Australia-based insurance group QBE will kill off its North American middle-market business, the group said, citing “performance challenges over several years”.
“The closure of middle-market will serve to refocus North America’s strategy on those businesses which hold more meaningful market position, relevance and scale,” QBE said.
Expect “no impact” on appetite or strategy in the core businesses of specialty, crop and commercial, QBE assured.
Non-renewals on the existing book of some $500 million in gross written premium will begin soon enough to deliver some premium reductions in 2024 “before falling more substantially in FY25”.
QBE will take a $100 million charge against earnings to cover costs of the business closure, but the closure is expected to have only “limited impact” on the 2024 group combined operating ratio, management assured.
Based on a preliminary view of first half results, QBE said it continues to expect mid-single digit growth in FY2024 group gross written premium at constant FX rates and a group combined operating ratio near 93.5%.
That still preliminary view to H1 shows GWP growth near 3% year on year in constant FX and a “modest” level of unfavourable prior year period development. The 5M catastrophe tally had come to $500 million, still below the H1 cat budget of $609 million.
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Source link : https://www.intelligentinsurer.com/qbe-shutters-north-america-mid-market-sees-no-impact-on-core-appetites
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Publish date : 2024-06-19 09:49:29
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