Qatar Insurance Services said it has acquired Reinsurance and Insurance for the 3rd Millennium (R13K), a London based privately held web-based insurance and reinsurance trading platform. Qatar Insurance Services is a Qatar Financial Centre (QFC) based owner of Qatarlyst, and expects the investment to accelerate the development of the QFC as one of the foremost hubs for reinsurance in the GCC region.
Other than that, the Qatar firm expects the investment to as well enable it expand Qatarlyst’s international reach to London and beyond, in addition to enabling it foray into other regional markets such as South East Asia. Qatarlyst chief executive officer James Sutherland said the acquisition is a good strategic fit both technologically and geographically for Qatarlyst (a technology-enabled insurance and reinsurance trade facilitation interface), as it gives the firm access to the key London and international markets.
Qatar Insurance Services’ ambition is to become the single e-platform that supports existing distribution channels and markets with the next generation support tool for placement, claims and accounting workflows between counterparties, said Sutherland. Sutherland reiterated that the two businesses are expected to be fully integrated over time to create a single platform with enhanced functionality and accessibility. He however also noted that the investment robustly enhances the scale and scope of the existing Qatarlyst business.
But regardless, Sutherland declined to divulge details regarding the value of the deal but said the funding for the acquisition would be met internally. The head office of the combined business will be in Qatar. He however further noted London’s significance as the world’s oldest insurance market, saying that it is important that the firm secures and maintains strong links with it and other global markets.
Qatarlyst deputy Chief Executive Officer Khalid al-Mughesib said the future success of the firm’s business is dependent on its ability to offer far into the future a financially and technically secure e-platform solution on which its clients can transact quickly and efficiently.
RI3K provides a global ‘Platform as a Service’ that replaces the paper-based processes that support the transactions of all types and classes of large commercial insurance and facultative and treaty reinsurance.
The London firm has an estimated $8bn-plus premium traded since the beginning of trading. With the acquisition of RI3K, Qatarlyst will have access to more than 290 new insurers, re-insurers and broker members and connections to other global markets such as Zurich and Bermuda as well as connections to the new London Market Exchange.