The AM Best insurance rating agency has assigned a financial strength rating of B++ to Qatar General Insurance and Reinsurance Company (QGIR), a Qatar-based direct insurer. The rating outlook for the firm is stable.
The rating reflects the company's superior risk-adjusted capitalization, excellent financial performance and very good business position, said the agency. Offsetting factors include business and investment concentration and high reliance on reinsurance cover.
AM Best expects QGIR to maintain superior risk-adjusted capital at year-end 2003 and 2004, supported by substantial retained earnings. Nevertheless, QGIR cedes between 65 to 75 percent of gross premium income, leaving it highly dependent upon the pricing and availability of reinsurance cover.
QGIR's current and prospective operating performance is regarded as excellent by AM Best. The company’s track record is reflected in reported operating profits in each of the last 10 years. Assuming normal loss experience, AM Best expects the company's combined ratio to be between 87 to 95 percent at year-end 2003 and 2004 as the company cuts back on its loss making business, a motor fleet account historically written in the Dubai office.
QGIR is expected to maintain its very good business position within the markets in which it operates, writing an account that largely consists of direct energy, motor and fire business. The Qatari market is served by a limited number of insurers with no foreign competition. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
