QBE is searching for a new Australian and New Zealand CEO after removing Tim Plant from the role following a weak set of results amid a difficult global environment.

Australian and New Zealand insurance profit was $US148 million ($189 million) for the six months to June 30, down $US99 million ($127 million) on the corresponding period last year.

Gross written premium (GWP) fell 3% to $US1.86 billion ($2.38 billion), while the claims ratio moved to 67.7% from 62.9%.

Group statutory net profit fell 46% to $US265 million ($339 million) and GWP slipped 7% to $US8.11 billion ($10.37 billion). The result includes a $US283 million ($362 million) impact from the effect of falling interest rates on outstanding claims accounting.

“While the interim result is broadly in line with our expectations, QBE’s business is not immune to macro conditions that are challenging the returns of all insurance companies,” Group CEO John Neal said last week.

“This is particularly evident in our Australian and New Zealand operations, where cumulative pricing declines concurrent with heightened claims inflation have detracted from performance in several of our short-tail classes, exacerbated by the well-publicised deterioration in the NSW compulsory third party (CTP) scheme.”

Mr Plant was appointed to the role in July last year, but Mr Neal says “a lot has changed in the past 13 months in terms of market conditions and it is just a tougher place to be and needs a different type of leadership”.

Australian premium pricing has lagged behind claims inflation across a number of lines after recording healthy increases from 2011-13, with the trend deteriorating through the first half of this year.

“A swift and decisive response is required and will encompass a combination of price increases, tightened terms and conditions and improved risk selection,” Mr Neal said.

The company says CFO Pat Regan will take interim responsibility for the Australian and New Zealand business during the search for a permanent head.

QBE is seeking minimum rate increases of 5% in property and motor, having made increases in CTP.

The Australian division has also appointed Declan Moore, previously group chief actuary, to the new position of Chief Underwriting Officer.

“This role has been created to further advance our technical ambitions and capability and to ensure we can build on the groundwork already laid to improve our underwriting process,” Mr Regan said.

In other divisions, North American GWP fell 9% to $US2.82 billion ($3.61 billion), European GWP slipped 6% to $US2.51 billion ($3.21 billion) and emerging markets GWP improved 9%. Equator Re GWP gained 15%.

The group’s combined operating ratio blew out to 99% from 93.4%, excluding asset sales.

Adjusted for the interest rate impact on claims, the ratio was 94%, within QBE’s forecast range.

QBE has cut its 2016 GWP target range to $US13.7-$US14.1 billion ($17.5-$18.04 billion) from a previous forecast of $US14.2-$US14.6 billion ($18.2-$18.7 billion).