Giant insurer QBE has struck a deal to offload its global trade credit and surety business to Swiss Re Corporate Solutions, in a move the insurer says will sharpen its strategic focus and free up capital for growth elsewhere in the group.
The portfolio, which spans Australia Pacific and the UK, is backed by a specialist team and provides cover to corporates against payment and performance risk linked to their receivables. QBE’s French Bonds business is excluded from the transaction and will remain with the group.
“Divesting QBE’s Global Trade Credit and Surety business to Swiss Re Corporate Solutions supports our ongoing strategic focus on optimising our portfolio, enabling the reallocation of capital and resources towards growth opportunities that align more closely with QBE’s long-term strategy,” said QBE Group chief executive Andrew Horton in a firm's release.
Swiss Re Corporate Solutions, the commercial insurance arm of Swiss Re Group, provides risk transfer solutions for large and mid-sized corporates around the world, backed by the balance sheet of one of the world’s largest reinsurers.
Read next: QBE lifts profits above US$2 billion with best underwriting result in years
Ivan Gonzalez, CEO of Swiss Re Corporate Solutions, said the acquisition is an "important milestone" for his his firm. "It allows us to expand our offering in this attractive segment by strengthening our global credit and surety platform with a well-managed, profitable portfolio and a highly experienced team," said Gonzalez.
Sue Houghton (pictured), QBE's Australia Pacific CEO said the incoming owner is looking to build on the existing platform.
“They’re looking to draw on our experience, our people and our practical know‑how as they look to build momentum and grow the business,” she said.
In their separate releases, both companies said they were focused on ensuring continuity for employees, customers and distribution partners through the transition. Completion of the deal is subject to regulatory approval and could take several months.
