QBE confirms it’s still on the prowl
QBE Australia CEO Terry Ibbotson has confirmed the insurance giant is ready to pounce on any major local acquisition provided it fits the company’s strict acquisition criteria.
Speaking at an Australia and New Zealand Institute of Insurance and Finance seminar last week, he forecast further consolidation in the local insurance market and said QBE will be “a willing participant”.
The insurer has $3.3 billion in available surplus capital, putting it in a powerful bargaining position.
But Mr Ibbotson says any deal would have to meet strict QBE criteria, including a requirement to be earnings per share accretive in year one.
“That’s very difficult to deliver in this climate,” he said.
Mr Ibbotson says QBE has followed through on its forecast premium rate increases, putting through a rate uplift of 5.7% in March.
“We won’t write the business if we don’t get those rate increases,” he said. “But we believe service will win the business.”
He says other insurers were forecasting rising rates while engaging in “aggressive market competition”.
Speaking at an Australia and New Zealand Institute of Insurance and Finance seminar last week, he forecast further consolidation in the local insurance market and said QBE will be “a willing participant”.
The insurer has $3.3 billion in available surplus capital, putting it in a powerful bargaining position.
But Mr Ibbotson says any deal would have to meet strict QBE criteria, including a requirement to be earnings per share accretive in year one.
“That’s very difficult to deliver in this climate,” he said.
Mr Ibbotson says QBE has followed through on its forecast premium rate increases, putting through a rate uplift of 5.7% in March.
“We won’t write the business if we don’t get those rate increases,” he said. “But we believe service will win the business.”
He says other insurers were forecasting rising rates while engaging in “aggressive market competition”.