Qatar Insurance
QATI
QATI
A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit ratings of “a” of Qatar Insurance Company S.A.Q. (QIC) and its main subsidiaries: QIC International LLC (QICI) and Qatar Reinsurance Company LLC (Qatar Re), according to Market Watch.
The outlook for all ratings remains stable. All companies are domiciled in Qatar.
The ratings for QIC reflect its very strong risk-adjusted capitalisation, robust underwriting performance and global business diversification. Offsetting rating factors are QIC’s concentration in Qatari equities and the execution risk associated with the rapid growth of group, particularly within its reinsurance arm.
QIC’s risk-adjusted capitalisation remains very strong, despite considerable additional capital requirements created by the acquisition of Antares Holdings Limited (Antares) and the rapid expansion of Qatar Re. Prospective risk-adjusted capitalisation is expected to remain strong, benefiting from a high level of internal capital generation. Additionally, QIC’s supportive shareholders provide the company with good financial flexibility.
The company has a strong track record of operational performance, with a 5-year weighted average return on equity of 17.4%. Underwriting performance remained robust in 2013, with a combined ratio of 93%, which reflected very strong results in QIC’s domestic market. However, performance was dampened by unfavourable reserve developments on losses in prior underwriting years and the high costs of expansion at Qatar Re. QIC’s profit for the year was QAR 778 million (USD 214 million), although profitability remains heavily weighted toward investment income. In the first three quarters of 2014, QIC generated an operating profit of QAR 801 million (USD 220 million) at a combined ratio of 97%, according to A.M. Best.
QIC had announced in November that it will issue “convertible notes” totaling $250 million (about QAR910million) to be offered on global financial markets with the aim of attracting foreign investments into the Qatari market.
The outlook for all ratings remains stable. All companies are domiciled in Qatar.
The ratings for QIC reflect its very strong risk-adjusted capitalisation, robust underwriting performance and global business diversification. Offsetting rating factors are QIC’s concentration in Qatari equities and the execution risk associated with the rapid growth of group, particularly within its reinsurance arm.
QIC’s risk-adjusted capitalisation remains very strong, despite considerable additional capital requirements created by the acquisition of Antares Holdings Limited (Antares) and the rapid expansion of Qatar Re. Prospective risk-adjusted capitalisation is expected to remain strong, benefiting from a high level of internal capital generation. Additionally, QIC’s supportive shareholders provide the company with good financial flexibility.
The company has a strong track record of operational performance, with a 5-year weighted average return on equity of 17.4%. Underwriting performance remained robust in 2013, with a combined ratio of 93%, which reflected very strong results in QIC’s domestic market. However, performance was dampened by unfavourable reserve developments on losses in prior underwriting years and the high costs of expansion at Qatar Re. QIC’s profit for the year was QAR 778 million (USD 214 million), although profitability remains heavily weighted toward investment income. In the first three quarters of 2014, QIC generated an operating profit of QAR 801 million (USD 220 million) at a combined ratio of 97%, according to A.M. Best.
QIC had announced in November that it will issue “convertible notes” totaling $250 million (about QAR910million) to be offered on global financial markets with the aim of attracting foreign investments into the Qatari market.
Source:
Mubasher
