QBE’s board has adjusted its short-term incentive (STI) target for this year’s remuneration settings.

The board’s remuneration committee voted to increase the threshold level for QBE’s return on equity (ROE) target from 5% to 6%.

“Each year we set group ROE targets for STI and LTI (long-term incentive) purposes that reflect the group’s business plan and the operating environment,” the insurer’s remuneration report says.

“We anticipate both global pricing and investment markets will remain challenging this year, and accordingly our focus will be on maintaining underwriting discipline and exercising strict cost control, while continuing to invest in our strategic growth and operational initiatives.”

The group ROE target range for STI is 6-12%, with on-target performance set at 8.5%.

The target range for LTI, based on three-year average return, remains at 7-10.6%.