Doha and Monte Carlo - Qatar Re continues on its growth path despite the current oversupply in reinsurance capacity. In the first half year of 2015, the Company increased its Gross written premiums to US$ 463.6 million, up 42% from US$ 326.7 million for the same period in 2014. Gross underwriting income for the first half-year 2015 was US$ 40.4 million, against US$ 28.1 million for the same period in 2014. Net profit came in at US$ 13.4 million, compared with half year net income of US$ 16.0 million in 2014.
Gunther Saacke, Qatar Re's Chief Executive Officer, commented: "Robustly positioned in the increasingly challenging market environment Qatar Re continues to benefit from a strong and fully committed capital base. Our strategy mix is responding well to the sharply increasing volatility in the general economic environment as to the continuously aggravating mismatch of demand and supply that is prevailing especially in the capital intense sectors of our industry. The combination of class intimacy, proximity to our business partners and uncompromised focus on the disciplines of managing and controlling risk forms the bedrock of our successful development to date and into the future."
Having engaged in a radical, fully comprehensive transformation from a regional follower into a full-fledged global reinsurer, the Company achieves controlled portfolio growth across three generic types of practice and product delivery. At less than 20% of its total portfolio, the firm's presence in the commodity and transactional market accounts for the smallest of these three areas, with price adequacy and portfolio efficiency being the most critical value drivers. A second generic type of business that makes up for some 30% of the book is focussed on insurance entrepreneurs, including Lloyd's Syndicates. Best described as project-based opportunities here Qatar Re provides proportional capacity. The value drivers in this segment are privileged access to business, superior product know-how, innovative distribution or a combination thereof. Almost half of the Company's growth over the last 12 months was generated in this area. Finally Qatar Re serves the markets where clients have outstanding technical capabilities and require corresponding levels of technical expertise and specialty lines know-how on the part of their reinsurer. Generally less price sensitive than the highly commoditized product classes, here the added value is driven by class specific expertise delivered in close cooperation with Qatar Re's business partners, its clients and brokers.
Successfully operating across these three types of practice, Qatar Re continues to follow its growth path, effectively defying the adverse trends in what has become a notoriously deteriorating "soft market".
Technical expertise and analytical capabilities
Qatar Re's distinct underwriting approach rests on the strength of the Company's underwriting team. Equally experienced and technically skilled, the team has built an exceptionally strong client franchise. Qatar Re focuses on cedants with a long-term horizon and knowledge-intensive needs. As such, Qatar Re does not track the market. It rather emphasizes specialty lines, where it can fully bring to bear its technical expertise and analytical capabilities. Therefore, the Company is underweight in standard property and casualty business.
Geographic proximity is essential to Qatar Re clients' approach. Since 2013, the Company opened branch offices in Zurich and Bermuda, as well as representative offices in London and Singapore. Through its parent, the QIC Group, Qatar Re has access to a primary license in Malta. A further branch office in Dubai is in the application process.
Earlier this month the Company announced its intention, subject to regulatory approval(s), to move its domicile from the Qatar Financial Centre to Bermuda, in order to consolidate capital, further enhance its international scope of business and strengthen its organisation. Currently, Qatar Re writes about 50% of its business in Europe. The Americas account for 28% of the book, Asia for another 20% and the Middle East and Africa for the remainder.
Outlook
Qatar Re expects that the current trading conditions characterised by excess capacity and low interest rates will persist in the coming renewals. The Company will continue to drive forward its diversification strategy by line of business and geography. It will further de-emphasize standard property & casualty risks and sharpen its focus on knowledge-intensive specialty (including liability) business. Qatar Re intends to strengthen its presence in Asia and in the Americas, while maintaining its footprint in Europe and the Middle East. Overall, the Company will offer more capacity per line and lead quotations on important large placements.
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About Qatar Re
Qatar Re is a global multi-line reinsurer writing all major property and casualty and specialty lines of business. We serve our clients through teams of seasoned underwriting and financial professionals combining in-depth technical and business expertise with industry experience across all international markets. Our clients value us for our technical expertise, outstanding service, industry thought-leadership and customer focus. At Qatar Re, we are close to the world's major reinsurance markets and our clients' core operations through our headquarters in Doha, branch offices in Zurich and Bermuda and representative offices in London and Singapore. Thanks to a robust endowment of capital, we are largely insulated from the turbulence of world financial markets. Our cedants gain a highly secure form of instant diversification for their reinsurance panels as a result. Qatar Re is backed by a full parental guarantee by QIC, and benefits from QIC's substantial and growing capital base. QIC was capitalized at USD 1.6 billion as at 30 June 2015, and has a market capitalization in excess of USD 4.5 billion. The Company is authorized and regulated by the Qatar Financial Centre Regulatory Authority (QFCRA). Qatar Re is rated "A/Stable" by Standard and Poor's and A (Excellent) by A. M. Best. For further information on Qatar Re please visit www.qatarreinsurance.com.
About Qatar Insurance Company
Qatar Insurance Company (QIC) is a publicly listed composite insurance group with a consistent performance history of over 50 years and a global underwriting footprint. Founded in 1964, QIC was the first domestic insurance company in the State of Qatar. Today, QIC is the market leader in Qatar and a dominant insurer in the MENA region. QIC is one of the highest rated insurers in the Gulf region with a rating of A/Stable from Standard & Poor's and A (Excellent) from A.M. Best. QIC is also the largest insurance company in the MENA region by gross premiums, profitability, total assets and market capitalization. It is listed on the Qatar Exchange and has a market capitalization in excess of USD 4.5 billion. For further information on QIC, please visit www.qatarinsurance.com.
Contact:
Dr. Schanz, Alms & Company AG
Henner Alms, P: +41 44 256 1082, E: henner.alms@schanz-alms.com
Kai-Uwe Schanz, P: +41 44 256 1081, E: kai-uwe.schanz@schanz-alms.com
© Press Release 2015
