QBE emerging markets CEO steps down after ‘disappointing’ results

Australia’s re/insurer QBE said on Aug. 17 that the company’s CEO of emerging markets David Fried is stepping down after the operations reported disappointing underwriting results in the first half of 2017.

Fried will continue to support QBE in a strategic advisory capacity to facilitate the transition to two separate divisions. Jason Brown (currently group chief risk officer) and Carola Fratini (currently CEO of Argentina) have been appointed as the new CEOs of Asia Pacific and Latin America, respectively.

The emerging markets division reported a combined operating ratio of 110.8 percent in the first half of 2017 compared to 99.5 percent in the same period a year ago. The “poor” underwriting result reflects a material increase in the current accident year claims ratio across numerous portfolios and regions, in both Asia Pacific and Latin America, coupled with adverse prior accident year claims development, primarily in Hong Kong, according to the statement.

To improve regional focus, QBE's emerging markets division is reverting to two separately managed divisions in Asia Pacific and Latin America. A detailed review has been undertaken to determine the remediation activities required to improve underwriting performance in the second half of 2017 and beyond. In addition to the tightening of underwriting controls and discipline, improved pricing models are being introduced, enhanced reinsurance protections considered and cost reduction plans implemented.

Overall, the group reported a statutory 2017 interim net profit of A$345 million ($273.1 million), up 30 percent from A$265 million in the prior period, reflecting an improvement in the combined operating ratio to 97.5 percent from 99.0 percent in the prior period.

The result included a sixth consecutive half of positive prior accident year claims development of A$107 million, albeit slightly lower than A$196 million in the prior period.

QBE reported constant currency gross written premium growth of 3 percent year on year to A$8.04 billion in the second half of 2017.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Today’s stories

PartnerRe sells New York unit to Employers

Commercial insurance rates decline for 17th consecutive quarter

JLT Specialty brings AIG UK environmental leader to head unit

Fidelis underwriter joins Liberty Specialty Markets in London

Pulse creates new specialty unit in London with Pen Underwriting hire

Chubb North America announces new top counsel manager

Willis Towers Watson hires Mercer exec to lead growth in Kansas

Don't miss our insurtech email newsletter - sign up today