Insurance news

Global re/insurance broker Miller has announced its foray into the parametric insurance arena with the creation of a new global division.

Led by Alice Glenister, the parametric insurance team set to focus on a vast array of sectors and industries.

The team aims to extend the range of insurance triggers beyond nat cat events, developing custom-tailored solutions that address client needs and risk exposures, including programs like reduction in yield, cyber downtime, and wind deficiency policies.

Glenister, who recently transitioned from her role as director of insurance at Mastercard, will head up the London-based team. Her background includes parametric underwriting experience from her tenure at Generali.

Glenister will be supported by Charlie Liddle, joining from OneGlobal, and Rowan Minhas, who moves from another position within Miller. She shared her excitement about leading this new global team, emphasizing the unique benefits of parametric insurance, such as expedited claims processing and increased transparency.

“Working across a range of sectors, we will be able to provide coverage for those risks that were once considered too complex or too difficult to insure, allowing Miller clients access to enhanced risk management capabilities. By harnessing the power of parametric solutions, Miller are poised to redefine the way their clients protect their assets and mitigate risks in an ever-changing world,” Glenister said.

Martin Henderson, head of energy & construction at Miller, expressed enthusiasm about Glenister’s leadership and the formation of the team.

“The formation of this specialized team underscores Miller’s ongoing commitment to innovation and client-centricity, allowing us to develop and implement cutting-edge parametric solutions tailored to meet the diverse needs of clients across various industries and geographic regions,” Henderson said.

Besides parametrics, the re/insurance broker has also bolstered its energy proposition with the appointment of Hayley Kennedy as client advocate for the upstream and onshore energy divisions.

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Artificial intelligence (AI) has grown to encompass a broad range of financial technology applications, and insurtechs billing their offerings as “AI-powered” must work harder to distinguish themselves in a crowded marketplace, an expert has warned.

Dr. Andrew Johnston (pictured), global head of insurtech at Gallagher Re, suggested that the label “AI” is becoming increasingly redundant as the technology becomes inherent among insurtech offerings.

“Historically, I would say that AI is probably suffering the same fate as the label of ‘insurtech,’ in that it now is a very broad church,” he told Insurance Business.

“It applies to almost everything, and every modern technology that’s being built right now has an AI-type component. So, the term itself is arguably redundant because pretty much any new initiative, business, or capability coming into our industry will be technologically enabled.

“I think we just want to be careful to be specific and to understand the various iterations and sub-sectors of AI and their applicability to the industry so that [AI] doesn’t become a confused term that people throw around.”

The generative AI boom: How should insurtechs position themselves?

Despite his reservations about the liberal use of the “AI” label, Johnston said he is optimistic about the advancements in the technology, particularly in generative AI.

“Looking at technology in isolation, generative AI possibly has the biggest application for us. I also think linear algorithms for things like pattern and anomaly detection have huge applications in our industry, particularly around claims. Clustering and large language models have a significant application in distribution, particularly when we think about things like embedded insurance,” he said.

But Johnston stressed that insurtechs’ focus should be on applying technology to create value and efficiencies in the industry, not AI for its own sake.

“It’s about understanding the technology’s inherent capability in the context of an insurance company’s workings and where it can get the most value,” he said. “To do that, the technology firm must understand the insurance industry well enough to know the right applications.”

Where does the global insurtech market stand today?

Though Gallagher Re’s recent global insurtech report found that funding for the sector declined 43.7% on-year in 2023 (from $8 billion in 2022 to $4.51 billion in 2023), Johnston believes that the insurtech market is healthy and mature.

According to Gallagher Re, 2023 saw re/insurer investment at a record high, with 148 investments in private technology firms, 12% higher than the previous record of 132 investments in 2019.

“2023 [funding], despite being lower, was consistent; it was not volatile at all,” Johnston said.

“At the moment, you’ve got a much more accurate sense of what the market cap is worth for insurtech globally,” said Johnston. “Numbers are down, but they’ve come from a very high peak, which was unsustainable.

“Transaction volume itself didn’t drop anywhere near as much as overall capital invested. What you could ultimately deduce from that is there is still a lot of interest. It’s just that the average check size is smaller, and we have far fewer mega-round deals. I think it’s a very healthy evolution [of the market].”

The key to future success for insurtechs

Johnston also predicted that funding would see a “lift” in 2024 due to several factors, including the improving performances of public insurtech stocks; increased differentiation among insurtech firms by investors; anticipated public offerings and second waves of funding rounds; and growing confidence from industry players, particularly reinsurers, in investing in insurtech.

But what types of insurtechs will successfully find the funding they need in this environment?

“That’s the trillion-dollar question,” said Johnston. “Any company that is genuinely adding long-term value will do well.

“Until recently, some insurtechs were trying to sell the technology as the proposition and that the value is inherently in the technology. But it’s not; it’s the application of that technology and how it can improve or transform traditional commercial success criteria.

“So, I think that the insurtechs that are doing well and will continue to do well are those that understand the pain points in our industry, who are as focused on the ‘what’ as much as the ‘how’.”

Do you agree with Johnston’s views on AI and the global insurtech landscape? Please share your perspective in the comments.

Climate change is expected to have a large impact on global economic losses, with the top two expected to take heavy hits, Swiss Re’s new report has revealed.

In an analysis covering 36 countries, the Swiss Re Institute identified the Philippines and the United States as the nations currently most at risk economically from the intensification of hazards due to climate change.

Top ten countries most exposed to four weather perils

The report, titled “Changing climates: the heat is (still) on,” draws on data from the Intergovernmental Panel on Climate Change (IPCC) and Swiss Re Institute’s own research. It assesses the potential economic impacts if weather-related natural catastrophes become more intense due to climate change.

The findings reveal that the Philippines currently faces the highest economic losses relative to its GDP, at 3%, due to the four major weather perils examined. Meanwhile, the United States, with annual economic losses amounting to US$97 billion (0.38% of GDP), has the highest absolute economic losses worldwide from weather events, alongside a medium likelihood of hazard intensification.

The report also identifies countries with significant insurance protection gaps and those where loss mitigation and adaptation measures are not keeping pace with economic growth as being most financially vulnerable. This is particularly true for fast-growing Asian economies such as Thailand, China, India, and the Philippines, which are deemed most at risk.

Adapting to the changing climate

While flood risks are expected to increase globally, tropical cyclones are identified as the primary cause of major weather-related economic losses in the United States and in east and southeast Asia. In the US, the economic toll from weather events is largely driven by hurricanes, with severe thunderstorms also contributing significantly to the losses.

Jérôme Jean Haegeli, group chief economist at Swiss Re, emphasized the growing severity of weather events as a consequence of climate change, highlighting the urgent need for adaptation measures.

“The insurance industry is ready to play an important role by catalyzing investments in adaptation, directly as a long-term investor and indirectly through underwriting climate-supportive projects and sharing risk knowledge. The more accurately climate change risks are priced, the greater the chances that necessary investments will actually be made,” Haegeli said.

The Swiss Re Institute also underscored the importance of implementing adaptation measures to reduce potential losses. Such measures include enforcing building codes, enhancing flood protection, and avoiding settlement in areas prone to natural hazards.

The report goes on to suggest that the future economic impact of these disasters on each country’s GDP will largely depend on the effectiveness of future adaptation, loss reduction, and prevention strategies.

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Reinsurance giant Munich Re has reported its results for the fiscal year 2023, in line with the new IFRS 9 and IFRS 17 standards starting January 2023.

The company achieved a profit of €4.597 billion, surpassing its revised October target of €4.5 billion, which itself was an increase from the initial forecast of €4.0 billion. The fourth quarter contributed €1.004 billion to the annual profit.

The return on equity (RoE) for Munich Re in 2023 was 15.7%, with earnings per share reaching €33.88. In line with this, the board of management has proposed a dividend of €15 per share, marking a 29.3% increase from the previous year. The solvency ratio, after accounting for the proposed dividend, stood at approximately 267% as of December 31, 2023.

Munich Re 2023 results across segments

Munich Re’s total technical result for the year increased to €7,545 million, with the investment result rising significantly to €5,374 million. However, due to currency losses against the Japanese yen and the US dollar, the currency result dropped to –€292 million.

The operating result saw a decrease to €5,702 million, while the effective tax rate improved to 16.9% due to positive one-time effects. Equity at the end of the year was higher at €29,772 million.

In the reinsurance sector, Munich Re reported a net result of €3,876 million, with insurance revenue climbing to €37,786 million. The life and health reinsurance segment achieved a technical result of €1,433 million, aligning with the adjusted target of €1.4 billion. The net result in this segment increased to €1,428 million. However, insurance revenue saw a slight decrease due to currency effects.

The property-casualty reinsurance segment reported a net result of €2,448 million with insurance revenue rising to €27,061 million. The combined ratio for this segment was 85.2%, with a normalized combined ratio of 86.5%.

Major-loss expenditure for the year was €3,278 million, below the expected value, with the largest individual loss attributed to the earthquake in Turkey, valued at approximately €0.7 billion.

For 2024 reinsurance renewals, Munich Re increased its business volume to €15.7 billion, which the firm attributed to its leverage of expertise and client relationships to tap into attractive business opportunities.

Looking ahead to 2024, Munich Re aims for a net result of €5 billion, with projected insurance revenue totaling €59 billion and an anticipated improvement in the return on investment. The reinsurance segment, meanwhile, has a projected net result of €4.2 billion and an improved combined ratio for property-casualty reinsurance.

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AM Best has revised the long-term issuer credit rating (Long-Term ICR) for A-CAP Group companies following concerns regarding the firm’s management of risks associated with its reinsurance counterparties and its growing dependency on these entities.

The long-term ICR has been adjusted downward to “bbb” from “bbb+,” while the financial strength rating remains steady at B++ (Good). Additionally, AM Best has initiated a review of these ratings with negative implications, signaling potential concerns about the group’s future performance.

AM Best’s review focuses on the adequacy of collateral and the financial stability of its unaffiliated reinsurers in the short term. The group’s strategy of engaging new business with unrated reinsurers has raised questions about its increasing exposure to counterparty risk.

The credit agency pointed out the significant impact of high reinsurance leverage and the deteriorating credit quality of counterparties on A-CAP Group’s capital adequacy. The agency anticipates that A-CAP Group will take steps to mitigate its exposure to reinsurance risk by decreasing its reliance on reinsurance partners.

Despite efforts to secure additional capital to fuel growth, there are concerns that the group may not meet necessary risk-based capital standards if it needs to recapture at-risk business and reintegrate the associated assets on to its balance sheet.

The decision to place A-CAP Group’s ratings under review with negative implications will allow AM Best to assess the group’s 2023 performance, particularly in relation to its ability to manage counterparty risks and enhance capital levels. This evaluation will be based on the group’s statutory financial statements for 2023 and its effectiveness in addressing those concerns.

Despite these challenges, A-CAP Group is expected to report strong operational results, with continued growth in its annuity business as it vies for a larger share of the competitive annuity market. While the group offers some product diversification with life and medical supplement products, its primary focus remains on a range of fixed annuity products.

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Aon’s $13.4 billion NFP deal should see it get a sought-after boost in the attractive middle market. A success story could drive additional consolidation targeting lower-mid and smaller commercial segments, an analyst has told Insurance Business.

“If we see Aon, for example, have phenomenal success with the NFP business and the revenue synergies are enormous, I think that will basically incentivize the other brokers to say, ‘hey, if this is an area where we’re underpenetrated and we can grow quickly, we should pursue that as well’,” Meyer Shields, Keefe, Bruyette & Woods (KBW) managing director said.

“It’ll be interesting to see whether, as we see the huge publicly traded global brokers, if they take a bigger position in [low-mid and] smaller account brokerage then maybe that creates a cycle of additional consolidation, because it’s an area of strength and no-one wants to completely cede that segment of the marketplace to a competitor,” Shields said.

Aon looks to “change the story”

Aon and NFP struck their deal last December, with the transaction expected to close in mid-2024.

The management team at Aon will be “looking to change the story” for the business and scale up following WTW turbulence, during which competitors “picked off” prime talent, Shields said.

Aon’s failed WTW merger – a timeline

• March 2020: Announcement of Aon’s intention to acquire WTW.
• Throughout 2020-2021: Global regulatory reviews by competition watchdogs, including the US Department of Justice (DOJ).
• May 2021: WTW agrees to sell parts of its business to Gallagher to address antitrust concerns.
• June 2021: The DOJ sues to block the merger, citing antitrust issues.
• July 2021: Aon and WTW mutually decide to terminate the merger agreement due to regulatory hurdles.

Aon targets middle-market growth through NFP deal

Top of mind, though, is likely to be NFP’s middle market reach.

“If you look at the history of Aon, a lot of the brokerages that it consolidated were more focused on larger clients today and have a very significant market share there,” Shields said. “Conversely, there’s probably more opportunity for growth, and, broadly speaking, weaker competition in the smaller edge of the middle market clients serving, or insurance brokers serving, clients of that size.”

It was just a “matter of time” before Aon found a US partner in the middle-market space, according to Phil Trem, MarshBerry president – financial advisory.

“NFP’s profile is a very diversified one that has grown both organically and through M&A in the middle market,” Trem said. “What we’re hearing from both is that the intent is for NFP to continue to operate in a similar capacity as it has historically, giving Aon reach into the middle market.”

Marsh McLennan’s MMA could serve as a template for an Aon-owned NFP

Marsh McLennan’s MMA could serve as something of a blueprint for what an NFP under Aon might look like.

“MMA has been allowed to continue to run fairly independently of Marsh and be a middle-market broker that competes with other middle-market brokers,” Trem said. “The benefit to them is that they have the ability to reach up into the broader Marsh family of companies to leverage the tools and resources that they have to be more competitive if they need them.”

Middle-market-focused US firm MMA and Marsh are separate entities but do learn from each other, as recently noted by Marsh McLennan CEO John Doyle.

In a Q4 2023 earnings call, the Marsh McLennan chief exec welcomed “competition” in the middle market space, pointing out that there are still 30,000 independent agents across the US. It is a figure that remains unchanged from when MMA started being built up 12 years ago.

Given focus in recent years on its Aon United strategy, which stresses “working together as one firm,” Aon may yet take a different and more integrated approach with NFP than Marsh McLennan has with MMA.

Aon/NFP – pinning down a price

Whichever way Aon looks at bringing in the business, NFP is a multi-billion-dollar revenue generator set to open under-tapped opportunities for Aon. Factoring this in, Shields and Trem said the $13.4 billion price tag represented good value for both parties.

Subject to close, this is set to represent one the biggest prices paid for an insurance brokerage, though it far trails the $30 billion Aon had intended to fork out for WTW.

Major insurance broker deals

There had been some confusion around the 15x EBITDA figure cited by NFP on announcement of the deal versus the $13.4 billion figure from Aon. The NFP multiple was said to have baked in future earnings into 2025. Assuming that NFP is expected to continue growing in the interim, a multiple based on previous private earnings would then be “most likely bigger” than 15x, Trem said.

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A recent report from Bloomberg Intelligence (BI) suggests that alternative-reinsurance vehicles are poised to remain the dominant source of new capacity in the reinsurance market for 2024, continuing to exert pressure on pricing within the industry.

This trend emerges in a landscape where traditional balance-sheet reinsurance capacity has seen negligible growth, with the notable exception of a capital increase at Everest Re.

In 2023, the issuance of catastrophe bonds surged to an unprecedented $16.4 billion, with anticipated returns maintaining a position above long-term averages. Matthew Palazola, a senior insurance analyst at BI, highlighted that the reinsurance sector might see continued expansion due to the allure of high returns from alternative capital sources, such as catastrophe bonds, insurance-linked securities (ILS), and sidecars.

“Alternative reinsurance capital dates back to the mid-1990s and has risen to about 16% of the market from 10% in 2014,” Palazola said. “Smoother capital-market transactions have made it easier for funding to enter the industry, which has limited price gains after large catastrophes.”

Despite significant price hikes during the 2023-24 period, there was virtually no addition to balance-sheet reinsurance capacity beyond Everest Re’s capital infusion. Historically, robust markets have seen the establishment of new companies, notably in 2001 and 2005.

Catastrophe bonds experienced a strong inflow in 2023, recording over $16 billion in issuances, a stark increase from the $10 billion in 2022 and $14 billion in 2021. The uptick in issuances could continue as enhanced pricing and rising money-market rates, which secure the collateral, amplify yields, offering more attractive expected returns.

This, coupled with insurers’ higher attachment points and retentions, may further fuel interest in cat bonds.

The BI report also notes the potential for increased capital flows into the ILS market due to reduced capacity in traditional reinsurance and higher premium rates. The public issuance of 144a catastrophe bonds reached $16.4 billion in 2023, with investor demand for property/catastrophe exposure soaring post-Hurricane Ian, as evidenced by a 37% price increase globally at the January 1, 2023, renewals according to Howden.

These higher prices, along with money-market returns, offer significant yield enhancements, providing insurers with capital to cover more risks. However, the ILS market’s structure, which permits cedents to extend maturities, may lead to investor caution. Instances of capital being trapped, such as in 2022 following Hurricane Ian, have occurred when cedents secure collateral post-maturity while assessing potential losses.

Palazola pointed out that the expected returns on catastrophe bonds, net of anticipated losses and excluding money-market fund yields, are at their highest since 2012.

“The current catastrophe-bond multiple, as measured by Artemis.bm, is at around 4.54x, 34% higher than 2022’s 3.38x and 144% better than 2017,” he said. “Multiples compressed in the 2010s as capital entered both the ILS and traditional reinsurance market, creating a supply-demand imbalance and dampening pricing across reinsurance products. Coupon rates in 2023 averaged 8.9%, the highest since 2012, and expected losses fell to 1.8%, the lowest since 2014’s 1.6%.”

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Some insurers are strategically increasing their reinsurance operations in Bermuda, either through subsidiaries or independent ventures, according to a recent analysis in Best’s Review.

This move, AM Best explained, is primarily driven by life and annuity insurers looking for capital efficiency and the opportunity to manage risks associated with products like multi-year guaranteed annuities and spread-based offerings more effectively.

Edward Kohlberg, a director at AM Best, noted that “every company has a different reason” for turning to Bermuda, including capital efficiency, regulatory arbitrage, and favorable tax conditions.

“There is a lot of annuity growth to be had and if you can manage that growth in a more efficient manner, then it benefits the company — they can sell more,” he said.

Bermuda’s long-standing appeal to professional insurers seeking capital efficiency through reinsurance was highlighted by the report. This strategy might involve either an affiliated entity or an independent company backed by different investors, facilitating a diversification of the investor base.

AM Best also points out the significant role of private equity and asset management firms in providing capital to new entrants in the annuity and block reinsurance markets, not just in Bermuda but also in the United States and the Cayman Islands.

Data from the industry group LIMRA revealed that annuity sales in the first nine months of 2023 reached $269.6 billion, a 21% increase from the same period in 2022. LIMRA projects that total sales for the year could surpass $350 billion, setting a record.

A trend has emerged where carriers are reinsuring existing business blocks with Bermuda-based companies. A notable instance is the Lincoln Financial Group’s recent arrangement with Fortitude Reinsurance Co Ltd, where Lincoln National Life Insurance Corp reinsured a substantial portion of its universal life and fixed annuity business, amounting to a $28 billion agreement.

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The property and casualty (P&C) insurance and insurtech sectors are poised for significant shifts in 2024, fuelled by technological advancements and evolving global dynamics, according to intelligent solutions provider Duck Creek Technologies’ report.

The report underscored the transformative changes expected across the industry, highlighting the integration of generative AI, cloud platforms, digital innovations, and the expansion of API interactions.

Amidst these advancements, the industry faces the dual challenges of adapting to climate change and evolving consumer expectations. The insurance sector is increasingly becoming a proponent of sustainable and ethical business practices, with a focus on enhancing risk modelling and improving transparency in customer communications.

The global economic landscape, marked by potential recessions and geopolitical uncertainties, prompts insurers to reassess their market strategies and adapt to changing regulatory environments.

Furthermore, the rise of hybrid work models and the emphasis on environmental, social, and governance (ESG) factors necessitate advancements in digital technologies and a recommitment to sustainable practices.

The report delves into the specifics of these trends, including the impact of natural catastrophes on insured losses, the continued hard market conditions, and the evolving landscape of insurtechs, which face both financing challenges and opportunities for innovation.

Insurtech trends

Consolidation through mergers and acquisitions (M&As) is anticipated to reshape the insurtech sector, with a focus on proven technologies and strategic partnerships. Insurance business models are also undergoing significant transformations, with shifts towards embedded insurance, growth in the managing general agent (MGA) market, and expansion of distribution channels.

Operational efficiencies and talent management are central to navigating the current economic conditions and evolving consumer expectations. The industry is leveraging AI and other technologies to streamline operations, enhance customer service, and address talent shortages.

The report also highlighted the increasing role of AI in underwriting and customer service, emphasising the need for robust privacy measures in light of growing cybersecurity concerns. The adoption of generative AI and the integration of digital technologies are key to staying competitive and meeting the changing needs of the marketplace.

Duck Creek Technologies calls on insurers to adapt to a rapidly changing environment, marked by heightened consumer expectations, cybersecurity risks, and the need for modern infrastructure.

QBE Insurance Group is “much more” stable now, according to group chief executive Andrew Horton (pictured), who recently sat down with Insurance Business to talk about what sits at the top of the agenda for the global insurer.

Replicating success

Being an international business has its advantages, including learning from different markets and potentially replicating a division’s success. This is something the company is keen to benefit from, as part of its “bring the enterprise together” strategic priority – QBE has six, the other five being portfolio optimisation, sustainable growth, business modernisation, and the respective focus on its people and culture.

“I’d like to get the cyber business running everywhere across the world,” Horton told Insurance Business. “We have very little of it in Asia and here in Australia and New Zealand, so I’d like to do that. We’re just trying to utilise the skills we have on a combined basis.

“A simple example is getting the financial lines underwriters together and talking about what financial lines underwriting is like in Australia versus the UK, Europe versus the US – historically we haven’t done that well – and they just learn so much from each other because, not surprisingly, they’re seeing similar things. And that can be across financial lines, or property, or casualty.”

For its cyber offering in the US, QBE has rolled out a new technology-driven process. If successful, the plan is to deploy the same automated underwriting assistant for other markets and business lines.

Leveraging tech

QBE, which wants to accelerate its data-centric capabilities, has turned to artificial intelligence in line with the insurer’s modernisation strategy.

“I think it’s a great opportunity for the insurance industry at large because we’re dealing with a lot of unstructured data coming in on both the submissions and claims,” Horton said. “This tool looks like a great tool to be able to do something relatively quickly that humans take quite a long time to do – reading 10s of pages of information and trying to distil what is important for the underwriting and claims decision.

“We’ve just started, and we’ve launched it with our cyber team in the US. It’s looking at all cyber submissions and summarising the key points of a submission. When the underwriter comes in, in the morning, they can look at the various submissions, see what’s actually come in, look at the ones we’ve got most chances of success at, and it just speeds up the whole process.”

Horton noted a 65% improvement speed-wise, with the process spanning from the initial submission to getting the quote out.

“It’s a really good position to be in, and then it’s scalable,” he said. “So, if it works for cyber in the US, there’s no reason why it can’t work for cyber in the UK. And if it works for cyber, why can’t it work for property, liability, and so on.

“We’re really excited about it. I’m sure eventually everyone will have it and it’ll just make insurance companies more efficient, which, in many people’s views, it’s about time that they are. So, I’m looking forward to being more efficient going forward.”

Remediation and stability

As reported last week, QBE’s combined operating ratio (COR) for 2023 stood at 95.2%. Broken down per division, COR in North America (NA) was 103.7%; in Australia Pacific, 93.6%; and for international, 89.5%.

The international division, which includes QBE’s UK and European operations, had a “really good year,” Horton said.

“Almost everything went right for it. It’s been a very stable team over there. So, it just shows [how important it is to have] stability, which we haven’t really had in the US as much and is something we’re focussing on – getting to the same level of stability in the US that we have here in Australia and also with our team running out of London.”

Speaking about the NA operations, Horton told Insurance Business: “North America had a combined ratio close to 104%, and that had quite a large drag from some of our discontinued businesses… Actually, the [NA] businesses, which we break into commercial, specialty, and crop, all had combined ratios under 100% once you take out those discontinued businesses, so they’re definitely improving.

“We have a large crop business, and it was still quite tough in the crop world last year with a number of weather events; mainly drought impacting a number of states. The crop performance was worse than it has been in years gone by, so we continue to focus on that. North America is still a drag for us, and we need to get that down. We’ve said our aim is to get it down to 95% by 2025. We expect it to come into profitability in ‘24 and then march down to the 95% for ‘25.”

For the CEO, who came on board in 2021, what’s crucial is finishing what’s been started in the US in terms of remediating the business.

“We’ve made the business a lot simpler than it was, and it’s having this consistency and continuity,” he said. “We’ve talked about adding cyber expertise in the US, and we’re adding healthcare expertise there and complementary things we can do. So, it’s coming out of a remediation cycle, then into more growth mode, and then ensure we show our broker partners and our clients more consistency than we have done historically.”

Similarly, to some extent, QBE’s business in Asia has undergone some form of remediation.

“Now that work has been done, and we’d like to look at our Asian business as to how we can grow it,” said Horton, who is happy to have internal hire Rob Kosova taking charge of QBE Asia from April.

“I think one of the things [I want to highlight] is the stability of leadership – broader leadership and not just the top 10 people. We’ve got much more stability in the company.”

In 2023, QBE’s net profit after income tax grew from US$587 million to US$1.36 billion. 

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