LONDON--(BUSINESS WIRE)--A.M. Best has commented that the financial strength rating of A (Excellent) and the issuer credit ratings of “a” of Qatar Insurance Company S.A.Q. (QIC) (Qatar) and its main subsidiaries remain unchanged following QIC’s acquisition of Antares Holdings Limited (Antares). A.M. Best will closely monitor QIC’s capital position and operating performance following this strategic transaction and the high level of growth anticipated within its reinsurance subsidiary.
The acquisition of Antares is in line with QIC’s strategy to build an international, diversified insurance group. The acquisition provides QIC with greater diversification geographically and by line of business. Antares is a specialist insurance and reinsurance group operating in the Lloyd’s market, writing GBP 224 million (USD 384 million) of premium revenue, translating into approximately 40% of QIC’s profile at year-end 2013. Antares underwrites business through Lloyd’s Syndicate 1274, using its integrated managing agency, and it has a Bermudian platform with a Class 3 reinsurance license. QIC is expected to achieve year-on-year gross premium growth of 64% in 2014 due to the acquisition of Antares and with the expansion of its existing reinsurance subsidiary, Qatar Reinsurance Company LLC.
QIC’s strong risk-adjusted capitalisation has enabled it to fund the acquisition internally, while maintaining sufficient capital adequacy for the current rating level. Given the robust profitability of Antares’ and QIC’s direct domestic and international operations, QIC is expected to be able to grow its capital organically to support prospective growth.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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