Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of...

38
Qatar Insurance Group Domestic dominance Regional leadership Global ambitions April 2015

Transcript of Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of...

Page 1: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Qatar Insurance Group

Domestic dominance Regional leadership

Global ambitions

April 2015

Page 2: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

At a glance

Doha

2

Page 3: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

50 YEARS OF OPERATIONAL EXCELLENCE

QIC established Current Senior Management

appointed

KQIC (Kuwait) and OQIC (Oman) established

Qatar Reestablished

50th Anniversary and acquisition of

Antares

MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 – excl. L&H World: QIC No 140 of 737 companies

En route to establishing a global footprint based on domestic dominance and regional leadership

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

3

1964 1968 1986 2002 2004 2006 2009 2011 2014

Q-Life & Medical established

Dubai branch Abu Dhabi branchQIC International

established

QIC Europe Ltd established in

Malta

Page 4: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

QIC Group: Well diversified multi-pillar business set-up

QIC

DirectInsurance

Antares

Specialty Insurance Qatar Life &

Medical

Life & Medical

Qatar Re

Reinsurance

QIC Asset Management

Asset Management

QIC Real Estate

Real Estate

SUSTAINED GROWTH FROM DIVERSIFIED SOURCES

19.1

17.7

17.5

17.1

18.4

1,705

1,588

1,664

2,346

3,996

Market Capitalization in USD million

162

163

168

207

2752014

2013

2012

2011

2010

July 2014: Financial strength rating ‘A’ (strong), outlook stablewww.standardandpoors.com

Dec 2014: Financial strength rating of ‘A’ (excellent)www.ambest.com

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Net incomein USD million

Return on Equityin %

Earnings per sharein USD

4

1.01

1.01

1.04

1.29

1.71

Qatar Re

Page 5: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

2014 – A SET OF RECORD FINANCIAL PERFORMANCE FIGURES*1

46

14

0

15

2 19

7

28

2

8.1%9.6% 10.0%

8.7%

10.7%

0.0%

4.0%

8.0%

12.0%

0

100

200

300

2010 2011 2012 2013 2014

591 655 703

970

1,542

2010 2011 2012 2013 2014

11793 94

133

182

2010 2011 2012 2013 2014

Investment results and yield in USD million

162 163 168

207

275

2010 2011 2012 2013 2014

Net profit in USD million

Gross written premiums in USD million Underwriting results in USD million

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

5

*2014 figures include Antares

Page 6: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Strategy

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

London

6

Page 7: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

EXPANDING GLOBALLY WHILST CONSOLIDATING OUR REGIONAL LEADERSHIP

Bermuda London Zurich Malta Singapore

• Antares Re• Qatar Re US &

NatCat

• Antares Lloyd‘s 1274 Syndicate

• Qatar Re Rep. Office

• Qatar Re Continental Europe and global operations

• QIC Europe Ltd • Qatar Re Rep. Office for Asia

Doha Dubai Muscat

• QIC direct insurance operations (UAE)

• QIC Group’s HQ and domestic operations

• Qatar Re’s HQ

• Oman QIC

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

7

Kuwait

• Kuwait QIC

Abu Dhabi

• QIC direct insurance operations (UAE)

Page 8: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

BROAD SPECTRUM OF CAPABILITIES

QIC Domestic Reinsurance Specialty Life & Medical Asset Management

• Personal lines

o Motor

o Home Care

o Travelcare

• Commercial lines

o Energy

o Marine & Aviation

o Medical

o Motor

o Property & Commercial

• Agriculture

• Credit & Surety

• Energy

• Engineering

• Facultative

• Marine & Aviation

• Motor

• Property

• Structured Finance

• Aviation

• Financial Institutions

• Marine

• Political and Financial Risk

• Professional indemnity

• Property Excess of Loss

• Terrorism

• Group Life

• Credit Life

• Mortgage Life

• Group Medical

• Proprietary asset management

• Third party asset management

• Collateralized reinsurance (CATCO)

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

8

Asset Management

BERMUDA

ZURICH

DOHA

SINGAPORE

LONDON

EXPERIENCED FOR THE FUTURE QATAR RE WORLDWIDE

LATEST NEWS PRODUCTS & SERVICES QATAR RE HUBS

QATAR RE

ANNOUNCES NEW

MANAGEMENT TEAM

Doha, Qatar – 13 May 2013

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READ MORE READ MORE READ MORE

Qatar Re supports its clients with lead

quotations based on proprietary pricing

capabilities and superior underwriting skills.

Legals ©2014, Qatar Re. LLC

HOME QATAR RE HUBS

Doha

London

Zurich

ABOUT US

Introduction

Management

Corporate Strategy

Capitalization & Ratings

Risk Management

Regulatory Notice

The QIC Group

Careers

NEWS & MEDIAPRODUCTS

Agriculture

Credit & Survey

Energy

Engineering

Marine & Aviation

Motor XL

Property

CONTACT US

SEARCH JOINLOG IN

HOME ABOUT US PRODUCTS QATAR RE HUBS NEWS & MEDIA CONTACT US

“WE ARE COM M I TTED TO BUI LDI NG THE FI RST GLOBAL REI NSURANCE FRANCHI SE, BASED ON

EM ERGI NG M ARKET CAPITAL”

GUNTHER SAACKE

Chief Executive Of cer

Page 9: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

EXECUTION: ANTARES ACQUISITION PUTS QIC ON GLOBAL MAP

o Acquisition of Antares in February 2014 for a purchase consideration of USD 325 million

o Access to Antares Lloyd’s Syndicate 1274 and Bermuda Class 3 reinsurer

o Build a significant Property & Casualty and Specialty footprint

o Establish international recognition for QIC

28%

15%

11%11%

5%

31%

3% 2%N. America, CAN

Far East, AUS

Europe

UK

LatAM

RoW

Africa

ME

32%

11%

12%7%

11%

10%

2%

10%5%

Marine

Energy

Aviation

Terrorism

PI

FI

Pol. Risk

Prop. XL

Misc.

26

1 29

4 37

2

37

8

-19.0 15.4 24.3 24.0

110.6

91.3 90.0 91.3

70.0

85.0

100.0

115.0

-20

80

180

280

380

480

2011 2012 2013 2014

GWP Net Income Combined Ratio

Strategic rationale

Geographic mix, 2014 Business mix, 2014

Key figures in USD million

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

9

Page 10: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

EXECUTION: GROWING QATAR RE INTO A GLOBAL LEADER

48%

25%

20%

3% 4%

Europe

Americas

Asia

Africa

Oceania

29%

4%

17%7%

15%

7%

21%

Motor /CasualtyMarine &AviationProperty

Energy

Agriculture

Credit &SuretyOthers /Multi Lines

10

3

33

7

53

6

3.3 0.5 15.9

112.0

105.0102.0

70.0

85.0

100.0

115.0

0

200

400

600

2012 2013 2014

GWP Net Income Gross Combined Ratio

Key figures in USD millionAchievements to date

Geographic mix, 2014 Business mix, 2014

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

10

o Built an efficient, well diversified portfolio, GWP grew 6-fold since repositioning in 2013

o Ability to offer lead quotations and capacity based on superior technical and product expertise

o Offer highly rated security and instant diversification to reinsurance panels

o Based on 2014 GWP, Qatar Re is among the global Top 50 reinsurers

Page 11: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Competitive Position

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Zurich

11

Page 12: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

3,1

87

2,6

48

93

1

1,3

75

1,4

91

1,2

90

73

7

1,1

41

1,3

17

35

9

96

8

1,4

90

43

4

79

3 1,1

00

65

3 84

4

55

9

27

4

34

4

20

6

(13

3)

64

67

(51

)

49

39

36

(10

)

(21

)QIC Tawuniya Orient Oman Ins.Co

Med Gulf ADNIC Bupa Arabia Gulf Ins. Co Salama United

Total Assets Gross premiums Net profit

QIC consistently outperforms major regional insurance and reinsurance groups due to its focus on

Technical excellence in underwriting and asset management

Diversified growth across business segments and geographies

DOMINANT POSITION IN THE MENA REGION

Regional comparison (FY 2013) in USD million

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

12

Page 13: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

SIGNIFICANT POTENTIAL FOR ADDITIONAL GLOBAL AND REGIONAL GROWTH

QIC Domestic and regional o Dominant market share in Qatar and

ahead of its peers in MENAo Significant further growth potential in

rapidly growing MENA insurance markets

QIC domestic/regional GWP

USD 920 million

MENA Life & Non-Life

USD 50 billion

Qatar Re o Already among top 50 reinsurers

worldwideo Aspires to become a Top 10 reinsurer by

2025o Continues to expand geographically and

by line of business USD 536 million USD 6 billion

Qatar Re GWP GWP Top 10 reinsurer

Antares o Established as independent Managing

Agent at Lloyd’s, the world’s global insurance and reinsurance market of choice

o Ranks no. 35 within Lloyd’s by GWPo Synergies with QIC have potential to enhance

growth

Antares GWP GWP Lloyd’s

USD 380 million USD 40 billion

QIC Group o Aspires to become a Top 50 international

composite insurance groupo Well diversified by geography, lines of

business and sectorso No. 140 worldwide by market cap

QIC Group GWP Global Non-Life GWP

USD 1.54 billion USD 1.4 trillion

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

13

BERMUDA

ZURICH

DOHA

SINGAPORE

LONDON

EXPERIENCED FOR THE FUTURE QATAR RE WORLDWIDE

LATEST NEWS PRODUCTS & SERVICES QATAR RE HUBS

QATAR RE

ANNOUNCES NEW

MANAGEMENT TEAM

Doha, Qatar – 13 May 2013

Lorem ipsum dolor sit amet consectetur

adipiscing elit videst empera de quae

aceribus volestibus adigendelita.

READ MORE READ MORE READ MORE

Qatar Re supports its clients with lead

quotations based on proprietary pricing

capabilities and superior underwriting skills.

Legals ©2014, Qatar Re. LLC

HOME QATAR RE HUBS

Doha

London

Zurich

ABOUT US

Introduction

Management

Corporate Strategy

Capitalization & Ratings

Risk Management

Regulatory Notice

The QIC Group

Careers

NEWS & MEDIAPRODUCTS

Agriculture

Credit & Survey

Energy

Engineering

Marine & Aviation

Motor XL

Property

CONTACT US

SEARCH JOINLOG IN

HOME ABOUT US PRODUCTS QATAR RE HUBS NEWS & MEDIA CONTACT US

“WE ARE COM M I TTED TO BUI LDI NG THE FI RST GLOBAL REI NSURANCE FRANCHI SE, BASED ON

EM ERGI NG M ARKET CAPITAL”

GUNTHER SAACKE

Chief Executive Of cer

Page 14: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Performance

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Hamilton

14

Page 15: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

64

115

70

121

207

2010 2011 2012 2013 2014

Key Highlights (USD million) 2010 2011 2012 2013 2014

Gross premium 591 655 703 970 1542

Underwriting results 117 93 94 133 182

Net profit 162 163 168 207 275

Investment and other income 533 140 152 197 282

Earnings per share (restated) 1.01 1.01 1.04 1.29 1.71

Cash dividend per share 1.79 1.10 0.69 0.69 0.69

Bonus share -- 20% 20% 25% 15%

Share price at 31 December 22.94 21.37 18.65 18.27 24.89

Operating Free Cash Flow growth in USD million Total Assets in USD million

STRONG TRACK RECORD OF TOP AND BOTTOM-LINE GROWTH…

CAGR 21%

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

15

1,988 2,135 2,267

3,196

4,422

2010 2011 2012 2013 2014

CAGR 17%

Page 16: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Dividends in USD

31

-Dec

-13

31

-Jan

-14

28

-Feb

-14

31

-Mar

-14

30

-Ap

r-1

4

31

-May

-14

30

-Ju

n-1

4

31

-Ju

l-1

4

31

-Au

g-1

4

30

-Sep

-14

31

-Oct

-14

30

-No

v-1

4

31

-Dec

-14

QATI QD Equity DSM Index QINS Index

Return on Equity %

Market Value in USD million

…AND SHAREHOLDER VALUE CREATION

13.9

19.9 18.7 17.7 17.7 17.0 17.1 18.5

2007 2008 2009 2010 2011 2012 2013 2014

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

16

QIC shares outperformed QE Index and QE Insurance index

0.821.37 1.79

1.10 0.69 0.69 0.69

2.060.55

0.55 0.69 0.41

2008 2009 2010 2011 2012 2013 2014

Pay-out ratio

64%87% 70% 82% 75% 66% 85%

Dividend per share Bonus per share

1,3262,007

1,059 1,2681,705 1,588 1,664

2,346

3,996

718 931 702 782915 915 992

1,4211,563

2006 2007 2008 2009 2010 2011 2012 2013 2014

Market Cap Book Value

Page 17: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

591 655 703

970

1,542

2010 2011 2012 2013 2014

CAGR 9%CAGR 21%

Combined ratio

Gross Premiums In USD million Net Underwriting Results In USD million

CONSISTENT UNDERWRITING PERFORMANCE

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

52%

51%

58%

65%

65%

10%

9%

9%

10%

17%

14%

10%

17%

15%

15%

18%

16%

2010 78%

2011 90%

2012 92%

2013 93%

2014 98%

Loss ratio Acquisition cost

Net Cat Losses Expense Ratio

78%90% 92% 93% 98%

2010 2011 2012 2013 2014

Combined ratio 17

117

93 94

133

182

2010 2011 2012 2013 2014

Page 18: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Domestic,24%

Regional, 17%

Inter-national,

59%

Motor25%

Health & Life12%

Property15%

Energy12%

Marine & Hull17%

Liablity5%

Agriculture5%

Others9%

Superior geographical and product diversification translates into high capital efficiency

QIC is the only MENA composite insurer with a sizeable international footprint: Qatar Re and Antares account for 59% of QIC’s total GWP IN 2014

No single line of business generates more than 25% of the total

European and Asian business poised for particularly strong growth (based on newly established QIC Europe and Qatar Re’s Singapore office)

Gross premiums, split by region 2014 Gross premiums, split by line of business 2014

WELL DIVERSIFIED PORTFOLIO ENHANCES CAPITAL EFFICIENCY

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

18

Page 19: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Marine and Aviation 2013 2014

Gross premium 88 254

Underwriting Results 13 40

Loss ratio 61% 54%

Operating profit 15.3% 15.6%

Property & Casualty 2013 2014

Gross premium 699 1'096

Underwriting Results 102 120

Loss ratio 59% 64%

Operating profit 14.6% 10.1%

Life & Medical 2013 2014

Gross premium 183 193

Underwriting Results 17 20

Loss ratio 79% 79%

Operating profit 9.4% 10%

2013 2014

Gross premium

189%

2013 2014

Underwriting results

2013 2014

Gross premium

2013 2014

Underwriting results

2013 2014

Gross premium

2013 2014

Underwriting results

STRONG TECHNICAL PERFORMANCE IN A HIGHLY COMPETITIVE ENVIRONMENT

57% 18%

193%

5% 13%

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

in USD million

in USD million

in USD million

19

Page 20: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Investment portfolio composition 2014

Cash23%

Bonds46%

Equities24%

Real Estate

3%

Private Equity & Funds 4%

Investment income composition 2014

Profit on sale of invest-

ments48%

Dividend income

11%

Interest income

19%

Advisory fees 11%

Rental income

5%

Others6%

51% 40% 38% 40% 39%

49% 60% 62% 60% 61%

2010 2011 2012 2013 2014Underwriting income

Investment versus underwriting income

EXCELLENT INVESTMENT YIELD DESPITE LOW INTEREST RATE ENVIRONMENT

Return on Investments

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

20

1,3

85

1,4

60

1,5

29

2,2

76 2,6

28

11

3

14

0

15

2

19

7

28

2

8.1%

9.6% 10.0%8.7%

10.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013 2014

Invested Assets Investment income

Page 21: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

21

FOCUS ON SECTOR BALANCE AND SECURITY OF INVESTMENTS

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

57%10%

10%

8%

4%

4% 3% 2% 2% Financial

Basic Materials

Industrial

Utilities

Consumer, Cyclical

Consumer, Non-cyclical

Communications

Diversified

Energy81%

9%

4.7%3%

2% 0.2%0.1%

QAR

SAR

AED

OMR

KWD

GBP

USD

68%

28%

3% 1%

A- or Better BBB- & AboveNR Below BBB-

31%

30%

21%

13%

3%1% 1%

Qatar ME-ex Qatar

Asia Europe

Africa LATAM

58%

23%

4%

2%2% 2%

9%

Financials Sovereign ExplorationRefining Energy Life InsurancesOthers

Equity: Industry exposure Equity: Currency exposure

Fixed income: Rating Fixed income: Mix by sectorFixed income: Geographic mix

Page 22: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

HEALTHY INCOME CONTRIBUTION FROM QIC ASSET MANAGEMENT

21.024.0 23.8

28.8 30.3

2010 2011 2012 2013 2014

Advisory fee income in USD million

22

9

23

2

24

7

32

7 46

1

11

3 14

0

15

2 19

7

28

2

48.8%

59.6% 61.1% 59.2%61.2%

0.0%

20.0%

40.0%

60.0%

80.0%

0

100

200

300

400

500

2010 2011 2012 2013 2014

Total income Investment income

QIC Asset Management consistently contributes 50-60% to the Group’s total income

Third party asset management has become a growing and sizable source of income

Efficient treasury function managing the liquidity and balance sheet assets and liabilities

Function provides efficient asset and risk diversification to the Group’s balance sheet

Contribution of investment income in % and USD million

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

22

Asset Management

Page 23: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

% 2011 2012 2013 2014

Invested assets to total assets 68% 67% 71% 59%

Invested assets to net technical reserves 366% 329% 339% 188%

Cash and bank deposits to net technical reserves 143% 126% 137% 52%

2010 2011 2012 2013

Eligible Capital 3,413 3,479 4,015 5,026

Solvency Ratio 163% 156% 148% 146%

Solvency: Increased capital utilization, ratio remains strong

163%

156%

148%146%

2010 2011 2012 2013

Solvency ratio

EXCELLENT FINANCIAL STRENGTH RATIOS

Assets

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

23

Page 24: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

2012 2013 2014

Share capital 245.02 352.84 441.04

Legal reserve 127.57 358.32 386.86

General reserve 78.85 78.85 78.85

Catastrophe special reserve 43.71 52.09 62.43

Fair value reserve 182.28 206.28 165.11

Retained earnings 317.18 376.75 432.95

Equity attributable to parent 994.60 1,425.12 1,567.25

Non-controlling interest 47.32 53.36 60.09

Total equity 1,041.93 1,478.49 1,627.34

STRONG FINANCIAL STRENGTH RATINGS

Financial strength rating for QIC

QIC Group equity in USD million

Rating: A – strong Outlook: stable

o “We view QIC as an increasingly diversified insurance group with relatively mature operations in the still-growing Gulf Cooperation Council region, and with rapidly expanding reinsurance operations in Europe.”

Rating: A – excellent Outlook: stable

o “The ratings for Qatar Insurance Company S.A.Q. (QIC) reflect its very strong risk-adjusted capitalisation, robust underwriting performance and global business diversification.”

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Page 25: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Organisation

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Dubai

25

Page 26: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

26

STRONG GEOGRAPHIC AND SECTOR DIVERSIFICATION

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Asset Management

BERMUDA

ZURICH

DOHA

SINGAPORE

LONDON

EXPERIENCED FOR THE FUTURE QATAR RE WORLDWIDE

LATEST NEWS PRODUCTS & SERVICES QATAR RE HUBS

QATAR RE

ANNOUNCES NEW

MANAGEMENT TEAM

Doha, Qatar – 13 May 2013

Lorem ipsum dolor sit amet consectetur

adipiscing elit videst empera de quae

aceribus volestibus adigendelita.

READ MORE READ MORE READ MORE

Qatar Re supports its clients with lead

quotations based on proprietary pricing

capabilities and superior underwriting skills.

Legals ©2014, Qatar Re. LLC

HOME QATAR RE HUBS

Doha

London

Zurich

ABOUT US

Introduction

Management

Corporate Strategy

Capitalization & Ratings

Risk Management

Regulatory Notice

The QIC Group

Careers

NEWS & MEDIAPRODUCTS

Agriculture

Credit & Survey

Energy

Engineering

Marine & Aviation

Motor XL

Property

CONTACT US

SEARCH JOINLOG IN

HOME ABOUT US PRODUCTS QATAR RE HUBS NEWS & MEDIA CONTACT US

“WE ARE COM M I TTED TO BUI LDI NG THE FI RST GLOBAL REI NSURANCE FRANCHI SE, BASED ON

EM ERGI NG M ARKET CAPITAL”

GUNTHER SAACKE

Chief Executive Of cer

Group level

Operations

Direct Insurance:

• Personal Lines• Commercial

Lines

Qatar

GCC

Europe

Reinsurance:

• Property & Casualty

• Facultative Lines

Global

Specialty Re/insurance:

• Commercial Lines

Global

Direct Insurance:

• Medical Lines

• Life Lines

Qatar

GCC

Direct Insurance:

• Asset Management

Global

Sector

Geography

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Risk Management

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Abu Dhabi

27

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STRICT ADHERANCE TO CLEARLY DEFINED ERM PROCEDURES

1. Establishing Goals: Risk Appetite & Tolerance statement, Strategy & Business Plan for the year

2. Identifying Risks: Risk Registers

3. Analyzing Risks: Risk Score

4. Prioritizing Risks: Risk Prioritization Matrix

5. Risk Mitigation: Control Analysis 6

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o ERM is broken down into Risk Management, Capital Management and Exposure monitoring

o Governance structure follows the three lines of defence model with dedicated Risk Committees in each entity of the company

o Each entity committee reports into the group’s risk steering committee, which reports to the Group’s Board and Audit committee

o Risks are monitored and maintained according to risk categories such as insurance, market, credit, operational and group

o Each risk is assessed for impact and probability along with the controls in place to mitigate

o Risk are reviewed quarterly

o QIC has in place a full-blown stress and scenario framework

o QIC conducts analysis into emerging risks

o Risk appetite and tolerance set at the group and entity level with the position against these metrics being monitored on an on-going basis

Risk Management at QIC Enterprise risk management cycle

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

28

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Outlook

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Muscat

29

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Re/Insurance, 39%

Investments, 54%

Third Party Asset Management, 7%

ASPIRING TO BECOME A GLOBAL TOP 50 COMPOSITE INSURER

Well-diversified business mix

Motor25%

Health / Life12%

Property15%

Energy12%

Marine17%

Liablity5%

Agriculture5%

Others9%

Balanced geographical mix

Domestic24%

Regional17%

Inter-national

59%

Distinct sources of income

A portfolio of powerful franchises

Continue to capitalize on transactional opportunities

Grow QIC Europe

Expand into Asia / Pacific on the back of Qatar and Antares

Further grow medical and life lines in the domestic and regional market

Further build 3rd party investment capabilities

Continue to generate investment income above index and peers

QIC Europe Ltd: Become a common platform for QIC’s entrée into the European insurance markets

Use synergies with Qatar Re in reinsurance and Antares in specialty insurance

Qatar Re: Leverage acknowledged market and product expertise to expand on a global scale, broaden product offering

Antares: Capitalize on Lloyd’s expansion and leverage synergies with Qatar Re

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

30

Asset Management

BERMUDA

ZURICH

DOHA

SINGAPORE

LONDON

EXPERIENCED FOR THE FUTURE QATAR RE WORLDWIDE

LATEST NEWS PRODUCTS & SERVICES QATAR RE HUBS

QATAR RE

ANNOUNCES NEW

MANAGEMENT TEAM

Doha, Qatar – 13 May 2013

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READ MORE READ MORE READ MORE

Qatar Re supports its clients with lead

quotations based on proprietary pricing

capabilities and superior underwriting skills.

Legals ©2014, Qatar Re. LLC

HOME QATAR RE HUBS

Doha

London

Zurich

ABOUT US

Introduction

Management

Corporate Strategy

Capitalization & Ratings

Risk Management

Regulatory Notice

The QIC Group

Careers

NEWS & MEDIAPRODUCTS

Agriculture

Credit & Survey

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CONTACT US

SEARCH JOINLOG IN

HOME ABOUT US PRODUCTS QATAR RE HUBS NEWS & MEDIA CONTACT US

“WE ARE COM M I TTED TO BUI LDI NG THE FI RST GLOBAL REI NSURANCE FRANCHI SE, BASED ON

EM ERGING M ARKET CAPITAL”

GUNTHER SAACKE

Chief Executive Of cer

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Appendix

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Kuwait

31

Page 32: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

Income Statements (QAR ‘000) 2010 2011 2012 2013 2014Growth (YOY)

CAGR

Gross Written Premium 2,153,082 2,383,050 2,558,597 3,531,707 5,613,767 59% 21%

Net earned premium 1,117,869 1,320,898 1,494,639 1,974,085 3,678,344 86% 27%

Net claims incurred (584,857) (859,397) (1,021,337) (1,280,266) (2,394,403) 87% 33%

Net commission (107,274) (123,072) (130,079) (211,301) (620,093) 193% 42%

Net underwriting income 425,738 338,429 343,223 482,518 663,848 38% 9%

Investment and Other Income 410,625 508,541 555,367 719,622 1,027,488 43% 20%

G&A Expenses (213,799) (243,916) (278,935) (423,783) (665,926) 57% 26%

Net profit 622,564 603,053 619,655 778,357 1,025,410 32% 10%

PROFIT AND LOSS ACCOUNTS, 2010 – 2014

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

32

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Balance Sheets (QAR ‘000) 2010 2011 2012 2013 2014

ASSETS

Cash and cash equivalents 1,736,116 2,080,719 2,123,876 3,351,905 2,646,907

Insurance and other receivables 549,214 629,738 703,395 1,164,615 2,820,028

Reinsurance contract assets 1,616,287 1,805,429 1,950,278 2,151,318 3,251,457

Investments 2,922,210 2,781,968 3,003,506 4,543,881 6,545,147

Investment properties 384,726 453,224 438,636 387,197 375,070

Property and equipment 28,592 26,142 31,890 33,592 38,665

Intangible assets -- -- -- -- 274,895

Goodwill -- -- -- -- 145,111

TOTAL ASSETS 7,237,146 7,777,220 8,251,581 11,632,508 16,097,280

Liabilities

Short term borrowings 229,200 182,000 -- 746,200 182,000

Insurance contract liabilities 2,739,803 3,259,700 3,640,986 4,594,615 8,331,014

Provisions, reinsurance and other payables 746,000 806,657 817,982 910,005 1,660,759

Total liabilities 3,715,002 4,248,357 4,458,968 6,250,820 10,173,773

Equity

Share capital 743,244 743,244 891,891 1,284,323 1,605,404

Reserves & Surplus 2,595,375 2,596,117 2,728,463 3,903,131 4,099,379

Minority interest 183,532 189,502 172,259 194,234 218,724

Total equity 3,522,151 3,528,864 3,792,613 5,381,688 5,923,507

TOTAL LIABILITIES & EQUITY 7,237,154 7,777,220 8,251,581 11,632,508 16,097,280

BALANCE SHEETS, 2010 – 2014

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

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QATAR: A THRIVING ECONOMY9

7.5

8

12

5.1

2 16

9.8

18

9.9

5

20

2.4

5

16.70%

13.00%

6.10% 6.50% 6.50%

2.00%

6.00%

10.00%

14.00%

18.00%

0

50

100

150

200

250

2010 2011 2012 2013 2014**

GDP Growth rate

GDP and real GDP growth in USD billion*

*Source: IMF 2014, ** Projections

Budget surplus 9.1% per annum over the past 5 years

Highest credit rating in the GCC S&P: AA; Moody’s: Aa2

Strong population growth Tripled since 2003, 2.6 million by 2016

World‘s highest GDP per capita USD 106‘000 in 2013

45% 53%58% 57% 54%

55%47%

42%43% 46%

2009 2010 2011 2012 2013

Hydrocarbon Non-Hydrocarbon

98125

170190 202

Hydrocarbon vs. Non-hydrocarbon sectors in GDP*

Hydrocarbon reserves ≈ USD 25 trillion

World largest exporter of LNG 77 million tonnesper annum

Investments into infrastructure ≈ USD 150 billionby 2020

National Rail Project ≈ USD 35 billion

*Source: QSA

Strong fundamentals Diversifying the economy

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

34

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QATAR’S GROWING INSURANCE SECTOR

773878

1,197

1,516

1,994

2009 2010 2011 2012 2013

Total premiums in USD million*

*Source: Swiss Re SIGMA

Insurance Penetration 2013

Source: Swiss Re, Central Bank of Bahrain, EIU Country Data via BVDep

Qatar Central Bank (QCB) was established as Qatar’s competent supreme authority in 2012

QCB has responsibility for the design and implementation of policies relating to the regulation, control and supervision of financial services and financial markets in Qatar

QCB pursues a consistent risk-based micro-prudential framework in line with global regulatory standards under development

QIC International and Qatar Re are regulated by the Qatar Financial Centre Regulatory Authority, which is in charge of the insurance sector regulation, reporting to the QCB

Insurance regulation

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

35

BahrainChina

Germany

India

Japan

KuwaitOman Qatar

KSAUAE

UK

USA

0%

2%

4%

6%

8%

10%

12%

1,000 10,000 100,000

Pre

miu

ms

as %

of

GD

P

GDP per Capita (Log scale) in USD

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36

GLOBAL INSURANCE: POTENTIAL INTACT, THOUGH GROWTH IS SUBDUED

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

Global Insurers solvency change in % Insurance Penetration in%

Source: Swiss Re sigma, 2014

Sou

rce:

Sw

iss

Re

sigm

a, 2

01

4

Source: Swiss Re sigma, 2014

Source: Swiss Re sigma, 2014

Premium growth in % Insurers’ underwriting results and RoE in%

Page 37: Qatar Insurance Group - Amazon S3€¦ · Qatar Re established 50th Anniversary and acquisition of Antares MENA: QIC No 1 of 116 companies Asia Pacific: QIC No 12 of 264 –excl.

THE QIC MANAGEMENT TEAM

Khalifa A. Al SubaeyGroup President & CEO

Sunil TalwarDeputy Group CEO

Ali Saleh Al FadalaSr. Deputy Group CEO

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

37

P.E. Alexander Qatar Operations

Ewen McRobbieOman QIC

Gunther SaackeQatar Re

Sandeep Nanda Investments & Strategy

Fahad Al ManaQICI

Stephen RedmondAntares

Varghese David Finance & Operations

KG VenkatUAE Operations

Salem Al-MannaiQ-Life &

Medical Insurance

Nasser Al-MisnadDamaan

Islamic Insurance

Darren CollinsonKuwait QIC

Andy RossQIC Europe

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Sheik Khalid binMohammed

bin Ali Al-ThaniChairman &

Managing Director

Abdullah bin Khalifa

Al-AttiyaDeputy

Chairman

HussainIbrahim Al-

Fardan Board Member

Sheik Hamadbin Faisal bin

Thani Al ThaniBoard Member

JassimMohammed

Al-JaidahBoard Member

Khalaf Ahmed Al-Mannal

Board Member

Sheik Jassimbin Hamad bin

Jassim bin Jabor Al Thani

Board Member

Sheik Khalid bin Hamadbin Khalifa

Al-ThaniBoard

Member

Saoud bin Khalid bin Hamad Al

Thani Board Member

THE QIC BOARD OF DIRECTORS AND MAJOR SHAREHOLDERS

QIC shareholders in %

o Government of 13.5%Qatar

o Qatari Royal 10-15%Family and Associates

o Foreign 5%Institutional Investors

o Free Float Remainder

Khalifa A. Al Subaey Group

President & CEO

At a Glance Strategy Competitive Position Performance Organisation Risk Management Outlook Appendix

38