Bermudian-based Qatar Re has struck a deal to buy Markerstudy’s Gibraltar-based insurance companies.

Markerstudy underwrites more than 5 per cent of the UK motor insurance market, generating premiums of £750 million ($1.01 billion).

Under the sales purchase agreement, Qatar Re will buy Markerstudy Insurance Company Ltd, Zenith Insurance plc, St Julians Insurance Company Ltd and Ultimate Insurance Company Ltd.

The Qatar Insurance Company Group has an existing substantial relationship with Markerstudy through Qatar Re and QIC Europe Ltd (QEL).

Gunther Saacke, Qatar Re’s CEO, said: “This transaction builds on the strong foundation of our existing relationship. It provides Qatar Re with a greater share of lower volatility business that has performed consistently well for us, balancing our specialty and catastrophe book.

“In addition, the transaction will enable us to write UK business under any post-Brexit scenario.”

Kevin Spencer, CEO of Markerstudy Group, said: “This strategic alliance has threefold benefits; it enables us to simplify our product offering and processes for our intermediaries and broker partners; it provides us with A-rated capital backing, and ensures we maintain the continuity of marketing, distribution, service and support.

“Ultimately, this arrangement will facilitate our strategy for growth and profitability, positioning us for further success.”

The transaction is subject to regulatory approvals and is anticipated to complete in the first half of 2018.