Qatar Re cuts marine treaty business

Bermuda-headquartered Qatar Re, a global multi-line reinsurer backed by Qatar Insurance Co, has reduced its marine treaty participations at the January 2017 renewals. It said that “mindful of the continued challenging market conditions, the Company has reduced its participation in several lines of treaty business, including Marine and Energy, Non-US Property Catastrophe, and Middle East Property and Casualty. In contrast, Qatar Re increased its participation in UK Motor structured deals, International Property Facultative, and US Property Per Risk.”

Qatar Re CEO Gunther Saacke said that “in 2016, our focus was on consolidating Qatar Re’s book of business in what has been a continuously degrading market environment. In line with our expectations, the pace of our premium growth has slowed as we focus on maintaining price adequacy. Whilst it has been necessary to withdraw from certain underpriced business, we were successful in replacing it with more attractive risks, primarily emanating from highly specialist reinsurance transactions and bespoke support of insurance entrepreneurs.”

For 2016 Qatar Re posted GWP of $94.7m in marine and aviation (NWP $22.2m) out of total GWP of $1.25bn (NWP $363m). The vast majority of Qatar Re’s business is in Property & Casualty. The net underwriting result in marine & aviation was plus $2.38m. This compares with GWP of $39.97m in 2015 (NWP $11.57m) and a net underwriting result of plus $1.14m.