Gunther Saacke, CEO of Q-Re, is one of the heavy-hitters of the reinsurance industry. ta’ameen Qatar spoke to the homegrown reinsurer, to understand how it has positioned itself differently to underwrite global complex risks, which are outside the State of Qatar. 

Gunther Saacke, CEO of Q-Re

Q-Re had been a regional reinsurer primarily targeting the Middle East and Africa. Since the beginning of 2013, Q-Re has transformed into a global reinsurer, aspiring to reach the top ten league by 2025. How do you attempt to accomplish this objective? 

We have clearly outlined our strategic approach, which is founded on a distinct positioning of becoming a global multi-line reinsurer with a focus on specialty lines. To put this approach into action, Q-Re has built up a highly experienced management and underwriting team, which pursues an integrated portfolio management approach as a key differentiator. We measure the impact of each risk that is underwritten on the overall portfolio. We focus on specialist lines of business, based on superior underwriting skills, while generating lead quotations based on our proprietary pricing capabilities. Founded in Qatar and drawing on our capital strength therefrom, we offer highly rated security to our clients, which provides an instant diversification to their reinsurance panel and is distinct from traditional sources of reinsurance capacity. Going forward, we want to establish Q-Re in key reinsurance centres, such as London, Zurich and Bermuda to maximise the showing of business. 

Based on your global approach, you would be in direct competition with the established reinsurers, who are based across the globe? In that respect, what sets Q-Re apart? 

Right from the start, Q-Re has positioned itself as a global multi-line reinsurer with a focus on specialist lines, aiming for price leadership. First, our capital base is distinct due to its rooting in the Middle East and thus is not exposed to the same fluctuation as the capital base of the traditional reinsurers. Second, our specialist approach, coupled with our underwriting expertise and in-house pricing capacity puts Q-Re in a position to hand in our quotes and price the business according to our portfolio requirements. Third, we are a nimble, lean organisation, which has been set-up in key reinsurance centres, allowing for client proximity, first hand market expertise and short response times. 

Please tell us about your achievements since the beginning of 2013. 

Over the past eight months, we have put a number of key measures in place. First, we have built up a well-balanced portfolio, which is diversified on a worldwide basis across all lines. Second, we have recruited a team of underwriting professionals with an acknowledged track record in the market. Over the year, we have significantly increased our headcount in Doha, Zurich and London. Third, we have put reliable underwriting and risk management systems in place. All in all, we have outperformed our financial objectives against our business targets for the first half of 2013. 

West Bay, Doha 

Being the CEO of a reputed reinsurer, what are your objectives for the coming year-end renewals? 

Barring a few minor exceptions, Q-Re aims to grow its portfolio across all lines and geographies. In addition, we want to build our recognition for outstanding service, industry-thought leadership and customer focus. Further, we will support our clients with lead capacity based on our technical and product expertise. More specifically, we expect to grow our motor lines, further diversify our agriculture book and significantly extend our foothold in the Marine and Aviation sector. 

We are still seeing good margins in the Credit and Surety lines. Therefore, we are open to further expanding our book in this line of business. For the US Catastrophe business, we foresee significant price erosion when compared to previous year’s level of renewal. However, we are keen to further build and diversify our book in areas where prices are reasonable. 

Going forward, both from an operational standpoint and a market perspective, what role does the MENA region play in your strategy? 

Q-Re’s head office is in Doha. Since the beginning of this year, we have grown our home base by 20 percent and have increased our strength to 35 employees. Also, our Doha office is the liaison to our mother company, Qatar Insurance Company (QIC), which is our underwriting centre for facultative risks in energy and engineering. 

From a market perspective, the MENA region is currently characterised by significant available capacity and fierce price competition. Since Q-Re already maintains a strong foothold in this market, it has been only natural to focus our attention on other geographies in the first eight months of 2013 – also with the intent to quickly diversify our book on a global basis.