The following is a press release from S&P Global Ratings:...

The following is a press release from S&P Global Ratings:

MELBOURNE (S&P Global Ratings) Aug. 10, 2023--Strong topline premium growth supports the credit outlook for QBE Insurance Group Ltd. and offsets lagging performance areas in the Australia-based insurer. QBE's premiums expanded 13% in the six months to June 30, 2023 year on year--holding up stronger than we expected, and reversing the tapering growth trend toward the end of 2022.

Still, profitability is lagging for QBE (A-/Stable/--; core operating entities A+/Stable/--), with first-half net profit after tax of US$400 million, well short of the halfway mark for our full-year expectations of US$1.3 billion.

This follows higher-than-forecast natural catastrophes, including unusual flood and storm activity in New Zealand at the start of 2023. Ongoing North
American catastrophe activity, and increased allowances for prior year U.S. winter storms and crop damage, is also pulling on margins.

We continue to view the North American operations as a drag on the group's credit profile, with the division's combined ratio spiking to 102.7% in the
first half, against the better group result of 95.0% (both statutory basis). However, the strategy to derisk and modernize the division is evident, and
with ongoing rate strength should flow through to results over the next 12 months.

Balance sheet strength continues to be robust and supported by solid reinsurance protection and risk transfer transactions.

This report does not constitute a rating action.

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QBE has the balance sheet to grow in any direction it desires, take risk choices, grow another arm. It is a solvent counter-party.

Ash