QIC insurance service results down by 38% in Q2

By Navneeta Nandan

Aug 13 - (The Insurer) - Qatar Insurance Company (QIC) has reported an insurance service result of QAR 144.5 million ($39.68 million) in the second quarter of 2025, down 38.4% from QAR 234.5 million ($64.40 million) in the prior-year period.

The group, which predominantly operates across Qatar and the MENA region, posted a net profit of QAR 178.4 million ($48.99 million) or QAR 0.043 per share during the quarter, a 7.4% increase from QAR 166.1 million ($45.61 million) or QAR 0.039 per share in the prior-year period.

For the first half of 2025 ending June 30, the group's insurance service result fell 34.8% to QAR 220.9 million ($60.66 million), from QAR 339 million ($93.09 million) last year. The H1 net profit stood at QAR 383.4 million ($105.29 million) or QAR 0.089 per share, which is a 6.4% rise from QAR 360.1 million ($98.89 million) or QAR 0.084 per share last year.

The gross written premiums (GWP) for the first half of the year totalled to QAR 5.7 billion ($1.57 billion), which is a 17% year-on-year growth.

"Geopolitical tensions, tariff conflicts, tighter financial conditions and policy uncertainty continue to weigh on global GDP growth. Growth remained slow but stable through H1 2025, but is expected to fall further through the second half of the year, and thereafter to stabilise as supply chains shift and major economies respond to tariffs with increased support spending and monetary easing," QIC said in its release.

"In contrast to the slowing global growth trend, growth in MENA is expected to rise moderately to 2.6% in 2025, up from 1.9% in 2024 (OECD). The global insurance industry faces lower premium growth, with the added downside risks of competitive pressure and high insured catastrophe losses (forecast by Jefferies to reach USD 90 billion for H1 2025, the second-highest H1 loss on record and driven by non-peak perils including two major wildfires in California), countered by rising investment returns."

QIC, parent company of Lloyd's syndicate Antares and reinsurer Antares Re, said that 60% of the group's GWP comes from its domestic and MENA operations, while 40% from its international business. It said that it is continuing its long-term strategy of "rebalancing its underwriting portfolio to focus on growth in profitable markets in Qatar and the MENA region, while exiting from loss-making and lower margin international business".

QIC has proposed to establish a branch operation in Saudi Arabia, where it said the market GWPs are projected to grow at a five-year compound annual growth rate (CAGR) of 8.9%, reaching SAR 105.3 billion ($28.06 billion) by 2029.

($1 = 3.6415 Qatar riyals)

($1 = 3.7522 riyals)