New kid on the block no more

Redomiciling to Bermuda as a Class 4 licensed reinsurer was an important step for Qatar Re. Four years into its global expansion plans, the company is now an established player, says Luke Roden, head of ceded re & global head of catastrophe.

As the head of ceded re & global head of catastrophe, what is the company’s strategy for North America?

We have grown to become a global, multiline, composite reinsurer which operates with flat hierarchies, empowered decision-making authority and the flexibility to serve our clients in the best possible way. The combination of expertise, professionalism and experience is one of our core strengths. Qatar Re has a clear strategy when it comes to doing business in North America, as we are in the market for the long run.

Currently, our North American book of business is roughly 10 percent of Qatar Re’s overall portfolio with some bias on mutual insurers which we support with our strong capacity due to their limited access to capital markets, as compared to stock listed companies.

Since September 2015, Qatar Re is licensed as a class 4 reinsurer in Bermuda. This has further enhanced Qatar Re’s position in the North American market, given the strong recognition of the Bermuda Monetary Authority (BMA). Thanks to our relocation to Bermuda, we have now moved even closer to our clients in the Americas, their markets and lines of business. We provide our cedants with the best possible support, a dedicated value proposition and a highly experienced team.

What has been the impact of Qatar Re’s licensing as a class 4 reinsurer?

One cannot overestimate the impact of the transfer of our licence to Bermuda. The regulatory framework and requirements of the BMA, its quality standards and reputation, have clearly proved to be a beneficial factor for our business dealings in North America as it gives additional comfort and a feeling of enhanced security and stability to our clients when doing business with us—not just in this part of the world, but globally.

Qatar Re is no longer the new kid on the block. Within just four years we have advanced to become a global reinsurer among the top 35 in the industry. Also, we are ‘A’-rated by AM Best and S&P and have built a track record over time. We have been writing property, per risk, pro rata, property facultative, and property cat, both for proportional and non-proportional treaty reinsurance, for a couple of years now.

It is our fifth renewal season here in Bermuda—we will further diversify our portfolio and expand our offering into general casualty lines. In addition, we offer specialty lines such as agriculture, aviation, energy (on and offshore), engineering and marine with the support from our experts in Zurich.

We understand the challenges of our clients and are very familiar with the risks they face. Therefore, coupled with our longstanding experience as underwriters and the North American marketplace and the wealth of expertise in this market, we provide tailored and suitable solutions that match and cater to our cedants’ needs. Our underwriters built their experience with large companies, so we are used to taking complex underwriting decisions.

Qatar Re has given us the opportunity to bring our experience to bear, but in return has stripped us of the cumbersome internal politics and hurdles that characterise many of the larger reinsurers. As a result, our key to success rests on well-established client relationships which we nourish with clear decision-making authority, professional expertise and innovative solutions.

What challenges do you see ahead?

We will continue to broaden our portfolio and expand our client base. We are not keen on providing capacity for capacity’s sake, nor are we eager to grow premiums just for premiums’ sake.

We don’t expect the market to move much until interest rates turn upwards. Direct access to decision-makers like us is highly appreciated by our clients who want to avoid the bureaucratic hurdles they may experience elsewhere. We are here to talk to the customers directly, and we strive to make decisions quickly and succinctly.

We still see pressure on rates, but more important is the quality of capacity for the long term and that accounts are managed properly. It’s about the service that counts on both sides. We are not afraid of regulation, as high standards and being held accountable count just as much. While the market remains competitive, we keep our focus on the right terms and conditions, as it is significantly more important to get the wording right, rather than simply to achieve higher premiums and then get stuck with higher losses in the end.

The continued soft market cycle remains a challenge for all industry players, but we are committed to working alongside our clients and business partners.

Luke Roden is head of ceded re & global head of catastrophe at Qatar Re. He can be contacted at: lroden@qregroup.com