Analysts have urged QBE to concentrate on organic growth after CEO Pat Regan indicated it may be interested in Commonwealth Bank’s general insurance arm.

Bell Potter Securities Head of Research and Insurance Analyst TS Lim told insuranceNEWS.com.au the insurer should “focus on what it is doing instead of buying”.

“I think it shouldn’t do it, because there will be a lot of management distractions at a time when things are just getting better for it, so it’s the wrong time to do an acquisition.”

Mr Regan has floated the idea of a bid for the CommInsure business if the chance arises, citing a “scarcity of good assets” in the market.

“So if or when it comes to the market, perhaps we’ll have a look at it,” he told The Australian newspaper last week.

But his priority is to continue improving QBE’s operations. The group staged a strong recovery last year, with a $US390 million ($547.40 million) profit after suffering a $US1.2 billion ($1.68 billion) loss in 2017.

“There is a tonne of stuff to work on – that is our first priority,” Mr Regan said.

IAG, Allianz and Chinese giant Ping An Insurance have been flagged as suitors since CBA announced last June it may sell CommInsure as part of a strategic review.

CommInsure recorded a 51% rise in income to $183 million last financial year, and cash profit almost doubled to $102 million.

“It’s not a bad business, “ Mr Lim said. “I think the returns are pretty strong, but it is a big acquisition for IAG and QBE.”