QIC reports record net profit of QAR 1,001 million and an RoE of 18.5 percent in 2014
Qatar Insurance Company (QIC), the Doha-?headquartered market leader in Qatar and largest insurer in the Middle East in terms of profitability and market capitalization, announced its financial results for the year ended December, 31 2014, following a meeting of the Board of Directors held today.
QIC’s business performance in 2014
The audited financial statements for the year ended December 31, 2014 highlight that the Group has grown its asset base to USD 4.4 billion from USD 3.2 billion in 2013, while maintaining robust levels of profitability, liquidity and market capitalization.
Gross written premiums for 2014 reached USD 1.54 billion, reflecting a year-?on-?year increase of 59 percent over the same period in 2013. Net underwriting result for the year was USD 182 million, reflecting an increase of 37 percent on the previous year. Investment income and other revenues were USD 282 million, providing an increase of 43 percent on the previous year.
Milestones in corporate development in 2014
The 2014 year was marked by the successful expansion of the Group’s international business which currently accounts for approximately 60% of its overall gross written premiums. Through the acquisition of Antares Holdings Limited, a specialist insurance and reinsurance group operating in the Lloyd’s insurance market, and the establishment of a fully-?owned Malta-?based subsidiary, QIC Europe Limited, the Group has further expanded its global footprint. QIC Europe Limited is well-? poised to become a strategic platform for the Group for the underwriting of risks situated throughout the European Economic Area. In addition, QIC’s reinsurance subsidiary Qatar Re has significantly contributed to the Group’s global expansion and premium growth in 2014 and established a Bermuda branch in order to tap into the potential of Northern America, the world’s largest insurance market.
Presided over by Sheikh Khalid bin Mohammed bin Ali Al-?Thani, Chairman of the Board and Managing Director of QIC, the Board reaffirmed its commitment to develop and enhance the Group’s presence across the Gulf Cooperation Council and MENA regions and to further expand its wider international operations in pursuit of its strategic objective to establish QIC as one of the top fifty international insurance and reinsurance groups in support of the Qatar National Vision 2030.
Sheikh Khalid bin Mohammed bin Ali Al-?Thani, Chairman and Managing Director of QIC Group, commented: “I wish to thank the members of the Board, the Group’s management team and its employees, all of whom have played an important role in ensuring the Group achieved its strategic objectives in 2014. I am confident that 2015 will bring continued success.”
“As always, we will continue to ensure that the Group’s growing operations – both domestic and international -? remain efficient and cost-?effective to ensure that we maximize shareholder value and, ultimately, the success of the Company.”
“At the culmination of 50 years of operational excellence of the company, we are pleased to recommend a cash dividend of 25 percent (QR 2.50 per share) and a bonus share of 15 percent (3 shares for every 20 shares).”
Referring to the Group’s financial performance, Group President and CEO Mr. Khalifa Abdulla Turki Al Subaey commented: “I am very pleased to report that the Group’s net profit after minority interest in 2014 was USD 275 million, representing an increase of 33 percent on the previous year. This impressive result reflects the Group’s continued growth and stability, arising from the ongoing diversification of its underwriting operations, and the strong investment performance achieved in 2014.”
Mr. Khalifa Abdulla Turki Al Subaey added: “QIC’s financial results reflect our customers’ long-?term commitments to our products and services and the efficient execution of the Group’s strategy by our established and leading management team. This is reflected in QIC’s acquisition of Antares Holdings Limited and the establishment of QIC Europe Limited, both of which were key milestones in QIC’s recent history. The Board and I are delighted with the outstanding performance of the Group and we aim to capitalize on this excellent result and the momentum achieved in 2014 to further our goal of becoming one of the world’s leading insurance groups.”