AM Best revises QBE outlook to stable

Rating agency AM Best has revised the outlook of QBE to stable from negative after QBE under a series of capital actions in 2014.

AM Best also affirmed the A financial strength rating and ‘a’ issuer credit ratings for QBE’s key operating subsidiaries.

The rating agency said that the change reflects its opinion that the group’s consolidated risk-adjusted capitalisation has been restored to a strong level by a series of capital actions implemented during 2014.

“In addition, these actions, which included the raising of equity, the refinancing of debt and the sale of non-core assets, have reduced the group’s financial leverage. A further improvement in these metrics is expected in 2015 supported by the disposal of other non-core asset,” said AM Best.

“Positive rating actions are unlikely in the near term. However, the stabilisation of QBE’s performance, risk-adjusted capitalisation and financial leverage at a strong level could result in upward movement of the ratings longer term. Negative rating actions could follow material deterioration in operating performance, risk-adjusted capitalisation or financial flexibility.”