Standard & Poor’s (S&P) has upgraded its rating outlook on QBE from stable to positive, based on expected improved earnings, less volatility and a return to top-line growth.

It has also affirmed its A+ financial strength ratings on QBE’s core operating companies and its A- issuer credit rating.

The announcement follows an investor update in Sydney last week, when the insurer detailed its growth ambitions for the North America division.

During the presentation QBE outlined strong results in Australia and New Zealand, plus its “transformative journey” in North America.

Radical change was required in 2013 when the combined operating ratio was 112%, but substantial turnaround work has pushed that down to 99% and left the division “positioned for profitable growth”.

The aim is to build a leading specialty franchise in North America, lifting gross written premium (GWP) in specialty from $423 million last year to $600 million this year.

S&P expects the group to grow GWP by at least 2% per year in 2017 and 2018, supported by retention and cross-sell initiatives and the launch of other products in North America.

“The positive outlook… acknowledges the successful completion of the group’s remediation activities, including its commitment to a strengthened reinsurance program, the divestment or risk transfer of underperforming and non-core product lines and businesses, as well as the dissemination of more robust reserving controls across the group,” S&P says.

“We note that all divisions contributed to the group’s underwriting profit in fiscal 2015, and we anticipate material improvement in the profitability of its North American operations to a level more in line with the group by the end of fiscal 2018.”