The erosion of AIG’s position in the US reinsurance market appears to be opening up some opportunities for QBE’s reinsurance operations.

Reinsurance Association of America figures for the March quarter show gross written premium for QBE Re has jumped from $US109.7 million ($136.5 million) to $US613.2 million ($762.9 million) in 12 months, although its combined ratio has risen from 97% to 108.7%.

Policyholders’ surplus has risen from $US573.9 million ($714 million) to $US946.4 million ($1.18 billion).

Ibisworld analyst Richard Jeremiah says the capital injection from the parent group into the policyholders’ surplus suggests QBE Re is preparing for potential exposures in the risks it has assumed over the year.

He says it could also mean QBE Re is jostling for position as business is pulled away from US number three reinsurer Transatlantic Re, in which AIG until last week held a majority interest.

AIG now holds 13.9% of Transatlantic after selling 29.9 million shares for $US1.136 billion ($1.43 billion) yesterday.

Mr Jeremiah says QBE Re was at one stage seen as a possible buyer for AIG’s holding.