Performance of the Markerstudy companies bought by Qatar Re last year also revealed in QIC results
The price paid by Qatar Re for Markerstudy’s Gibraltar-based underwriting businesses last year was around £104m.
However, on completing the acquisition, the firm picked up around £68m in cash balances owned by the companies, making it a net spend of around £36m.
The acquisition details were revealed in the annual 2018 results submitted by Qatar Re owner Qatar Insurance Company (QIC).
Qatar Re announced a deal had been agreed to acquire Markerstudy Insurance Co, Zenith Insurance, St Julians Insurance Co, and Ultimate Insurance Co in January 2018.
Since completion of the acquisition, revealed to be in July 2018, the Markerstudy companies have written £116m in premium and generated £9.3m of profit for Qatar Re.
At the time the deal was announced in January 2018, the companies underwrote 5% of the UK motor market, generating about £750m GWP per year.
For QIC as a group, the company reported gross premiums of £2.68bn, up 8.12% on 2017 figures.
Profit for the year was £141m, up 56.8% on last year.
This was largely helped by a net underwriting result of £122m, up 401% on 2017.
Khalifa Abdulla Turki Al Subaey, group president and chief executive of QIC Group said the strong 2018 performance proved the group’s “strategic decision, taken more than a year ago, to shift the underwriting focus to a lower volatility segment” had been proven right.
He added: “This comprehensive de-risking was successfully completed towards the end of 2018 and we should be able to reap the fruit of this effort in 2019 and beyond.”
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