Qatar Insurance Company’s re-insurance subsidiary Q-Re will soon establish operations in Zurich and Bermuda as part of a “significant” step onto the global insurance business.
QIC, which is the dominant player in the domestic market, is also establishing specialist investment vehicles through its Qatar Financial Centre-based QIC Capital.
These, which come under its five-year strategic plan, were highlighted yesterday by Sheikh Khalid bin Mohamed bin Ali al-Thani to shareholders, who approved the 45% dividend (25% cash bonus and 20% stock dividend) at the annual general assembly meeting.
Highlighting that it intends to raise Qatar as an insurance and re-insurance business hub in the Middle East, the company said it plans to position its re-insurance arm Q-Re as a leading global company out of Qatar that will provide much-needed capital, capacity and risk management capabilities to insurers internationally.
“We have embarked upon an extensive programme to enhance our global reach through Q-Re, which is expected to double the company’s size,” Sheikh Khalid said in the board of directors’ report.
Bullish on the growth prospects from reinsurance business, he said the re-insurance arm is reaching out to establish operations in Zurich and Bermuda.
“We have invested in creating effective systems and processes and acquiring a new custom IT platform specifically designed to support Q-Re and its expanded international underwriting and risk management,” QIC Group president and CEO Khalifa Abdulla Turki al-Subaey said.
The new team would be in place by the end of first quarter of 2013 with all systems and procedures fully operational by mid-year and ready for a re-launch towards the end of the year.
Q-Re, which posted a profit of QR12.04mn from a gross written income of QR375mn in 2012, already has a representative office in London. It seeks to underwrite a more diversified portfolio of risks which include credit and surety, agriculture, engineering and aviation.
These new lines augment and diversify the existing portfolio of treaty, energy and non-energy facultative risks currently written from the Q-Re head office in Doha, the report said.
Regarding strengthening its asset management side, QIC said “in 2013, various investment specific verticals will be incorporated under QIC Capital (a QFC-based holding company) to take forward a variety of investment initiatives.”
QIC group provides specialist investment advice to more than $2.2bn of funds apart from managing its own investment assets. “The investment operations in Qatar, Dubai and the Isle of Man are growing as planned,” the board said.
“QIC is establishing a specialist asset management platform through the QFC. This process is expected to be completed within this year,” it said.
Oliver and Wyman, a reputed global consultant, had been contracted by QIC to study and revamp its existing systems, processes, procedures and structure the company to align for future growth.