QBE’s CEO of Emerging Markets David Fried will step down following a poor performance by the division.

The insurer this morning announced overall net profit of $US345 million ($440 million) for the six months to June 30, up 30% on the previous corresponding period. The combined operating ratio improved to 97.5% from 99%.

However, as forewarned two months ago, Emerging Markets’ combined operating ratio blew out to 110.8% from 99.5%.

QBE says it will be split into 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,” QBE says.

“David Fried will step down from his current role as CEO of Emerging Markets but will continue to support QBE in a strategic advisory capacity.”

Jason Brown, currently Group Chief Risk Officer, and Carola Fratini, currently Argentina CEO, have been appointed CEOs of Asia Pacific and Latin America respectively.

Mr Fried joined QBE in April 2013 as CEO Asia Pacific before being promoted to CEO Emerging Markets in August the following year. Prior to that he was Regional CEO Asia Pacific for Allianz.

More details in our regular bulletin on Monday.