QBE Insurance Focus Areas and Business Strategy

QBE Insurance has a strong focus on its core business areas, with a significant presence in the global insurance market.

The company's focus areas include General Insurance, which accounts for the majority of its business, and Life Insurance, which provides financial protection to individuals and families.

QBE Insurance has a robust business strategy in place, with a focus on growth through expansion into new markets and the acquisition of new businesses.

Key to its success is its ability to adapt to changing market conditions and customer needs, allowing the company to stay ahead of the competition.

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QBE Insurance has a long history that dates back to 1886, when it was founded in Sydney, Australia.

The company started out as the Queensland Insurance Company, and it was established to provide insurance products to the people of Queensland.

QBE Insurance has undergone several name changes over the years, with the most significant one being in 1971 when it became known as QBE Insurance Group.

Today, QBE Insurance is one of the largest general insurers in Australia, with a presence in multiple countries around the world.

The company offers a wide range of insurance products, including home, motor, and business insurance.

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QBE Insurance is making a big push into financial lines and accident & health insurance, with the goal of diversifying its portfolio and achieving a sub-100% combined ratio across the board.

The company's North American business has already seen success in crop insurance, with a combined ratio of 96.6% last year, compared to industry averages of 109.8% and 102.8% respectively.

QBE North America is banking on building out its financial lines and accident & health propositions this year, with a focus on creating a balanced portfolio that includes property, casualty, and specialty lines.

Recent additions to the QBE North America stable have included construction and captive products, which will continue to receive investment from the business.

The company's CEO, Julie Wood, has stated that QBE wants to have new businesses continuously stood up throughout the year, with the intent of staying balanced.

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QBE North America is shifting its focus to financial lines and accident & health, aiming to build a more balanced portfolio.

The insurer has set a target of achieving a sub-100% combined ratio (CR) across the board, with financial lines and accident & health expected to be key drivers of this growth. Financial lines and accident & health already make up a significant portion of QBE's North American business, accounting for just over 50% of its gross written premium (GWP).

Crop insurance, a key area of focus for the insurer, saw a 96.6% CR last year, outperforming the industry average. QBE remains committed to crop insurance despite industry-wide struggles with crop and drought impacts.

The insurer is planning to continue investing in its financial lines and accident & health propositions this year, with a focus on building new businesses and diversifying its portfolio. Recent additions to the QBE North America stable include construction and captive products.

QBE's commercial markets business will be casualty-driven, with property playing a smaller role in a more balanced portfolio. Specialty remains a priority for the insurer, with a focus on standing up new businesses throughout the year.

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Force-placed insurance is a common practice in the US, where lenders purchase insurance for a property owner's home if their policy lapses. This usually happens when borrowers allow their insurance to expire.

The use of force-placed insurance has become increasingly common since the financial crisis, and many experts blame it for contributing to foreclosures. Lenders justify higher premiums because they consider borrowers who don't pay for their own insurance to be a heightened risk.

In 2012, QBE and California agreed to a rate reduction for lender-placed insurance, resulting in an average annual savings of $577 for policyholders. This reduction is a step in the right direction, but more needs to be done to protect consumers.

The Consumer Financial Protection Bureau issued new mortgage servicing rules in January 2013, requiring lenders to warn borrowers in advance of the cost of force-placed insurance and preventing them from imposing policies on many escrowed loans. This change aims to prevent borrowers from being pushed over the foreclosure cliff.

The Federal Housing Finance Agency has investigated the relationships between force-placed insurers and their clients, determining them to be fraudulent and banning future service kickbacks.

QBE Insurance's Gross Written Premium (GWP) is a key indicator of the company's business performance. The GWP is made up of various segments, with Crop being the largest in 2022, accounting for 48.6% of the total.

In 2021, Agriculture was the largest class of business, making up 42.9% of the GWP. The company's GWP is also diversified across various classes of business, including Commercial & domestic property, Professional indemnity, and Accident & health.

The breakdown of QBE's GWP by class of business is as follows:

The building blocks of GWP are quite fascinating. In 2022, crops accounted for 48.6% of QBE's gross written premium, making it the largest segment.

Let's take a closer look at the classes of business that contribute to GWP. Agriculture was the largest class of business in 2022, making up 48.5% of QBE's GWP.

The distribution of GWP across different segments is quite telling. In 2022, QBE's GWP was comprised of 48.6% from crops, 26.1% from commercial, and 25.3% from specialty.

Here's a breakdown of the classes of business that make up QBE's GWP:

QBE Insurance Group Ltd. is expecting a sharp swing to a loss after absorbing one-off hits to its North American operation and the cost of California wildfires and December storms in Australia.

The Australian company anticipates an after-tax loss of about US$1.2 billion for 2017.

A US$230 million hit to the carrying value of deferred tax assets due to the reduction in the U.S. corporate tax rate was booked by QBE.

Additionally, a US$700 million impairment charge on revised assumptions of the value of North American goodwill was made.

A rise in natural disasters in the final quarter of last year added about US$130 million to costs for QBE.

The company has strengthened claims provisions by about US$110 million, primarily in North America and the Asia-Pacific region.

QBE's board will consider the scale of the final dividend and expectations for share buybacks when it finalizes the 2017 results.

The insurer's net profit was up 30% to US$345 million for the six months through June, but its earnings will be dented by significant catastrophe claims.

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QBE North America is looking to simplify its claims process, a move that will help expand best practices across the entire group. This restructuring effort is aimed at providing a consistent experience and value proposition to customers and brokers.

Todd Greeley, formerly the insurer's specialty claims SVP, has been appointed chief claims officer. The recent exit of QBE North America chief underwriting officer Laura Coppola is not a sign of further imminent leadership changes, according to Julie Wood, the CEO of QBE North America.

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QBE North America is reorganizing its claims process, aiming to simplify and streamline it.

Todd Greeley, former specialty claims SVP, has been appointed chief claims officer.

The goal is to have a consistent experience and value proposition for customers and brokers.

The insurer had three separate claims organizations, which they're looking to consolidate into one.

This change is part of a broader effort to optimize the portfolio and grow it.

The recent exit of Laura Coppola, chief underwriting officer, is not a sign of further imminent leadership changes, according to Julie Wood.

However, Wood does note that they're always looking for the right leaders to influence the culture and drive customer service.

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Julie Wood, the CEO of QBE North America, has a long and impressive background in the insurance industry. She has held various leadership positions throughout her career, demonstrating her expertise and adaptability.

Julie Wood's experience in insurance spans over two decades, with her first role as Vice President at Zurich Insurance in 2000. She has since held numerous positions, including Southeast Regional Senior Vice President at Zurich NA from 2007 to 2011.

In 2012, Julie Wood joined Zurich NA as Executive Vice President, marking a significant step up in her career. Her experience in leadership roles has prepared her well for her current position as CEO of QBE North America.

Here's a brief summary of Julie Wood's insurance experience:

QBE Insurance Group's organizational structure is made up of three geographic-based operating divisions. These divisions help the company serve different regions effectively.

The company has a captive reinsurer called Equator Re, which is headquartered in Bermuda. This allows QBE to manage its reinsurer operations efficiently.

QBE also has an offshore service centre in the Philippines. This centre likely handles tasks such as data entry, customer service, and other back-office functions.

Various corporate functions are located in the group head office in Sydney, Australia. This includes departments such as finance, human resources, and marketing.

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QBE Insurance has a strong commitment to community involvement, with a focus on supporting vulnerable populations and promoting social responsibility.

The company's Community Involvement program was established to provide financial support to not-for-profit organizations that align with its values.

One example of QBE's community involvement is its partnership with the Australian Red Cross, which provides disaster relief and support to those in need.

QBE also supports the Starlight Children's Foundation, which brings joy and happiness to seriously ill children and their families.

By giving back to the community, QBE demonstrates its commitment to making a positive impact on society.

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