Qatar Insurance Company Q.S.P.C. (QATI) Q4 FY2025 Earnings Call Transcript & Summary

Hello, everyone, and thank you for joining us today for the Qatar Insurance Company Q4 '25 Earnings Conference Call. My name is Sami, and I'll be coordinating your call today. [Operator Instructions] I'll now hand over to your host, Vignesh, Investor Relations contact to begin. Please go ahead, Vignesh.

Sure. Good afternoon, everyone. Welcome to the 2025 earnings call. From QIC's management, our speakers are Mr. Varghese David, who is our Group Chief Financial Officer; Mr. Chirag Doshi, who is our Group Investment or Chief Investment Officer; and then we have Mr. Mena Mounir, who is the Senior Vice President of Group Finance. As for today, we'll be giving a group overview of QIC's financial results. And towards the end of the call, we'll be having a brief Q&A session. Handing it over to our Group CFO, Mr. Varghese David.

Again, welcome all to QIC Group's quarterly earnings call. We are pleased to report the financial highlights of the group for the year ended 31st December 2025. The key highlights for the year are as follows. The gross written premium reached QAR 10 billion, up 9% year-on-year. Net profit before Pillar II global tax provision reached QAR 874 million with a 19% year-on-year increase. Net profit after tax rose to QAR 806 million, up 10% year-on-year. Insurance service stood at QAR 506 million. Investments and other income rose 3% to QAR 993 million. The earnings per share increased to QAR 0.188 from QAR 0.171 with a proposed cash dividend distribution of 11% for the year. The regulatory solvency ratio of the group at year-end remained robust at about 200%. Now moving on to the details. The results for the year 2025 is a testament of stable, consistent and growing profitability that QIC has achieved over the past 3 years from 2023 to 2025. For the last 12 consecutive reported quarters, we have consistently delivered stable and improving insurance income in a very competitive and rate softening environment. And the latest reported numbers are a key milestone for QIC Group against its set medium- and long-term strategic objectives and plans. Our focus has always been to innovation, client-centric new products and solutions with robust governance and embedded system controls, which has been -- I mean, facilitate us to navigate the market challenges and with confidence. In a competitive market environment, our investments made in actuarial GLM and GBM models, GBM pricing models, along with the prudent allocation of capital to the various lines of business, which gives us better return on equity makes QIC different from the other regional players. By strategically rebalancing our portfolio over these years towards high-growth markets, high profitable MENA region, MENA direct business and leveraging our international operations through our Lloyd's Syndicate platform, we continue to deliver sustainable and consistent profitable growth. As always, our stable investment portfolio managed with discipline and precision further reinforces QIC's position as a resilient industry leader. Now moving on to the other key assets further details. The regional gross written premium increased to QAR 5.9 billion with a 24% increase year-on-year increase, whereas our international operations contributed QAR 4 billion to the group's GWP in accordance with the set plans for the year. Unlike other peers in the region who have high geographical concentration to the areas where we operate, our geographically diverse and well-balanced underwriting portfolio, which has evolved over the last couple of years, continue to mature with a 59-41 mix between regional and international business. Our existing book of risks are diversified across 20-plus different lines of -- various lines of business and which are also diversified globally. And within the type of business we write, our focus has been always to the short-tail personal lines of business, which we are able to sell directly to the customer to the B2C and B2B channels, which we are the leaders in the market. And also, as we've been saying in the previous calls, we have now exited from all our low-margin loss-making high severity and high volatile risk, which we've been using -- which have been writing in the past from the international side, and we have come out of the U.K. direct motor completely. As of Q4 2024 to further expand our MENA reach of business, we established a new operations at BIFC through which we are -- I mean we'll be underwriting select incoming frac business. And this new vertical has been led by a team of qualified and experienced underwriters who has been successfully operating in the region for the past 25-plus years. Now with regard to the further details to the insurance results, the insurance revenue for the year stood at QAR 8.9 billion and the insurance service results was QAR 506 million. Our IFRS 17 combined ratio continued to improve as targeted. And at the end of 2025, it stands at 93%, which is within our expected target combined ratio of 93% to 95%. And this has improved quarter-to-quarter during the year. During the quarter, the effect of the high year-on-year premium growth in the regional operations, we have been able to manage to make sure the profitability and the combined ratio has been maintained. Now moving on to the international operations. Despite the global market facing big cat losses like the losses coming from the U.S. wildfire, we've been able to successfully deliver consistent and stable results all these years. So now moving on to the investment side. QIC's high-quality and stable and well-diversified investment portfolio continue to generate robust returns with an yield of 5.1% compared to 4.9% last year. Now moving on to the other key milestones achieved during the year. By leveraging our internally developed expertise and skill sets over the years, we continue to grow our noninsurance streams of risk-free income through external asset management fees and external IT solutions income. By the close of year 2025, QIC Asset Management's external AUM exceeded USD 2 billion. Additionally, the group's IT solution provider, Anoud Technologies has successfully expanded its client base to include external clients across Europe, Africa and North America. With regard to ESG updates, during the year, QIC has achieved a AAA ESG rating from MCSI which we are the only insurer in the MENA region to achieve this acclaimed rating. Overall, QIC achieved a net profit for the year 2025 at QAR 806 million, representing a 10% year-on-year growth. The above is a brief summary of our 2025 results and do let us know if you have any further queries or clarifications.

Are we ready for Q&A?

Yes.

[Operator Instructions] We currently have no questions. So I'd like to hand back to Varghese for some closing remarks.

Yes. Thank you for joining the call. So if you have any further queries, do contact our investor management team. So we are happy to respond to your queries. Thank you.

This concludes today's call. We thank everyone for joining. You may now disconnect your lines.

Thank you.