Qatarlyst takes strategic step forward with acquisition of RI3K
Transformational transaction increases Qatarlyst membership by over 600%
Qatar Insurance Services LLC, owner of Qatarlyst S.P.C., the technology-based insurance and reinsurance trade fulfilment system based in Doha, is pleased to announce that it has acquired RI3K, the London based pioneer and innovator of technology that supports paperless transactions for the commercial insurance and reinsurance industry.
This is a transformational deal for Qatarlyst, expanding its international reach and enhancing its service offering to London and beyond, creating additional opportunities for growth and providing a quantum leap in the number of members served to over 330, whilst more than doubling its headcount to over 45.
RI3K provides a global ‘Platform as a Service’ (PaaS) 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 service has been developed to support the way that buyers, brokers and carriers around the world conduct business. It allows them to collaborate, create contracts, distribute risk and transact in a way that is faster, more accurate, more efficient and cheaper than the paper and email based processes that currently support commercial insurance negotiations.
RI3K facilitates transactions for over 4,200 individual users drawn from over 290 of the world’s largest and most successful blue chip insurance companies and intermediaries such as Aon, Swiss Re, and Zurich operating in the London and other global insurance markets.
The strategic rationale
The acquisition significantly increases the scale and scope of the existing Qatarlyst business. The two
businesses are expected to be fully integrated over time to create a single platform with enhanced functionality and accessibility.
The Qatarlyst System is provided by Qatarlyst S.P.C. (“Qatarlyst”), a Single Shareholder Company incorporated in the State of Qatar and Licensed by the Qatar Ministry of Business & Trade. Qatarlyst is 100% owned by Qatar Insurance Services LLC (“QIS”) which is incorporated in the QFC and Licensed by the QFC Authority to conduct Professional Services (Consulting). QIS is a wholly owned subsidiary of the Qatar Financial Centre Authority (QFC Authority).
Qatarlyst provides a web based solution for regional brokers and insurance firms to negotiate, place and accept large commercial insurance risks electronically, is expected to benefit from RI3K’s interface with London and the international markets. In turn, existing RI3K customers will benefit from long term financial security and Qatarlyst’s superior functionality in areas such as Retakaful, Claims and Accounting.
The combination of Qatarlyst and RI3K will help to accelerate the development of the Qatar Financial Centre in its declared ambition to become a leading hub for reinsurance in the GCC region and beyond. This acquisition also gives Qatar the opportunity to help to meet London’s insurance market needs for enhanced paperless trading.
Headquartered in Qatar with a significant presence and investment in London, the enlarged business will connect global, regional and local markets, enabling brokers, insurers and reinsurers to drive down their transactional unit cost, save valuable time and will provide increased data accuracy, management information and control.
Abdulrahman Al Shaibi, Chairman of Qatarlyst and Managing Director of the QFC Authority, commented:
“The acquisition of RI3K is a clear sign of our long term commitment to develop the Qatarlyst offering. We firmly believe that the future success of our business is dependent on our ability to offer far into the future a financially and technically secure e-platform solution on which our clients can transact quickly and efficiently.
“In addition, our continual investment in and development of our platform supports the wider strategy of the QFC Authority to develop a regional hub for reinsurance and captive insurance and one that is efficiently connected to other key global centres. London is the world’s oldest insurance market and it is important that we secure and maintain strong links with it and other global markets.”
Robin Merttens, Chief Operating Officer of RI3K and who will become Marketplace Director heading up the London office of the enlarged group, commented:
“The long-term nature of Qatar's commitment to the building of an industry utility should provide all the comfort and reassurance our customers and prospects require. Going forward, the strategy for the enlarged Qatarlyst service is consistent with the change programme in London and will contribute significantly to it.”
James Sutherland, CEO of Qatarlyst commented:
“This acquisition is a good strategic fit both technologically and geographically for Qatarlyst giving us access to the key London and international markets. Our 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. We support the London Market Reform agenda and our aim is to win over all the major brokers and risk assumers in the London Market to using the single Qatarlyst platform to facilitate their business.”
Marlin & Associates acted as exclusive strategic and financial advisor to Qatar Insurance Services, trading as Qatarlyst.
About QIS and Qatarlyst
The Qatarlyst System is provided by Qatarlyst S.P.C. (“Qatarlyst”), a Single Shareholder Company incorporated in the State of Qatar and Licensed by the Qatar Ministry of Business & Trade. Qatarlyst is 100% owned by Qatar Insurance Services LLC (“QIS”) which is incorporated in the QFC and Licensed by the QFC Authority to conduct Professional Services (Consulting). QIS is a wholly owned subsidiary of the Qatar Financial Centre Authority (QFC Authority). Located in Doha, Qatar Qatarlyst has been established in order to play its part in achieving Qatar’s stated desire to become the region’s leading insurance and reinsurance centre. Launched in 2009, over 40 insurance firms in the UAE, Bahrain, Qatar, Kuwait, Lebanon and Jordan have been approved to use the Qatarlyst service. These include Oman Insurance, Doha Insurance and Nasco Insurance Brokers.
QIS has a distinguished board of non-executive directors drawn from business and the insurance and technology sectors:
Abdulrahman Al Shaibi, Chairman (FD of Qatar Petroleum, a member of the Qatar’s Finance Policy Committee, a Board member of various other companies including Qatargas, its sister companies and QASCO. Mr. Al-Shaibi is the Chairman of QFC Authority Board Audit and Risk Committee).
- Ian Cormack, Deputy Chairman (previously European Chief Executive of AIG Inc)
- John Coomber, NED (previously CEO of Swiss Re)
- Mike Peachey, NED (CEO of CTC Axiom and of the Insurance Services Division of Charles Taylor Consulting plc)
- Stuart Pearce, NED (previously CEO of QFCA where he remains a non executive board member)
- Leonard Schrank, NED (Co-founder, Chairman and CEO of ACT3 Technologies LLC, and previously CEO of SWIFT (Society for Worldwide Interbank Financial Telecommunication)).
- Max Taylor, NED (Currently Chairman of Mitsui-Sumitomo London Insurance Companies and previously Chairman of Lloyd’s of London.
- Khalid Al Mughesib, Deputy CEO (previously with Qatar Petroleum and Al Koot Insurance & Reinsurance Co. (QP Captive) as Energy Insurance Manager and Al Jasr Takaful as General Manager. He brings 18 years of experience in local, regional and international insurance
RI3K (Reinsurance and Insurance for the 3rd Millennium) is the privately owned paperless trading service for the insurance and reinsurance industry. RI3K allows all types and classes of large commercial insurance and facultative and treaty reinsurance to be transacted over the Internet. RI3K has over 30 staff based in London looking after a blue chip client base including AON, BMS, Aviva, RSA, Brit Insurance and Ace.
The Qatar Financial Centre (QFC) is a financial and business centre established by the Government of Qatar and located in Doha. It has been designed to attract international financial services institutions and major multi-national corporations in particular those operating in the reinsurance, captive insurance and asset management sectors and to encourage participation in the growing market for financial services in Qatar and elsewhere in the region. The QFC operates to international standards and provides a first class legal and business infrastructure for those operating within the QFC. The QFC was created by Qatar Law No. (7) and has been open for business since 1 May 2005.
The QFC Authority is the commercial, administrative and legislative body responsible for leading the expansion of Qatar’s financial services sector, providing a uniquely sustainable platform for regional growth in reinsurance, captive insurance and asset management.
About Marlin & Associates
Marlin & Associates Holding LLC is a boutique investment banking and strategic advisory firm specializing in acquisitions and divestitures of U.S. and international middle-market firms that provide technology, digital information and healthcare-related products, technology and services. The firm is headquartered in New York, NY and has additional offices in Washington, DC and Toronto, Canada.
Marlin & Associates Securities LLC, a wholly-owned subsidiary of Marlin & Associates Holding LLC, is a broker-dealer registered with the Securities and Exchange Commission and is a FINRA/SIPC member firm (www.finra.org). Investment banking and/or securities are offered through Marlin & Associates
Securities LLC. Marlin & Associates' professionals have advised on more than 200 successfully completed transactions. More information is available at www.MarlinLLC.com.