Qatar Re’s profits rose and gross written premiums increased in the first half of 2016, driven by client and broker relationship as well as its status as a re/insurer within Bermuda, despite experiencing what it called “unabated headwinds”.
Qatar Re reported gross written premiums of $654 million for the first half of 2016, an increase of 41 percent from $464 million for the same period in 2015.
Qatar Re attributed this growth to its long-term client and broker relationships, its enhanced recognition as a Bermuda Class 4 re/insurer, and the provision of capital and a parental guarantee from QIC.
In the European Union, it benefited from specific project-based opportunities with clients seeking capital relief in order to comply with Solvency II requirements, with certain transactions boosting its underwriting and modelling capability, it said.
Qatar Re's net profit increased 79 percent to $23.9 million in the first half of 2016, up from $13.4 million for the same period in 2015.
The company's combined ratio for the first half of 2016 improved to 95.8 percent from 97.7 in the first half of 2015.
Gunther Saacke, Qatar Re’s chief executive, said: “Our 2016 half-year financial results testify to Qatar Re’s robust positioning in an environment of continued economic volatility and reinsurance market softness, exacerbated by above-average global catastrophe losses in the second quarter.
“Qatar Re’s relative resilience reflects the increasing depth and diversification of our portfolio, with earnings from past years now coming through. Our franchise continues to grow on the back of our status as a Bermuda Class 4 (re)insurer and distinct strengths such as a class intimacy, proximity to our business partners and risk management excellence.
“These capabilities enable us to expand our book of business without tracking the market. In addition, we have benefited from economies of scale, yielding a significant reduction of our administrative expense ratio.”
Qatar Re, Insurance, Reinsurance, Results, Bermuda, Solvency II