QBE is merging three of its divisions to create a consolidated European reinsurance division as a unified front for short-tail and long-tail lines business.

QBE Re Europe combines the casualty portfolio of Lloyd's Syndicate 2000, the treaty book of Lloyd's Syndicate 566 and QBE Reinsurance (Ireland).

Syndicate 566 underwriter Jonathan Parry, who has been appointed MD of the new division, says QBE Re Europe will pursue business in its liability reinsurance book to counter-balance the company's strong short-tail property business.

The creation of a branded reinsurance outfit will also help QBE clearly delineate its insurance and reinsurance operations.

"We have a substantial book of European business written in Lloyd's and the company market in Dublin, but that is very much an area we want to expand in," Mr Parry said.

"We'd like to integrate our long-tail and short-tail teams as a base to start cross-selling - offering our long-tail clients short-tail business and vice versa."

About 60% of QBE Europe's reinsurance business is short-tail property, with liability accounting for 25% of its book.

"We would like to increase our international liability reinsurance book out of Europe," Mr Parry said. "We have the contacts, on the property side particularly, and we want to use those to be able to grow the long-tail lines as well."

He says growth will not come at the expense of profitability, saying the company will increase its books when the time is right.