QBE (ASX: $QBE) announces closure of North America middle-market segment and provides 1H24 performance update

QBE Insurance Group Limited (ASX: $QBE) has announced the commencement of an orderly closure of its North America middle-market segment following an extensive strategic review. The segment represented gross written premium of approximately $500 million in FY23 and has faced performance challenges over several years. The closure aims to refocus North America's strategy on businesses with more significant market position, relevance, and scale. QBE will begin non-renewing middle-market policies in compliance with applicable state regulations, with a restructuring charge of around $100 million before tax to be recorded in the FY24 result to account for closure costs. The closure is not expected to have a significant impact on QBE's FY24 Group combined operating ratio, and further details will be provided at QBE's 1H24 result on 9 August, 2024.

Executive commentary on strategic review outcome and 1H24 performance update

Following an extensive strategic review, QBE has decided to commence the orderly closure of its North America middle-market segment. This decision is in line with our commitment to refocus our North America strategy on businesses that hold more meaningful market position, relevance, and scale. The closure will not impact our appetite or strategy for North America's three core businesses, Specialty, Crop, and Commercial. We anticipate the closure to have limited impact on QBE's FY24 Group combined operating ratio. Additionally, we have provided an update on our 1H24 performance, including information on premium growth, catastrophe costs, prior year development, and investment result. We continue to expect FY24 Group constant currency gross written premium growth in the mid-single digits and a FY24 Group combined operating ratio of approximately 93.5%.

Summary of QBE's strategic review outcome and 1H24 performance update

QBE Insurance Group Limited (ASX: $QBE) has announced the commencement of the orderly closure of its North America middle-market segment following a strategic review. The closure aims to refocus North America's strategy on businesses with more significant market position, relevance, and scale. QBE will begin non-renewing middle-market policies in compliance with applicable state regulations, with a restructuring charge of around $100 million before tax to be recorded in the FY24 result to account for closure costs. The closure is not expected to have a significant impact on QBE's FY24 Group combined operating ratio. Additionally, QBE has provided an update on its 1H24 performance, including information on premium growth, catastrophe costs, prior year development, and investment result. The company continues to expect FY24 Group constant currency gross written premium growth in the mid-single digits and a FY24 Group combined operating ratio of approximately 93.5%.