Fitch sees QBE outlook steady on higher profits and lower risk

It cited continued operational strength and reduced earnings volatility as key drivers.

QBE Insurance Group is expected to maintain stable performance following improved underwriting results and higher profitability in 2024. 

Fitch Ratings cited continued operational strength and reduced earnings volatility as key factors supporting QBE’s outlook.

The insurer’s combined ratio improved to 91% in 2024, with return on equity rising to 17%.

Net income reached $1.8b, up from $1.4b in 2023. 

Reserve risk is expected to ease following reinsurance of $3.5b in long-tail liabilities.

Financial leverage is projected to rise to 26% due to recent capital management moves, but Fitch expects this to decline gradually.

The group has exited its North American middle-market segment to focus on higher-performing businesses.