A.M. Best Upgrades Ratings of Qatar General Insurance and Reinsurance Company S.A.Q.

A.M. Best Europe - Rating Services Limited has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to "a-" from "bbb+" of Qatar General Insurance and Reinsurance Company S.A.Q. (QGIR) (Qatar). The outlook for both ratings has been revised to stable from positive.

The rating upgrades reflect QGIR's strong risk-adjusted capitalisation, sound track record of operating performance and enhanced risk management capabilities. An offsetting rating factor is the company's high concentration in Qatari real estate and equity assets.

QGIR's prospective risk-adjusted capitalisation is expected to remain strong and supportive of the company's projected growth over the medium term. Capital requirements are driven by QGIR's investment risk, with over 80% of its portfolio held in real estate and quoted equities at year-end 2013. However, QGIR has sufficient shareholders' equity to absorb this concentrated investment profile and has proven its ability to prudently manage its exposures. QGIR's investment profile may be a source of future volatility to both its capital position and its operating results. Furthermore, the company has sound technical performance with its combined ratio expected to be maintained at approximately 95% for 2013.

QGIR is the second-largest insurer within the Qatari market with a 23% market share. Furthermore, its profile is enhanced by its Shari'a compliant subsidiary, General Takaful Company S.P.C., which is expected to generate gross contributions in excess of QAR 200 million in 2013.

Upward rating movement is unlikely in the medium term.

Downward rating pressure could result from material reduction in risk-adjusted capitalisation or a deterioration in operating performance.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

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A.M. Best Company
Michael Dunckley, +(44) 20 7397 0321
Associate Financial Analyst
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Mahesh Mistry, +(44) 20 7397 0325
Director, Analytics
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Rachelle Morrow, +(1) 908 439 2200, ext. 5378
Senior Manager, Public Relations
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Jim Peavy, +(1) 908 439 2200, ext. 5644
Vice President, Public Relations
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