QBE Insurance Group's scale and quality of earnings will further improve, S&P says in affirming its ratings for the business.

The ratings agency retained its long-term issuer credit rating of A- for QBE Insurance Group and A+ for the group’s core operating entities. The outlook for all entities is stable.

“We affirmed the ratings to reflect QBE’s collective strong competitive positions in select insurance segments and sound underlying earnings profile from its well-diversified global operations,” S&P says.

“We expect QBE’s remediation and simplification initiatives, combined with a restructured reinsurance program, to be supportive of… earnings strength and resilience over the next two years.

“The strategic initiatives are showing early signs of benefiting the group, underpinning the A+ ratings.”

QBE management told shareholders at last month’s annual general meeting the business is on course for a combined operating ratio of 94.5-96.5%.

It says improved pricing conditions and a mild North American catastrophe season will offset the financial impact of Australia’s summer natural disasters.

The insurer made a $US390 million ($564.4 million) net profit last year after incurring a $US1.2 billion ($1.7 billion) loss in 2017.