AM Best has upgraded the long-term issuer credit ratings of QBE subsidiaries from a to a+ and affirmed their financial strength ratings at A.

The action applies to QBE Insurance Europe, QBE Re Europe, QBE Insurance International and pooled members of QBE North America Insurance Group.

QBE’s recent shock announcement that its emerging markets business will record higher-than-expected claims has been factored in by the ratings agency.

“The upgrades… reflect QBE’s consistently good technical performance and solid business profile, as well as the stabilisation of its risk-adjusted capitalisation at a strong level,” AM Best says.