AM Best Affirms Credit Ratings of QBE Insurance Group Limited’s Key Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of QBE Europe SA/NV (Belgium), QBE UK Limited (United Kingdom), and the pooled members of QBE North America Insurance Group (see list below). These companies are key operating subsidiaries of QBE Insurance Group Limited (QBE) (Australia), the non-operating holding company of the QBE group of companies. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect QBE’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

QBE’s balance sheet strength assessment is underpinned by consolidated risk-adjusted capitalisation at the strongest level as of year-end 2023, as measured by Best’s Capital Adequacy Ratio (BCAR). Prospectively, AM Best expects QBE’s risk-adjusted capitalisation to remain at least at the very strong level. QBE’s balance sheet strength assessment is supported by the group’s conservative investment portfolio and an appropriate reinsurance programme. In addition, as a regular capital markets participant, QBE benefits from strong financial flexibility and has demonstrated a trend of decreasing financial leverage in recent years. The group employs a prudent reserving approach, with a record of favourable prior-year reserve development in most years. Nonetheless, adverse development of the central estimate (excluding discount and risk adjustment) has been observed in 2022 and 2023, largely driven by QBE’s North American operations.

The group’s strong operating performance assessment reflects its record of robust underwriting performance, supported by its diverse earnings profile. Ongoing underwriting portfolio management has supported improved technical performance in recent years. The group’s net/net combined ratio of 91.2% for 2023 represented a 3.8 percentage point improvement compared with 2022, as calculated by AM Best on an IFRS 17 basis.

QBE’s favourable business profile assessment reflects its excellent geographic diversification and strong competitive positions in its core markets, with an established focus on global commercial lines insurance.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, for the following pooled members of QBE North America Insurance Group:

• General Casualty Company of Wisconsin
• General Casualty Insurance Company
• NAU Country Insurance Company
• North Pointe Insurance Company
• Praetorian Insurance Company
• QBE Insurance Corporation
• QBE Reinsurance Corporation
• QBE Specialty Insurance Company
• Regent Insurance Company
• Southern Pilot Insurance Company
• Stonington Insurance Company

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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