QBE REPORTS PACIFIC ASIA RESULTS

Australia-based insurer QBE today reported a “solid underwriting result” for 2006 from its Asia operations, which form part of QBE’s Pacific Asia Central Europe (PACE) division. The company said that profits were achieved in Hong Kong, Macau, the Pacific Islands and Singapore, while small underwriting losses were recorded in the Philippines and Vietnam. The combined operating ratio for PACE as a whole rose to 84.4% from 82.3% in 2005. Gross written premiums for the division rose 5% to A$727m. The company said that premium growth was affected by a softening of the market and by increased competition. QBE said that one of its key objectives in 2007 was to complete at least one acquisition in the Asia-Pacific region. QBE predicted a strong result for 2006, but accepted that softening rates and increased competition in the sector would probably imply a higher combined operating ratio. QBE said that the Indian non-life market presented “an exciting opportunity”, with reported growth in excess of 20% a year. QBE said that its acquisition last year of regulatory approval to establish a liaison office was seen as “a major step forward for QBE in India”.