QBE announces the North American middle-market strategic review outcome with the 1H24 performance.

QBE Insurance Group (ASX: QBE) has announced the outcome of its strategic review of the North America middle-market segment. Despite the performance challenges faced over several years, QBE has decided to initiate an orderly closure of this segment. This strategic shift will allow QBE to concentrate on businesses that hold a more significant market position, relevance, and scale, while maintaining the continuity of North America’s three core businesses: Specialty, Crop, and Commercial, which will remain unaffected by this closure.

QBE will begin non-renewing middle-market policies by state regulations, resulting in a reduced gross written premium in FY24 and a more substantial decrease in FY25. A restructuring charge of approximately $100 million before tax will be recorded in the FY24 result to cover the costs associated with the closure. The closure is not expected to impact QBE’s FY24 Group combined operating ratio significantly. Additionally, QBE updated its 1H24 performance, including expected gross written premium growth, catastrophe costs, prior year development, and investment results.

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