Opportunities for profitable growth remain

In yesterday’s newsletter we published the results of a survey of PCI delegates conducted ahead of the conference. Luke Roden, head of ceded re & global head of catastrophe at Qatar Re, now answers those same questions in more detail.

Why do you attend the PCI conference?

The annual PCI conference is an important date in our calendar to meet our existing and potential clients face to face and to hear about what is happening in the market. It allows us to build on existing relationships and establish new ones, while deepening and broadening these in order to also explore new business opportunities.

We see the mutual benefit in developing long-term partnerships with our brokers and clients. We are a committed broker market and like to support established players who are not just seeking long-term capacity but are looking for an experienced partner they can talk to directly and who understands their issues and often complex and challenging needs.

Since November 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 will be the main talking points at this year’s PCI?

In light of the soft market reinsurance conditions, reinsurers and insurers alike will continue to debate rate erosions, and loosening terms and conditions. However, at Qatar Re we have grown in this market. As a company—not as individuals—we have only known these conditions, and we have not let them distract us.

We are well prepared for the upcoming renewals in North America. Despite the soft market and challenging business environment, we see opportunities for profitable growth. As a result, we will continue to broaden our portfolio and expand our client base.

As we have already been writing property, per risk, pro rata, property facultative, property cat, both for proportional and non-proportional treaty reinsurance, for a couple of years now—actually it’s 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 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.

What is your biggest challenge/concern at the moment?

We still see pressure on reinsurance rates, but 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 correct, rather than simply to achieve higher premiums and then get stuck with higher losses.

The current position within the market cycle remains a challenge for all industry players, but we are committed to ride out the cycle while embracing competition and working alongside our clients and business partners.

We understand the challenges of our clients and are very familiar with the risks they face. Therefore, coupled with our decades of experience and wealth of expertise in the market, we can provide tailored and suitable solutions that match and cater to their needs. As a result, our key to success is built on longstanding client relationships which we nourish with clear decision-making authority, professional expertise and innovative solutions.

Which lines of business do you see the fastest growth in?

As a company we have plenty of headroom in all lines of business. We are cautiously entering the general casualty market place and expanding upon our existing short tail relationships. Our growing, unique capital base will allow us to expand into entirely new client relationships as well.

As a marketplace, cyber risk is clearly a topic that requires attention. This is potentially an area of great growth, but it is also one that requires a very specialist education and expertise.

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