Sky News has reported that Bermuda domiciled reinsurer Qatar Re, part of the Qatar Insurance Company (QIC), has joined forces with another investor to make a £500 million bid for a UK motor insurance group.
Qatar Re is reported to have aligned itself with U.S. based private equity investment group Centerbridge Partners L.P. to table a bid for UK motor insurance group Sabre, which owns brands such as Insure2Drive, the telematics insurer DriveSmart and Go Girl.
Qatar Re and Centerbridge are reportedly up against buyout specialist Warburg Pincus to acquire Sabre. While Sabre’s current owners, equity investors BC Partners, are said to be exploring a stock exchange listing that could scupper any attempt to buy the motor insurer privately.
It’s reported that if an initial public offering (IPO) is pursued it could raise as much as a £600 million valuation for Sabre. But a quick, private sale to the reinsurer and investors could also prove attractive.
For Qatar Re and parent QIC the Sabre group of motor insurance companies could be an attractive investment, not just for the fast-growth the insurer has achieved in recent years, its range of targeted motor brands, and its technology led approach, but also for the opportunity to make a more efficient use of reinsurance capital to support the motor insurer, while helping it to expand into other regions, perhaps including the Gulf.