Qatar Re to move HQ to Bermuda
Source: Middle East Insurance Review | Oct 2015
Global multi-line reinsurer Qatar Re has announced its intention to transfer its seat of incorporation from the Qatar Financial Centre (QFC) to Bermuda. The proposed transfer is expected to take place in the last quarter of this year and is subject to regulatory approvals.
In Bermuda, Qatar Re will become a Class 4 reinsurer regulated by the Bermuda Monetary Authority and will merge with the Qatar Insurance Group’s existing Bermuda incorporated reinsurer, Antares Reinsurance Limited. This will result in Qatar Re’s capital base increasing to approximately US$500 million. It will continue to benefit from a parental guarantee from Qatar Insurance Company and the existing ‘A’/Stable and ‘A’ (Excellent) credit ratings from Standard & Poor’s and A.M. Best, respectively.
The reinsurer intends to maintain a presence in the QFC through a branch office, and will continue to operate its existing branch in Zurich and representative offices in London and Singapore. The establishment of a branch office in the Dubai International Financial Centre is awaiting regulatory approval.
Mr Gunther Saacke, CEO, Qatar Re said: “As a global reinsurance franchise, we have to be present in the key reinsurance centres worldwide. Moving Qatar Re’s headquarters to Bermuda will consolidate capital and further enhance the international scope of our business and proximity to our clients.”
Qatar Re’s gross premiums grew by 42% y-o-y to $463.6 million in the first half of 2015, despite the current oversupply in reinsurance capacity. Gross underwriting income for the first half was $40.4 million, against $28.1 million for the same period in 2014. Net profit amounted to $13.4 million, a fall of 16% from the first half of 2014.
The company is ranked among the top 50 global reinsurers by A.M. Best, according to unaffiliated gross written premium in 2014. It is the only reinsurance company from the Middle East to appear on the list.