Qatar – Probable mergers between insurers
Tuesday, 04 12 2016, Category: Insurance and Reinsurance, Country: Qatar
Observers expect mergers between insurance companies that have low capitals because of the increase in the minimum regulatory capital. This move will strengthen the financial solvency in line with regulations adopted by the Qatar Central Bank by the end of the last month of March in order organize the insurance sector. The regulations stipulate that the minimum capital is QR 100 million for listed companies. However, non-listed companies should have a minimum capital set by the Central Bank or the risk-based capital. The law also says that the branches of insurance companies should have a deposit of QR 35 million.
Observers said that these regulations strengthen the solvency of companies, their competitive positions and that the capital increases will improve capitalization.
Source: Newspaper Al Watan