S&P Global has affirmed Qatar’s Insurance Company’s (QIC) ‘A’ financial strength rating with a stable outlook, stating that it doesn’t expect the current diplomatic situation to have much impact on the firm due to its low levels of exposure with the countries involved.
The rating agency said the firm’s excellent rating is down to its rapid expansion and diversification, strong capital support, and maintenance of pricing discipline in a challenging global market environment.
QIC has expanded rapidly within the UK and global reinsurance markets, and enjoys a favourable risk profile supported by the firm’s diversified and liquid investment portfolio and moderate catastrophe exposure.
S&P added that it expects QIC’s risk based capital to remain “extremely strong due to a rights issue in 2016 and a hybrid issue in 2017.”
Khalifa A Al Subaey, Group President and Chief Executive Officer of QIC Group, said: “We are encouraged by S&P’s affirmation of our strong financial strength rating. The rating agency recognizes the successful establishment of our global QIC footprint and its expected continued positive effect on our financial performance going forward.”
Global diversification has helped QIC to maintain its rating, despite the potential ramifications of the current situation in the country. Qatar Re remains a key component of this, helping the group to acquire premiums from global insurance markets and playing a role in Bermuda as a leading reinsurer.