News: QBE QBE Insurance Group Updates On Portfolio Simplification, 2019 Reinsurance Renewal &...

Dec 11 (Reuters) - QBE Insurance Group Ltd (QBE) :

• UPDATES ON PORTFOLIO SIMPLIFICATION, 2019 REINSURANCE RENEWAL AND A THREE-YEAR OPERATIONAL EFFICIENCY INITIATIVE
• ANNOUNCES 3- YEAR OPERATIONAL EFFICIENCY PROGRAM TARGETING NET COST SAVINGS OF $130 MILLION, EXPENSE RATIO OF AROUND 14% IN 2021
• COMPLETED GROUP’S PORTFOLIO SIMPLIFICATION AGENDA WITH SALE OF ITS INSURANCE OPERATIONS IN PUERTO RICO, INDONESIA AND PHILIPPINES
• 1:20 AND 1:200 YEAR PROBABLE MAXIMUM LOSS FOR NORTH AMERICAN HURRICANE WILL FALL BY AROUND 20% AND 25% RESPECTIVELY
• QBE HAS FULLY PLACED ITS 2019 REINSURANCE PROGRAM, WHICH IS EXPECTED TO SAVE AROUND $125 MILLION IN REINSURANCE COSTS
• "REMAIN CONFIDENT OF ACHIEVING AN IMPROVED COMBINED OPERATING RATIO AND HIGHER OVERALL PROFITABILITY IN 2019 COMPARED WITH 2018"
• 1:20 & 1:200 YEAR PROBABLE MAXIMUM LOSS FOR AUSTRALIAN CYCLONE EVENTS WILL FALL BY AROUND 20% AND 35% RESPECTIVELY
• FEATURES OF GROUP'S 2019-2021 OPERATIONAL EFFICIENCY PROGRAM INCLUDE MORE THAN $200M IN GROSS COST SAVINGS BY 2021
• ABOVE $200M GROSS COST SAVINGS BEFORE UNDERLYING INFLATION & FURTHER INVESTMENT IN BRILLIANT BASICS PROGRAM, TECH & DIGITISATION
• 2019 CATASTROPHE PROGRAM SIGNIFICANTLY REDUCES PROBABLE MAXIMUM LOSS
• FEATURES OF GROUP'S OPERATIONAL EFFICIENCY PROGRAM ALSO INCLUDES AROUND $95 MILLION OF RESTRUCTURING COSTS INCURRED OVER 2019-2020
• "REFLECTING STRENGTHENED CATASTROPHE PROTECTION, NEW STRUCTURE DELIVERS A MODEST UPLIFT IN BOTH OUR S&P & APRA CAPITAL RATIOS"