QBE confirms strategic review of US operations
QBE has confirmed that a strategic review of its US middle market business is taking place, following disappointing end of year results.
The company made the comments following reports it was looking to offload its US insurance unit Winterthur.
The Australian-based company reported a net loss after tax of $254 million as a result of large one-off costs primarily associated with its North American operations relating to prior year claims, write-off of goodwill and intangibles and restructuring costs.
The US middle market business represents around $900 million of gross written premium, mainly property/casualty business written through a number of agencies across the US.
John Neal, QBE's chief executive officer, said: "We are well advanced in implementing remediation work which will allow QBE's North American business to return to profit. As part of this process, we continue to assess options for various components of the US business, including the US middle market business.
“The review will include a continuing focus on improving the profitability of the middle market business, consideration of opportunities to increase scale and support for our business partners, refining the business strategy and operating model and exploring options for a potential sale of all or part of the middle market business.
“Consistent with our strategic objectives to return the North American business to profit and to deliver on our performance targets, the time is right to consider our longer term plans to maximise shareholder value.”
