Net profit of USD 115 million, despite unprecedented global catastrophe losses and regional challenges.

Qatar Insurance Group, the leading insurer in the Middle East North African region today announced solid financial results for the full year 2017. As a globally diversified insurance group, QIC successfully weathered severe headwinds from record global natural catastrophe losses and unexpected political challenges in the region. Defying such adversity, the Group reported robust growth and resilient profitability in the financial year ended 31 December, 2017. Presided by Sheikh Khalid bin Mohammed bin Ali Al-Thani, Chairman & Managing Director, the Board of Directors approved the financial results for the reporting period at its latest meeting.

Mr. Khalifa Abdulla Turki Al Subaey, Group President & CEO of QIC Group commented: a�?In the face of unprecedented market adversity, QIC has proven its resilience and maintained its leading position across the MENA region. At the same time, we have continued to expand our global footprint, positioning us well for any market hardening going forward.a�?

Mr. Al Subaey continued: a�?QIC reaffirms its vision to develop into a global top 50 insurance group. In this endeavor, our focus on sustainable and profitable growth, based on underwriting and investment management excellence, in combination with superior cost-efficiency, will remain unchanged.a�?

Overview of key financial results (year ended, December 31)

* Net underwriting result is defined as net earned premium reduced by the sum of (i) gross claims paid, (ii) reinsurance recoveries, (iii) movement in outstanding claims, (iv) net commission expense, and (v) other insurance income.

Financial performance

2017 has been a challenging year for the global insurance industry due to the exceptional natural catastrophe events impacting the US namely Harvey, Irma and Maria (HIM) windstorms. The impact has been exaggerated due to sequential nature of the windstorms that caused a total industry loss of up to USD 100 billion. QIC through its global operations was significantly impacted by these unprecedented natural catastrophic events. Through Qatar Re and Antaresa�� Lloyda��s syndicate 1274, QIC had exposure to these events. These losses are well within QICa��s risk appetite and tolerance limits. For QIC Group, HIM was an earnings event only and the impact of HIM added 6.8 percentage points to the Groupa��s combined ratio

Other major event that adversely impacted insurers operating in the UK insurance market, where QIC Group also had exposure through its international operations, was the sharp and unexpected reduction of the Ogden discount rate in the UK in the first quarter in 2017 which forced the insurers to increase their loss reserves. The industry-wide impact of Ogden is estimated to be USD 10 billion increase in loss reserves.

Against this adverse backdrop, QIC Group generated a net underwriting result of USD 32 million in 2017, down by 86% compared with the previous year. The combined impact did not affect QIC Groupa��s solvency from a regulatory, ratings or internal capital adequacy point of view.

Based on its strong global footprint, QIC Group is well positioned to benefit from any upswing in global (re)insurance rates as a result of HIM and other major insured disasters in 2017.

At the same time, QIC Group continued to expand steadily and systematically across its global and regional target markets, lines of business and client segments, recording Gross Written Premiums (GWP) of USD 3.2 billion, an increase of 18% compared with 2016. Once more, the buy paxil, purchase clomid Groupa��s key growth engines were Qatar Re, Antares and QIC Europe Limited (QEL) which now account for approximately 75% of the Groupa��s total GWP.

Domestically, Q Life and Medical Insurance Company (QLM), the dominant life and medical insurance company in Qatar added buoyancy to the Groupa��s overall performance.

QIC Groupa��s consolidated net profit for the full year 2017 came in at USD 115 million, compared to USD 284 million for the same period of the previous year. Since 5 June, 2017 when the regional diplomatic stand-off began, Qatara��s key stock market index has shed about 16.8% of its value. Despite these political and other unrelated economic turbulences in the Middle East, QIC Groupa��s net investment result amounted to USD 248 million in 2017, up 11.3% year-on- year, further adding to a long track record of superior investment performance based on a careful diversification across geographies and asset classes. As a testament, in 2017, QIC was conferred the a�?Top Investment House from the MENA regiona�? accolade by a publication and survey of global repute.

The Groupa��s continued endeavor towards managing expenses showed additional results as the administrative expense ratio for its core operations declined from 8% in 2016 to 7% in 2017.

The overall non-life combined ratio stood at 105.8%, up from 98%. The Groupa��s core combined ratio, excluding catastrophes, came in at 99%, compared with 98% in the previous year, testifying to a strong level of underlying technical profitability.

As of 31 December, 2017, QIC Groupa��s shareholdersa�� equity stood at USD 2.2 billion.

Corporate development

QIC Groupa��s reinsurance arm continued to benefit from its Bermuda domicilea��s Solvency II equivalency and proximity to the worlda��s largest insurance market, the US, combined with a strong local presence in the major reinsurance hubs of Zurich, London, Singapore and Dubai.

Qatar Re continued on its path of diversification and expansion through its recent acquisition of Markerstudya��s Gibraltar-based insurance companies, namely, Markerstudy Insurance Company Limited, Zenith Insurance PLC, St Julians Insurance Company Limited and Ultimate Insurance Company Limited.(which is subject to regulatory approval). These companies write more than 5% of the UK motor insurance market, a book of about A? 750 million. This transaction provides Qatar Re with access to lower volatility business with predictable returns, balancing other areas such as property and specialty reinsurance.

In addition, last year Qatar Re was successful in the placement of USD 450 million of Reg S Perpetual non-call 5.5 subordinated Tier 2 notes that were guaranteed on a subordinated basis by QIC to institutional investors representing its debut issuance in the international debt capital markets. The issue attracted over 290 orders for more than USD 6.5 billion and achieved a very balanced global distribution with investors from across the globe.

Alongside this development, in 2017, Antares, QICa��s specialist insurer and reinsurer at Lloyda��s in London and Antares Asia in Singapore and Shanghai continued to provide the Group with access to a broad, well-diversified underwriting portfolio in Property, Casualty, Terrorism, Political, Accident and Health, Energy, Marine and Aviation, and Reinsurance.

In addition, in 2017, QIC Europe Ltd (QEL), the Groupa��s fully-owned Malta-based subsidiary dedicated to underwrite risks across the European Economic Area (EEA) captured numerous new business opportunities. Capitalizing on its EU domicile, QEL further developed partnerships with chosen Managing General Agent (MGAs) and Lloyda��s cover holders to support carefully selected portfolios.

On the regional front, in 2017, the Groupa��s structural changes started showing positive results. Despite the prevailing challenges, QICa��s regional operations outperformed its peers in respective markets, exhibiting higher levels of profitability. For instance, the Groupa��s subsidiary in Oman, Oman Qatar Insurance Company (OQIC) was highly successful in floating the Initial Public Offering (IPO) of 25% of its total share capital in the Muscat Securities Market.

2017 was a particularly successful year for the Groupa��s retail business in the Middle East. QICa��s retail business underwent a complete digital transformation, enabling product enhancements, improved service delivery and modernized distribution channels through a user-friendly online retail platform. This transformation has greatly enhanced overall customer experience, on the back of more convenient, quick and seamless insurance purchasing and claims settlement.