Bermuda reinsurer Qatar Re’s financial strength rating has been affirmed at A by AM Best, with a stable outlook.

The rapidly expanding company has been a primary growth driver for its owner, Qatar Insurance Company, also rated A by Best.

However, in its ratings commentary Best noted the risks associated with the reinsurance arm’s expansion.

“The ratings of QIC reflect its very strong risk-adjusted capitalisation, robust underwriting performance and global business diversification,” AM Best stated. “Offsetting rating factors are QIC’s investment concentration in Qatar and the execution risk associated with rapid growth of the group, particularly within its reinsurance arm.”

QIC has had a reinsurance operation in Bermuda since 2013 and Qatar Re completed the move of its corporate domicile from Doha to the island in 2015.

During the first six months of 2016 it achieved improved results, including a 79 per cent jump in half-year profit to $23.9 million. Gross written premiums soared 41 per cent, year over year, to $654 million during the half-year period.

The company’s offices are on Pitts Bay Road.

QIC has a five-year weighted average return on equity of 16.7 per cent, according to Best.

“Underwriting performance strengthened in 2015, with a combined ratio of 91.1 per cent, which reflected strong improvements in Qatar Re’s technical profitability combined with continued earnings stability from QIC’s domestic insurance operations,” Best stated.

“QIC’s profit for the year was QAR 1.1 billion ($292.5 million), although profitability remains heavily weighted towards investment income. In the first three quarters of 2016, QIC generated an operating profit of QAR 726.1 million ($199.5 million), broadly in line with the same period in 2015, with a combined ratio of 95 per cent.”

Best said Qatar Re “is a global top 50 reinsurer writing an internationally diversified portfolio”.

QIC also owns Antares, a Lloyd’s of London operation that writes a portfolio of marine, casualty and aviation business.