AM Best downgrades Qatar/Antares on volatility concerns

AM Best has downgraded the Financial Strength Rating of Qatar Insurance Company and its Bermuda subsidiary Antares Reinsurance Company to A- from A. The outlook of the ratings has been revised to stable from negative.

The rating agency said the downgrades reflect a revision in AM Best’s assessment of QIC’s operating performance to adequate from strong. Underwriting results have been unprofitable and volatile in recent years, evidenced by a five-year (2017-2021) weighted average combined ratio of 105% with a standard deviation of 5%.

While QIC has generally been profitable over the period, AM Best said it considers that the group’s overall results are no longer supportive of a strong operating performance assessment.

It also said the ratings reflect QIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).