QBE expects to report a loss of around $US250 million ($274 million) for 2013 due to writedowns from its North American operations.

It will write down around $US600 million ($658 million) of goodwill from the US operations and increase its claims provision.

Chairman Belinda Hutchinson has announced she will step down in March, a year early. She will be replaced by Marty Becker.

Group CEO John Neal says an analysis of the situation by the new North America executive team has resulted in the group deciding to increased its provisions for prior accident year claims and write down identifiable intangibles and other assets being held by its US lender-placed business as well as goodwill in the North American business.

“These decisions will allow our North American business to return to profit in 2014. Regrettably these charges and provisions increase our target combined operating ratio and reduce our expected insurance profit margin and reported profit for 2013.

“It is disappointing that in a year when we made excellent progress in improving our current accident year profitability, strengthened our key capital ratios and our balance sheet, successfully launched our Operational Transformation Program and strengthened our executive team, that we continue to be hampered by the past.”

More details in our regular bulletin this afternoon.