Qatar Insurance Company Q.S.P.C. (QATI.QA) Q3 FY2025 Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to the Qatar Insurance Company Q3 '25 Earnings Conference Call. My name is Brecca, and I will be coordinating your call today. [Operator Instructions] I would now like to hand you over to our host, Varghese David, Group Chief Financial Officer, to begin. So please go ahead, Varghese.

Yes. Thank you. Welcome all to QIC Group's quarterly earnings call. We are pleased to report the financial highlights of QIC Group for the 9 months ended 31st September. The key highlights for the period are as follows: The gross written premium reached QAR 7.9 billion, up 9% quarter-to-quarter. The Net Profit before Pillar 2 tax global taxation provision reached QAR 645 million at a 23% increase quarter-to-quarter. The Net Profit after tax reached QAR 588 million with a 12% increase year-on-year. The Insurance Service Results stood at QAR 353 million, and the investments and other income rose 3% to QAR 746 million. Earnings per share increased to QAR 0.135 from QAR 0.118. The regulatory solvency ratio for the group as of Q3 stood at 209%. Now moving on to the details. The results for the first 9 months continue to reflect the consistent and stable bottom line focused growth story of QIC for the past 11 quarters. And the latest reported numbers are the key milestone in the group's strategic objectives and plans ahead. Our focus on innovation, client-centric new products and solutions, coupled with robust governance and embedded system controls has equipped us to navigate the market challenges with confidence. By strategically rebalancing our portfolio towards high-growth markets in the MENA region and leveraging our international operations through Lloyd’s London platform, we continue to deliver sustainable and consistent profitable growth. Our stable investment portfolio managed with discipline and precision further reinforces QIC's position as a resilient industry leader. The results of the above we've seen and reported Net Profit before Pillar tax -- Pillar 2 global tax provision, reaching QAR 645 million with a 23% growth quarter-to-quarter. Now moving on to the other operational aspects. The regional gross written premium increased to QAR 4.7 billion, up 21%, while the global international operations gross written premium remained flat at 2.3% in accordance with our business plans. Unlike other peers in the region, our geographically diverse and well-balanced underwriting portfolio which has evolved over the last couple of years, continue to mature with a 60-40 mix between the regional and the international operations. Our existing book of risks, which are diversified across 20-plus different lines of varied business lines are diversified across globe geographically. And within the types of business, our focus is on the short-tail business in the personal lines. We continue to grow in short-tail segment of business risks that is predominantly risk which are, I mean, for 1 year and risk that can be efficiently marketed and distributed through our leading digitally enhanced top B2C and B2C channels. Short-tail risks are, for instance, they are less capital intensive with low severity and these are easy to manage and market. We have also now exited from our low margin and high severity, high volatile international business, which you used to have in the previous year. Now moving on further to the insurance business. The insurance revenue for Q3 was at QAR 6.5 billion. The insurance service expenses were at QAR 4.8 billion and the insurance service results was at QAR 343 million. Our IFRS 17 combined ratio continued to improve as targeted. And as at Q3 2025, that stands at 93.11% within our expected combined ratio targets. During the quarter, the effects of the higher pace of year-on-year premium growth at the regional operations has resulted in lower insurance revenue and earnings during this reporting period. This lower [accrual] of insurance revenue compared to the higher claims IBNR considered at the growing pace of our portfolio has resulted in lower insurance income during the reporting period. Our international operations continue to deliver its consistent and stellar performance during the quarter despite the impact of major global cat events like the U.S. wildfires and the reserve changes in the Ukraine war losses, which has not been a material aspect for the QIC Group. Currently, majority of our international business is centrally underwritten through our wholly owned Lloyd's subsidiary, that is Antares Syndicate, which is the flagship carrier for our international operations. Antares Syndicate has been consistently delivering healthy with underwriting results for the past several underwriting years and is among the top-tier syndicate within their niche insurance lines of business. Our operating and administrative expenses remain within our budget targets. Now moving on to the investments. QIC's high-quality, stable and well-diversified investment portfolio generated robust returns on investments for the period with a 5% yield compared to 4.9% for the same period last year. Overall, QIC achieved a net profit for the first 9 months at QAR 588 million, representing a 12% quarter-to-quarter increase. The above is a brief summary of our financial results, and we are happy to take any further queries or clarifications.

[Operator Instructions] I can confirm we have no questions registered. So I would like to hand it back to Varghese David for some final closing comments.

Thank you. Thank you all. I mean if you have any further queries, do let us know. We can respond to you separately. Our investor teams can respond to you separately. Thank you.

I can confirm that does conclude today's conference call with Qatar Insurance Company. Thank you all for your participation. You may now disconnect, and please enjoy the rest of your day.