QBE has increased its underwriting at Lloyd’s by 25% to become the largest underwriter in the market. Reports say QBE has boosted premium capacity at Lloyd’s to $2.5 billion from its 2002 commitment of $2.02 billion.

Ace, which was previously the largest underwriter at Lloyd’s, has cut its Lloyd’s business by 19% to $1.77 billion.

QBE’s rapid recovery from the 2001 loss – its only loss in 20 years – and CEO Frank O’Halloran’s indication that earnings this year could be as much as 50% higher than last year have prompted analysts to look more favourably on QBE stock. The QBE share price rose 6% last year and has done even better this year. Last year profit grew 23% and net premiums grew 22%.

QBE is managing agent for three syndicates representing more than 7% of the Lloyd’s market, and specialises in diversified general insurance and reinsurance.