Qatar Insurance Company awarded with an ‘A-‘/stable rating from S&P

The financial strength of an insurer is often the most important part of the decision to buy the right insurance product. That’s why it’s vital to check the insurer’s Standard & Poor’s financial strength rating. Naturally, you also should consider the scope and terms of coverage, the quality of customer service and of course, the price and benefits of the policy.



Standard & Poor’s insurance analysts have had many years of training and experience, analyzing global insurance companies, large and small, in many different lines of business. After such analysis carried out by Standard & Poor’s team of specialists, here is what they had to say about us;

The ratings on Qatar-domiciled underwriter Qatar Insurance Co. S.A.Q. (QIC) reflect the company’s strong and established competitive position, very strong capitalization, very strong operating performance, and proven management team and control structure. These factors are partially offset by the potential for adverse operational volatility and lack of geographical diversity
in the classes of business upon which QIC focuses, its very high reliance on reinsurance protection, and the heavy local concentration of its investment portfolio..

 

QIC is a quoted company on the Doha Securities Market (DSM), and the Qatari government
has retained a 12% stake in the company since its establishment in 1964.

QIC has a strong competitive position in the State of Qatar (A+/Positive/A-1), where it is the
leading “national” insurance company, a status that gives it the right to quote to lead underwrite for all government-sponsored project risks. The Qatari economy is expanding significantly as the government develops liquid natural gas resources and invests in the supporting infrastructure— developments that will require substantial insurance protection. It is expected that QIC’s “national” insurer status will be maintained for the foreseeable future.

QIC’s capitalization, quality of capital, and capital adequacy are very strong, and therefore a rating strength. QIC’s capital adequacy is expected to remain very strong, being supported in 2005 by a rights issue, the proceeds of which will be in part used to finance its operations across the Gulf Cooperation Council (GCC) region. Key risks to capital arise through the very locally focused investment portfolio and QIC’s very high dependence upon reinsurance. Nevertheless, capital adequacy is considered able to absorb the potential economic investment risk. The strength of the reinsurance relationships and security of the leading reinsurers used by QIC alleviate this risk. Financial flexibility is considered strong, as demonstrated by the rights issue in the first quarter of 2005. Capital growth from the establishment of the company in 1964 has been solely internally financed through profit retention.

QIC’s management is a positive factor for the ratings, having been with the company since the early 1990s and proven itself through its track record of sound earnings and capital growth.

In view of the track record of the risk portfolio and the strengths of management, Standard & Poor’s Ratings Services expects QIC to continue to post strong results. Nevertheless, the energy/petrochemical focus of the risk book may lead to increased volatility in operating performance.