Markerstudy has exchanged contracts to sell its Gibraltar-based insurance companies, namely Markerstudy Insurance Company Limited, Zenith Insurance PLC, St Julians Insurance Company Limited and Ultimate Insurance Company Limited to Qatar Reinsurance Company Limited (Qatar Re).
Markerstudy underwrites more than 5% of the UK motor market, and this deal will secure long term capacity, creating one of the largest retail insurance MGAs and underwriting its position in the UK market, whilst adding more than £750m to Qatar Re.
Kevin Spencer, CEO of Markerstudy Group commented: “For a long time we have had a tremendous relationship with Qatar Re. Their proactive approach has assisted our development and this is a natural evolution; to combine our strengths to establish a primary player in the UK insurance sector. I would also like to thank the team at Capsicum Re who have played a pivotal role in the transaction.
“This strategic alliance has three-fold benefits; it enables us to simplify our product offering and processes for our intermediaries and broker partners; it provides us with A rated capital backing, and ensures we maintain the continuity of marketing, distribution, service and support. Ultimately, this arrangement will facilitate our strategy for growth and profitability, positioning us for further success.”
Gunther Saacke, Qatar Re’s CEO, commented: “This transaction builds on the strong foundation of our existing relationship. It provides Qatar Re with a greater share of lower volatility business that has performed consistently well for us, balancing our specialty and catastrophe book. In addition, the transaction will enable us to write UK business under any post-Brexit scenario.”
Gunther Saacke continued: “Through this acquisition, Qatar Re reaffirms its commitment to supporting innovative entrepreneurship in insurance marketing, distribution and servicing.”
Raja Balasuriya, Partner at Capsicum Re, said: "We have enjoyed a strong relationship with Markerstudy for many years, having arranged the original quota share and co-insurance following their acquisition of Chaucer’s UK motor business in 2015. The burgeoning partnership between Qatar Re and Markerstudy Group will create a formidable force in UK personal lines, and we are delighted with the part we have played and look forward to continuing to work with both companies.”
The transaction is subject to regulatory approvals and is anticipated to complete in the first half of 2018.