Qatar Reinsurance Company Limited (Qatar Re), the reinsurance subsidiary of QIC Group, signed a sales purchase agreement to buy Markerstudy’s Gibraltar-based insurance companies, namely Markerstudy Insurance Company Limited, Zenith Insurance PLC, St Julians Insurance Company Limited and Ultimate Insurance Company Limited.
Markerstudy underwrites more than 5 per cent of the UK’s motor insurance market, generating premiums of about 750 million pound.
The QIC Group has an existing substantial relationship with Markerstudy through Qatar Re and QIC Europe Ltd (QEL).
“This deal allows QIC Group to grow its lower volatility business while leveraging our existing success in QEL. It is a natural next step in the strategy we have pursued over recent years in relation to the group international businesses, which diversifies QIC’s overall portfolio,” Khalifa Al Subaey, QIC Group President and CEO told B2B.
“This transaction builds on the strong foundation of our existing relationship. It provides Qatar Re with a greater share of lower volatility business that has performed consistently well for us, balancing our specialty and catastrophe book. In addition, the transaction will enable us to write UK business under any post-Brexit scenario,” added Gunther Saacke, Qatar Re’s CEO.
“Through this acquisition, Qatar Re reaffirms its commitment to supporting innovative entrepreneurship in insurance marketing, distribution and servicing.”
“For a long time we have had a tremendous relationship with Qatar Re. Their proactive approach has assisted our development and this is a natural evolution; to combine our strengths to establish a primary player in the UK insurance sector,” said Kevin Spencer, CEO of Markerstudy Group.
“This strategic alliance has three-fold benefits; it enables us to simplify our product offering and processes for our intermediaries and broker partners; it provides us with “A” rated capital backing, and ensures we maintain the continuity of marketing, distribution, service and support. Ultimately, this arrangement will facilitate our strategy for growth and profitability, positioning us for further success,” noted Spencer.
The transaction is subject to regulatory approvals and is anticipated to complete in the first half of 2018.