Qatar Insurance Profit Resilient Despite Geopolitical Turmoil

Qatar Insurance Company SAQ (DSMD:QATI) reported a resilient first half in 2026, achieving a net profit of QAR365 million, a performance close to the prior year's results. This stability was maintained despite the presence of a significant regional geopolitical conflict that impacted operations.

Insurance revenue saw a substantial increase of 15%, reaching QAR4.8 billion. This growth was primarily fueled by expansion in the UE medical business and contributions from international operations. The company's diversified business model proved effective in absorbing the conflict's estimated QAR50 million net impact, utilizing existing reserves and benefiting from stronger results in other business areas.

Investment income also contributed positively, growing by 2.8% to QAR477 million, with the investment portfolio remaining diversified and high-quality. The company maintained a strong capital position, with its QCP solvency ratio holding steady at approximately 200% as of June 30, 2026.

However, the regional conflict did result in an 8.4% decline in the insurance service result to QAR202 million. The combined ratio under IFRS rose to 94.7%, reflecting underwriting challenges. Gross written premium growth slowed to 4.3% in the first half, with a notable deceleration in the second quarter compared to the first. The ultimate cost of the conflict remains uncertain, posing a potential risk to future financial performance.