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.”
