Qatar-based Seib Insurance and Reinsurance Co (Seib) has been gradually increasing its net shareholders' equity over the past few years, notes S&P Global Ratings (S&P) as it revises the outlook on the company to 'Positive' from 'Stable'.
The positive outlook reflects this track record that has led the total adjusted capital, as per S&P models, to exceed $25m.
The company has also maintained a significant capital buffer above the 99.99% benchmark, as per S&P’s risk-based capital model, over the past few years. The international credit rating agency expects the absolute size of Seib’s capital and capital adequacy buffers to gradually improve from the current levels over the next two years, supported by positive net income projections, of which a portion is expected to be retained.
At the same time, S&P affirms Seib’s 'BBB' long-term issuer credit and insurer financial strength ratings and 'gcAA' Gulf Cooperation Council regional scale rating.
Seib is a privately held Qatari company established in 2010 and licensed by the Qatar Financial Centre Regulatory Authority (QFCRA).
Revenue
S&P projects Seib's insurance revenue to increase by about 12% in 2025 and that this growth trend will continue over the forecast horizon, remaining within 10%-12%. This growth will be driven by organic growth in its business lines such as medical, motor, general accident, and property.
Seib also maintains a track record of stable net combined ratio with a three-year average net combined ratio (under International Financial Reporting Standard 17) of about 95%. While this demonstrates profitable underwriting results, the ratio is higher than the market average (around 90%), primarily due to its relatively small size. S&P expects Seib's net combined ratio to remain within 95%-98% over the next two years.
Seib maintains a highly liquid and conservative investment portfolio, with limited exposure to high-risk assets, notes S&P. The portfolio is primarily in Qatari riyals or US dollars, which reduces foreign exchange risk, as the Qatari riyal is pegged to the US dollar. Bank deposits and fixed-income securities form a significant concentration of Seib’s investment portfolio, which also support the company’s high liquidity.