Qatar Insurance Company (QIC) Group yesterday said its global expansion and diversification strategy are progressing according to well laid plan, with the latest acquisition being the Gibraltar-based Markerstudy Group, a top official has said.
“The Markerstudy transaction is yet another important milestone on our journey towards becoming a global Top-50 insurance group. Meanwhile, we have successfully repositioned Qatar Re as a global player and Antares as our Lloyd’s specialty platform. Including the Markerstudy companies, the share of QIC Group’s non-Mena (Middle East and North Africa) business will soon exceed 80%,” said Khalifa Abdulla Turki al-Subaey, QIC Group president and chief executive.
The main strategic attraction of this “unique” deal is the addition of a sizeable lower volatility book of the UK motor insurance business with predictable and long-term profitability, he said.
“Through our subsidiaries Qatar Re and Antares, we are well positioned to benefit from any cyclical upturn in global specialty and other non-motor (re)insurance markets. The Markerstudy transaction will enable QIC Group to continue writing UK business under any post-Brexit scenario,” he added.
QIC Group’s reinsurance arm Qatar Re had early this month announced the acquisition, subject to regulatory approvals, of Markerstudy Group’s insurance companies, namely Markerstudy Insurance Company, Zenith Insurance, St Julians Insurance Company and Ultimate Insurance Company. Markerstudy underwrites more than 5% of the UK motor insurance market, generating annual premiums of about £750mn.
“A carefully managed exposure to the UK motor market adds lower-volatility business that balances Qatar Re’s more volatile reinsurance lines,” it said, adding as part of the transaction, QIC Group and Markerstudy would enter into a long-term deal under which Markerstudy’s underwriting agencies in the UK will continue to exclusively write the existing business into the Gibraltar-based insurance companies and potentially develop new products. QIC Group has an existing substantial relationship with Markerstudy through Qatar Re and QIC Europe.
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