The QBE Group’s outlook has been downgraded from “positive” to “stable” by S&P Global Ratings.

The revised outlook follows the insurer’s recent forecast of a $US1.2 billion ($1.5 billion) after-tax loss for last year.

QBE says the stable outlook reflects S&P’s expectation that earnings will rebound this year and next year due to lower attritional claims, an improved expense base and benefits flowing from remediation of its North American, Asia-Pacific and Latin American operations.

S&P affirmed QBE’s A- issuer credit rating and A+ issuer credit ratings and financial strength ratings on the group’s core operating companies.

QBE Group CEO Pat Regan says the ratings update confirms QBE’s financial strength.

“Following an especially challenging year that included an unprecedented cost of catastrophes, the affirmation of QBE’s current ratings is pleasing and confirms the continued strength of QBE’s balance sheet,” he said.