QBE’s “very strong” balance sheet will support its key operating subsidiaries in Britain, North America and Europe, AM Best says.

The ratings agency has affirmed the subsidiaries’ financial strength ratings at A (excellent) and long-term issuer credit ratings at a+ (excellent). The outlook for these ratings is stable.

“The ratings reflect QBE’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management,” AM Best said.

It says QBE’s strong operating performance reflects a record of robust underwriting, supported by a diverse earnings profile. 

“Ongoing underwriting portfolio management has supported improved technical performance in recent years. QBE’s favourable business profile assessment reflects its excellent geographic diversification and strong competitive positions in its core markets, with an established focus on global commercial lines insurance.”

In a business update last month, QBE said it expects first-half group gross written premium of about $US13.1 billion ($19.6 billion), up about 3% on a constant currency basis, with net insurance revenue expected to be about $US8.4 billion ($12.6 billion).

It also announced it will exit its North American middle market segment, which recorded GWP of about $US500 million ($747 million) last year, to focus on better-performing business in the region.

QBE will release its half-year results on August 9.