from the embargo And closing, we have achieved growth in our business through the implementation of a prudent underwriting policy, in addition to our strong digital platforms. Moreover, we have succeeded in issuing $ 300 million worth of bonds in a highly volatile market environment, and these two achievements are a testament to the strength of our brand and the trust of our customers. And investors in Qatar Insurance Group. “