Qatar Reinsurance Company Limited to acquire Markerstudy Group Insurance companies subject to regulatory approval
Wednesday 3 January, 2018
Markerstudy has today 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.
About Markerstudy Group
Markerstudy Group of Companies (MSG) is a dynamic privately-owned organisation, headquartered in Bessels Green, near Sevenoaks, employing over 3,000 employees in the UK and Gibraltar. It has been listed in the Best Companies to Work For in the UK at The Sunday Times Best Companies Awards for the past five years in a row and was a Top 5 company in 2017 in the Best Big Companies category.
Established in 2001, its insurance arm includes Gibraltar insurers, Markerstudy Insurance Company Limited, Zenith Insurance Plc and Ultimate Insurance Company Ltd plus UK appointed service providers, Markerstudy Limited and Zenith Insurance Management UK Limited, who provide distribution, claims and administrative support.
In 2015, MSG acquired Zenith Marque (previously branded Chaucer Insurance Services Limited) and consumer-facing company Geoffrey Insurance Services (formerly Chaucer Direct).
The following brands operate within the Markerstudy Retail division: Mobilers, Equesure, Insurance Choice, Distinct Private Clients, Distinct Business Insurance, Policy Shop, Insurance Shop, Lancaster Insurance Services, Sureterm Direct, Masterquote, Aquote, Drivology, Insurance Factory and Supercover Insurance Ltd, offering value and choice to a wide range of customers.
The Affinity Division, Ultimate Insurance Solutions (UIS) includes Ultimate Pet Partners Limited, the UK administrative arm of the business and pet brands Purely Pets, Paws & Claws and BDML Connect Limited, one of the UK’s largest affinity based insurance intermediaries for pet insurance.
The Group also includes Auto Windscreens, VisionTrack and Vision Replacement Solutions Limited.
About Qatar Re
Qatar Re, licensed as a Class 4 Insurer by the Bermuda Monetary Authority, is a global multi-line reinsurer writing all major property, casualty and specialty lines of business. Qatar Re serves its clients through teams of seasoned underwriting and finance professionals combining in-depth technical and business expertise with industry experience across all markets. Through its headquarters in Bermuda, branch offices in Zurich, the Dubai International Financial Centre and Singapore and representative office in London, Qatar Re is close to the world’s major reinsurance markets and the core operations of its clients. Qatar Re is backed by a parental guarantee from Qatar Insurance Company S.A.Q. (QIC) and benefits from QIC’s substantial and growing capital base. Qatar Re is rated “A/Stable” by S&P Global and “A (Excellent)” by A. M. Best.
For further information about Qatar Re, please visit our website at www.qatarreinsurance.com.
About Capsicum Re
Founded by Grahame Chilton and Rupert Swallow in 2013, Capsicum Reinsurance Brokers LLP Group (“Capsicum Re”) is a reinsurance broker working in partnership with Arthur J. Gallagher as its primary treaty reinsurance broking outlet. Based out of offices in London, Bermuda, Rio de Janeiro, Miami and Santiago, Capsicum Re is focused on attracting the best advocates in the market to provide bespoke and specialist reinsurance advice and products; it boasts the foremost broking teams in the specialist areas of the market that it focuses on.
For further information, please visit https://www.capsicumre.com/
Contact at Markerstudy
Head of Group Communications
Contact at Qatar Re
Dr. Kai-Uwe Schanz
D: +41 44 207 85 01
D: +41 44 256 10 81
Contact at Capsicum Re
Rupert Swallow – CEO
+44 (0)207 234 4075
David Haggie/ Chanice Smith
+44 (0)207 562 4444