Fitch Ratings has revised the outlook of Australia-based QBE Insurance Group and its subsidiaries to ‘positive’ from ‘stable’, while affirming QBE’s long-term issuer default rating at ‘A-‘.
The agency also maintains the insurer financial strength ratings of the company’s core subsidiaries’ at ‘A+’ (Strong).
According to Fitch, the positive outlook reflects QBE's improving financial performance and solid capitalisation metrics, as well as the non-life insurance group's ‘favourable’ company profile.
Analysts point out that over the past few years, QBE's underwriting performance has significantly improved thanks to ongoing premium rate increases and various group-wide underwriting initiatives to lower earnings volatility.
Fitch reports that QBE's US$3.5 billion of long-tail reserves reinsurance in its North American and international businesses has eased reserve risk volatility, doubling net profit to US$806 million in the first half of 2024, with all segments showing an underwriting surplus.
Moreover, the agency notes that it ranks QBE's company profile as 'favourable' due to its favourable business profile and neutral corporate governance, in comparison to other Australian insurers.
