AM Best Reaffirms Qatar Islamic Insurance Group’s Strong Ratings
Qatar Islamic Insurance Group (QIIG) has once again secured its position as a stable and reliable player in the Takaful insurance space, following the reaffirmation of its “A-” (Excellent) Financial Strength Rating (FSR) and “a-” (Excellent) Long-Term Issuer Credit Rating (ICR) by AM Best. Both ratings carry a stable outlook, underscoring the company’s consistent performance, disciplined risk management, and solid financial footing.
This recognition by AM Best is a strong validation of Qatar Islamic Insurance Group’s operational efficiency, conservative underwriting, and strategic financial management. The company continues to deliver favorable results, strengthening its reputation in the competitive Islamic insurance market.
Qatar Islamic Insurance Group Demonstrates Financial Strength
QIIG reported a gross written premium (GWP) of QAR 551.2 million (USD 157.4 million) in 2024, reflecting sustained business volume and stable income in a competitive market.
According to AM Best, Qatar Islamic Insurance Group’s balance sheet strength remains a major driver of its rating. The company maintains a low underwriting leverage, backed by a robust reinsurance program and a conservatively managed investment portfolio. These elements collectively support QIIG’s solvency and long-term financial sustainability.
The company’s strong liquidity position and well-executed asset-liability management strategy further fortify its ability to withstand economic pressures—ranging from inflation to market fluctuations and regulatory shifts in Qatar’s financial sector.
Qatar Islamic Insurance Group Shows Consistent Profitability
From 2020 to 2024, QIIG recorded an average combined ratio of 73.1%, significantly below the 100% break-even mark. This indicates that the company consistently generates technical underwriting profits, exclusive of investment income.
This ratio demonstrates Qatar Islamic Insurance Group’s disciplined underwriting approach, allowing it to properly assess risk, price policies accurately, and manage claims efficiently. QIIG’s focus on selective underwriting and customer segmentation has been central to its strong operating results.
Moreover, the company posted an average Return on Equity (ROE) of 16.6% over the same period—highlighting its ability to deploy capital effectively and deliver value to shareholders, even amid macroeconomic and geopolitical challenges.
Qatar Islamic Insurance Group’s Business Profile Remains Focused
AM Best recognizes QIIG’s strengths but notes that its business profile remains somewhat limited. The insurer primarily operates in Qatar’s domestic Takaful market, with a focus on both general and family Takaful offerings. While this concentration allows QIIG to leverage local market expertise and brand recognition, it also exposes the firm to localized economic and regulatory risks.
Despite this, Qatar Islamic Insurance Group benefits from a strong brand reputation, a loyal customer base, and an extensive distribution network across Qatar. The company’s adherence to Shariah principles continues to appeal to policyholders seeking ethical and compliant insurance solutions.
Although QIIG’s geographic and product diversification is modest in comparison to regional peers, the company has shown resilience and consistent financial delivery in a rapidly evolving global insurance environment.
Qatar Islamic Insurance Group Maintains Strong Risk Management Practices
A key pillar in AM Best’s evaluation is QIIG’s enterprise risk management (ERM) framework. The company employs formal risk controls, periodic stress testing, and internal monitoring mechanisms to identify and mitigate risks across underwriting, investments, operations, and regulatory compliance.
This structured risk approach allows Qatar Islamic Insurance Group to proactively manage market and operational exposures while maintaining regulatory compliance and capital adequacy. In particular, the firm’s low-risk investment strategy, centered on capital preservation and liquidity, has helped insulate it from global economic shocks and inflationary pressures.
Qatar Islamic Insurance Group Positioned for Strategic Growth
The stable outlook attached to QIIG’s current ratings indicates that AM Best expects continued consistency in the company’s credit fundamentals. For QIIG to maintain or improve its rating, it will need to sustain strong underwriting results, reinforce its risk management culture, and preserve capital strength.
Looking ahead, Qatar Islamic Insurance Group has opportunities for expansion—whether by entering new markets within the GCC or by offering more specialized and digital Takaful products. Diversifying beyond its current footprint would reduce concentration risk and enhance its competitive position in the regional Takaful and insurance space.
Conclusion: Qatar Islamic Insurance Group’s Ratings Reflect Stability and Opportunity
AM Best’s reaffirmation of QIIG’s “A-” rating reflects the company’s solid profitability, capital adequacy, and effective risk management. As a prominent Shariah-compliant insurer in Qatar, Qatar Islamic Insurance Group continues to uphold Islamic finance principles while pursuing sustainable growth and stakeholder value.
In an insurance market that is rapidly evolving both regionally and globally, QIIG’s performance serves as a strong example of a well-managed, resilient, and forward-looking Islamic insurance provider.
