Qatar Re, the reinsurance subsidiary of Qatar Insurance Company (QIC) Group, is acquiring Gibraltar-based Markerstudy Group insurance companies.
The companies proposed to be acquired are Markerstudy Insurance Company, Zenith Insurance, St Julians Insurance Company and Ultimate Insurance Company.
The transaction is subject to regulatory approvals and is expected to be completed in the first half of 2018. However, the financial size of the proposed deal has not been disclosed.
Qatar Re has signed a sales purchase agreement to buy Markerstudy’s Gibraltar-based insurance firms.
Markerstudy underwrites more than 5% of the UK motor insurance market, generating premiums of about £750mn.
The QIC Group has an existing substantial relationship with Markerstudy through Qatar Re and QIC Europe (QEL).
“This deal allows QIC Group to grow its lower volatility business while leveraging our existing success in QEL,” according to Khalifa al-Subaey, QIC Group president and chief executive.
He said it is natural next step in the strategy it has pursued over recent years in relation to the group international businesses, which diversifies QIC’s overall portfolio.
“This transaction builds on the strong foundation of our existing relationship. It provides Qatar Re with a greater share of lower volatility business that has performed consistently well for us, balancing our specialty and catastrophe book,” Gunther Saacke, Qatar Re’s chief executive said.
In addition, the transaction would enable Qatar Re to write UK business under any post-Brexit scenario, he said, adding through this acquisition, it reaffirms its commitment to supporting innovative entrepreneurship in insurance marketing, distribution and servicing.
Qatar Re, licensed as a Class 4 Insurer by the Bermuda Monetary Authority, is a global multi-line reinsurer writing all major property, casualty and specialty lines of business.
“This strategic alliance has three-fold benefits; it enables us to simplify our product offering and processes for our intermediaries and broker partners; it provides us with A rated capital backing, and ensures we maintain the continuity of marketing, distribution, service and support,” said Kevin Spencer, chief executive of Markerstudy Group.
Stressing that for a long time, Markerstudy has had a tremendous relationship with Qatar Re; he said their proactive approach has assisted its development and “this is a natural evolution; to combine our strengths to establish a primary player in the UK insurance sector.”