QBE Europe expects markets to remain competitive next year.

CEO Steven Burns told an investor briefing in London last week the insurer will continue to focus on disciplined underwriting, client retention and maintaining performance in the face of tough competition in most lines.

He says the company has successfully remediated most of its underperforming portfolios and has a review under way to identify future growth opportunities in Europe.

The division has set 10 core priorities that include changing its management structure, talent management and employee engagement, maintaining performance and continuing portfolio remediation.

Chief Risk Officer Phil Dodridge says QBE supports the principles of Solvency II and, although there are challenges and uncertainties over the regulatory framework, it is working towards implementation by January 1 2014.

He says external risks to profitability come from continuing soft markets for many products, increasing claims activity and reduced client appetite for insurance.

Chief Underwriting Officer for Property, Casualty and Motor Ash Bathia says plans to grow gross written premium in continental Europe to €750 million ($951 million) in five years, from about €310 million ($393 million), have been put on hold because of the Eurozone crisis, lack of attractive acquisition opportunities and poor pricing and performance – particularly in property and motor.

The group is instead focusing on building market presence and expertise in the principal western European countries of France, Germany, Italy and Spain.

QBE Re Chief Underwriting Officer Jonathan Parry says the division, formed last month to consolidate the company’s global reinsurance operations, has seen significant rate increases following last year’s catastrophes but found rises harder to obtain for mid-year renewals.

He says the European market is stable but casualty lines are flat, with specific “bright spots” such as UK motor.