Major Aussie insurer QBE has ratings affirmed

Major Aussie insurer QBE has ratings affirmed | Insurance Business

Major Aussie insurer QBE has ratings affirmed
QBE has had its ratings affirmed by international ratings agency A.M Best.

The insurer has seen its financial strength rating (FSR) maintained at A (excellent) with the issuer credit ratings (ICR) of “a.”
A.M Best also gave the business a stable outlook for its ratings.

“The ratings reflect A.M. Best’s expectation that the group’s consolidated risk-adjusted capitalisation will be maintained at a strong level,” the ratings agency said in a statement.
“The group’s risk-adjusted capitalisation and financial leverage metrics improved in 2014 and in 2015, supported by a series of capital actions, which included the raising of equity, the refinancing of debt and the sale of non-core assets.”
A.M Best also noted that the company has been able to turn itself around from a disappointing 2013 thanks to “solid underwriting results,” across the business.
“QBE benefits from a track record of good technical performance, as demonstrated by a five-year average combined ratio of 96% (2011-2015),” the statement continued.
“Overall profits have been produced in each of the past five years, apart from in 2013, when a pre-tax loss was reported due to the write off of goodwill and intangible assets, primarily relating to the group’s North American business unit.
“For 2015, a combined ratio of 95% was reported, reflecting solid underwriting results across all QBE’s operational divisions and in spite of challenging conditions in its core markets.”