Page 2 His Highness Sheikh Tamim bin Hamad Al-Thani The Emir of State of Qatar Page 4 Table of Contents Group Structure 11 Key Information 12 Group Vision and Statement of Values 14 Chairman and MD’s Message 17 Board of Directors 21 Board of Directors’ Report 23 History & Heritage 25 Timeline from 1964-2014 28 Group President & CEO’s Message 31 Management Team 35 QIC Group’s Subsidiaries 37 QIC’s 50th Year Event Celebration 49 Corporate Social Responsibility 53 QIC’s Share Performance in 2014 59 Business Performance Overview 61 Insurance 62 Investments 63 Financial Strength 64 Independent Auditor’s Report 67 Consolidated Financial Statements 69 QIC Group’s Global Footprint 133 Page 6 QIC Group Structure & Key Information Page 8 Page 9 Group Structure Direct Reinsurance Lloyd’s Life & Asset Real Market Medical Manage- Estate ment Life and Qatar Economic Qatar Insurance Medical Advisors Company Real Estate QIC Capital QIC International Epicure Managers QIC Dubai Qatar Ltd. QIC Abu Dhabi CATCo Investment Management Ltd. KQIC Kuwait CATCo-Re Ltd. OQIC Oman LCP Holdings Ltd. QICI Malta Taleem Advisory Ltd. QIC Europe Page 10 Page 11 Key Information QIC QR Million 2014 2013 2012 2011 2010 Gross Premiums Written 5,614 3,532 2,559 2,383 2,153 Underwriting results 664 485 343 338 426 Net profit attributable to parent 1,001 753 610 592 590 Investment Income 1,027 717 555 509 411 Cash and Investments 9,567 8,283 5,566 5,316 5,043 Return on equity (%) 18.4 17.1 17.5 17.7 19.1 Total Assets 16,097 11,633 8,251 7,772 7,237 Equity attributable to parent 5,705 5,187 3,620 3,339 3,339 Our Shares 2014 2013 2012 2011 2010 Earnings per share (QR)* 6.24 4.69 3.80 3.69 3.67 QIC market capitalisation (QR Mn) 14,545 8,541 6,056 5,782 6,206 Dividend per share (QR) 2.5 2.5 2.5 4 6.5 Bonus Share (%) 15% 25% 20% 20% 0 Share price at 31 December (QR) 90.6 66.5 67.9 77.8 83.5 Book value per share (QR) 36 40.39 40.59 44.98 44.97 *Restated for the effect of issuance of Bonus Shares Financial Strength Rating Standard and Poor’s A.M. Best Page 12 Page 13 The Group’s Vision of the future is to maintain our drive for growth and excellence through innovation, Group’s Vision diversification and responsible & Statement leadership. By means of existing of Values and new strategic alliances and Chairman partnerships we aim to create the optimum framework for continuous & Managing profitable development. Director’s At QIC Group we value each employee and acknowledge their own distinctive contribution. Message We value their effort, their enterprise, their contribution and opinions. Our Group is being built on teamwork, respect, and mutual trust. Each person, at whatever level she or he may operate, is empowered and will therefore make their own unique contribution. Each employee is encouraged to be responsible for their own actions. We encourage positive contribution, acknowledge innovation and reward excellence. We encourage a safe workplace, comply with all laws and regulations and strive to meet the expectations and requirements of our customers. We value our customers as trusted partners. We value constructive feedback and candid comment. We endeavour to absorb these into our business model. Honest criticism is accepted as a valued contribution to our organisation. We meet our obligations to shareholders, customers, employees and society. Page 14 Page 15 Chairman & Managing Director’s Message Dear Valued Shareholders, With immense pride and pleasure, I present to you our Annual Report for the year ended 31 December 2014. In this report, we highlight our financial outcomes and prominent developments during 2014. We also elucidate what we hope to achieve in 2015 as we continue towards our objective of obtaining the highest returns for our shareholders and the best products and services for our clients by enhancing our status and performance as the most trusted insurance Group in Qatar and in the “A true testament to QIC’s MENA region. success lies in its business The year 2014 was truly remarkable as it marked philosophy - to create value fifty years of our operation in the Qatari soil. Recapitulating our journey from the humble and maintain credibility, beginnings at Souq Waqif to the prominent QIC which your Company has building in West Bay where we are headquartered, we feel a sense of accomplishment for reaching been following for over half such a significant milestone. Through these fifty a century. Your Company has years, we have exuded operational excellence and always been acknowledged have carved a niche’ for ourselves in the history of Qatar’s insurance industry, thus contributing for its first-class business positively towards boosting Qatar’s insurance performance and outstanding sector. service delivery.” Page 16 Page 17 In 2014 QIC achieved a net profit of QAR 1001 million, local and regional operations (direct insurance) as a reflecting an increase of 33% on the previous year’s result of the upcoming infrastructure development performance. The return on equity reached 18.5%, projects planned across the region. while earnings per share increased from QAR 4.69 to QAR 6.24. On behalf of the Board of Directors, I would like to express my sincere appreciation and gratitude to Besides recording year-on-year profits, the Group His Highness Sheikh Tamim bin Hamad Al Thani, was highly successful in acquiring the Antares the Emir of the State of Qatar for his visionary Group of companies in a deal which was worth leadership and guidance. more than QAR one billion. Antares along with the Group’s reinsurance arm Qatar Re constitutes the Finally I reaffirm that QIC Group while achieving its key pillars of the Group’s international operations, current and future goals will contribute significantly representing approximately 60% of the overall to the national economy of Qatar, as a part of the Gross Written Premiums at the Group level. nation’s march towards development, progress and fulfillment of Qatar National Vision 2030. While outlining business plans for the next year, Board of the Group has also taken into consideration the Sheikh Khalid bin Mohammed bin Ali Al-Thani targeted expansion in international and reinsurance Chairman & Managing Director Directors’ activities, in addition to the expected growth in Report Page 19 Board of Directors Sheikh Khalid bin Mohammed Mr. Abdulla bin Khalifa bin Ali Al-Thani Al-Attiya Chairman & Managing Director Deputy Chairman Mr. Hussain Ibrahim Al-Fardan Mr. Jassim Mohammed Al-Jaidah Sheikh Hamad bin Faisal Board Member Board Member bin Thani Al-Thani Board Member Mr. Khalaf Ahmed Sheikh Jassim bin Hamad Sheikh Khalid bin Hamad Sheikh Saoud bin Khalid Al-Mannai bin Jassim bin Jabor Al-Thani bin Khalifa Al-Thani bin Hamad Al-Thani Board Member Board Member Board Member Board Member Mr. Khalifa Abdulla Turki Al Subaey Group President & CEO Page 20 Page 21 BoardGroup’s of Vision Board Directors& Statement of Directors’ of Values Report As Qatar’s leading insurance Company, we take pride in insuring the nation’s growing infrastructure. In 2014, your Company was proud to lead a six-member consortium of Qatari insurance companies awarded the contract to provide insurance for the construction of Qatar’s integrated rail network- one of the largest single project tunneling and rail construction projects ever embarked upon. Other significant infrastructure projects in which your Company played an important role include the new Hamad International Airport. As a provider of choice in the insurance and reinsurance sectors, your Company has been successful in The directors of Qatar Insurance Company (QIC) are maintaining and developing its prominent position th pleased to present the 50 Annual Report together not only in Qatar, but across the wider MENA region. with the audited financial statements for the year Moreover, through the increased diversification of its ended December 31, 2014 and the business forecasts personal lines offering, your Company continues to be for the year 2015. well placed to meet the insurance needs of all its valued Under the leadership of His Highness the Emir, customers. Importantly, 2014 has been a year in which Sheikh Tamim bin Hamad Al-Thani, Qatar continues your Company has continued to focus on providing steadfastly on its long-term path of sustainable its customers with enhanced service delivery, product economic diversification from hydrocarbons, which innovations and enhancements. This is reflected in the in the past few years has been the primary driver of Company having launched the nation’s first loyalty tremendous economic growth. program “U-Club”. This new and exciting initiative offers a host of benefits to the Company’s customers In preparation for the FIFA 2022 World Cup, the Qatar to thank and reward them for their continued loyalty Government’s investments in large-scale infrastructure and trust. projects is reaching its peak and is driving the economy towards achieving the strategic objectives set out in In line with its channel strategy to reach out to new the Qatar National Vision 2030. Insurance companies customers and grow its existing customer base, in 2014, have a very important role to play in this expansion your Company established new branches in strategic and are becoming an ever more significant part of locations to enhance its service level standards and Qatar’s economy. become more accessible to its customers. The 2014 year will always be cherished as a significant For the QIC Group, the quality, diversity and balance year as your Company celebrated 50 years of of the risk pool is critical to value creation and operational excellence.