QBE's conservative investments support stability

Its net/net combined ratio improved to 91.2% for 2023.

QBE Insurance proved itself to have a very strong balance sheet strength, robust operating performance, favourable business profile, and sound enterprise risk management, AM Best said.

QBE’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level, with expectations of maintaining this level in the future. 

The group’s conservative investment portfolio and appropriate reinsurance program support this assessment. QBE benefits from strong financial flexibility due to its regular capital market activities and has reduced financial leverage in recent years. 

Whilst the group generally shows a trend of favourable prior-year reserve development, adverse development was noted in 2022 and 2023, mainly due to North American operations.

QBE’s strong operating performance is highlighted by its solid underwriting performance and diverse earnings. The net/net combined ratio improved to 91.2% for 2023, a 3.8 percentage point increase from 2022. 

The group’s favourable business profile is attributed to its excellent geographic diversification and strong market positions in global commercial lines insurance.