A.M. Best Affirms Ratings of QBE Insurance Group Limited
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At the same time,
Additionally,
The ratings of
QBE’s consolidated risk-adjusted capitalisation is expected to recover to a strong level at year-end 2012, following deterioration in 2011 due to growth from acquisitions and lower than expected pre-tax earnings. The anticipated recovery reflects a capital raising of around
QBE is expected to produce a combined ratio of around 92% for 2012. This forecast includes a substantial allowance for catastrophe and large risk losses for the remainder of the year. The group has a track record of producing stable and strong technical results (including in years with heavy catastrophe losses), in part reflecting its well diversified portfolio. Investment income is expected to contribute positively to the group’s results. QBE’s investment portfolio primarily consists of highly rated fixed income securities and cash.
QBE’s portfolio of insurance and reinsurance property/casualty business is well-diversified by both product and territory. The group maintains a robust business profile, largely derived from its presence in the Australian and
A sustained improvement in risk-adjusted capitalisation could put positive pressure on the ratings of QBE and its rated non-US operating entities. Deterioration in risk-adjusted capitalisation or a material decline in operating performance could put negative pressure on the ratings.
The following debt ratings have been affirmed:
QBE Insurance Group Limited—
- “bbb+” on
- “bbb+” on
- “bbb+” on
- “bbb+” on
- “bbb” on
- “bbb-” on
- “bbb-” on <money>GBP 300 million 6.857% perpetual preferred securities (issued by
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; “Rating Members of Insurance Groups”; “Catastrophe Analysis in A.M. Best Ratings”; “Equity Credit for Hybrid Securities”; and “Insurance Holding Company and Debt Ratings”. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best
A.M. Best
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
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Source: A.M. Best
Copyright: | Copyright Business Wire 2012 |
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A.M. Best Affirms Ratings of QBE Insurance Group Limited’s U.S. Subsidiaries; Upgrades Issuer Credit Ratings of Certain Subsidiaries
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