QBE to close North America middle-market segment

Following an extensive strategic review, QBE has determined it will commence an orderly closure of its North America middle-market segment. The segment represented gross written premium of ~$500 million in FY23, and has experienced performance challenges over several years.

The closure of middle-market will serve to refocus North America’s strategy on those businesses which hold more meaningful market position, relevance and scale. The closure will have no incremental impact on appetite or strategy for North America’s three core businesses, Specialty, Crop and Commercial.

QBE will begin non-renewing middle-market policies in accordance with applicable state regulations, with gross written premium expected to begin reducing in FY24, before falling more substantially in FY25. A restructuring charge of ~$100 million before tax will be recorded in the FY24 result to account for costs associated with the business closure.

The closure is expected to have limited impact on QBE’s FY24 Group combined operating ratio, and further information will be provided at QBE’s 1H24 result on 9 August, 2024.