QBE’s US reinsurance operations are showing more than a hint of the underwriting discipline that is helping the group outperform its competitors in Australia. 

For the six months to June 30, the reinsurance division booked a net profit of $US4.1 million ($4.8 million), compared with a loss of $US9.6 million ($11.4 million) in the previous corresponding half.

According to figures lodged with the Reinsurance Association of America, QBE’s gross written premium from reinsurance was up 39% to $US919 million ($1.1 billion) while the combined ratio improved from 110% down to 98.3%. Across the US reinsurance industry, the combined ratio was 93.8%, down from 97.5%.

Investment income from QBE’s operations dropped 37% to $US10.8 million ($12.7 million). A $US13.3 million ($15.8 million) net capital loss for the half year compares with a $US3.2 million ($3.8 million) profit last year.

Ibisworld senior analyst Raghu Rajakumar says the reinsurance result reflects disciplined underwriting and effective loss mitigation across the group.

“With the focus QBE is taking in terms of a disciplined approach to expenses, premium pricing and cost ratios, they are in a prime position to continue improving their market share in all the sectors they are involved in – Australia, America, Europe and Asia,” he told insuranceNEWS.com.au.

QBE booked a 19% rise in net profit to $1.02 billion across the group for the six months to June 30.