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AM Best Downgrades Credit Ratings of Qatar Insurance Company Q.S.P.C. and Its Subsidiary

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Press release content from Business Wire. The AP news staff was not involved in its creation.
December 15, 2022 GMT

LONDON--(BUSINESS WIRE)--Dec 15, 2022--

AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a-” (Excellent) from “a” (Excellent) of Qatar Insurance Company Q.S.P.C. (QIC) (Qatar), and its subsidiary Antares Reinsurance Company Limited (Antares Re) (Bermuda). The outlook of these Credit Ratings (ratings) has been revised to stable from negative.

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).

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 considers that the group’s overall results are no longer supportive of a strong operating performance assessment.


The group’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and is supported by good financial flexibility, a conservative investment portfolio by asset class and low reinsurance dependence. An offsetting factor is the concentration of QIC’s assets towards Qatar and Gulf Cooperation Council countries, despite the vast majority of the group’s business being sourced from the United Kingdom, Europe and Bermuda. Furthermore, QIC is developing, but currently lacks, a consistent group-wide approach to reserving. Reserves are held at the best estimate, with limited buffers to absorb volatility.

In 2021, QIC reported gross written premium (GWP) of QAR 12.6 billion (USD 3.5 billion), an increase of 4% over 2020. Approximately 80% of GWP is derived from Antares Global (previously Qatar Global, rebranded in early 2022), QIC’s international division, which benefits from a geographically diversified multi-platform approach, including a Lloyd’s platform, a Bermuda reinsurer and carriers in Europe. QIC has a leading position in Qatar and a robust foothold in the United Arab Emirates market, though these markets comprise a relatively small proportion of overall group revenue.


QIC’s business mix has been volatile in recent years, with a growing focus on motor insurance which exceeded 50% of consolidated GWP in 2021. However, the group’s recent announcement stating its intention to divest from its Gibraltar-based carriers - which largely underwrite U.K. motor business - will likely halt this trend and result in a decline of motor premium over the medium-to-long term.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.


AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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PUB: 12/15/2022 10:05 AM/DISC: 12/15/2022 10:05 AM