QBE announces streamlining of operations

Insurance giant QBE has announced plans to streamline its operations in the New Year, as it pushes ahead with cost-cutting efficiency measures.

In a statement released to the Australian Securities Exchange yesterday, QBE confirmed its Asia-Pacific operations will no longer be a standalone division, as of January 01, 2019.

Instead, the insurer’s European and Asian operations will be grouped together under an international umbrella while its newly-created Australian Pacific operations will be comprised of Australia, New Zealand, the Pacific and India.

“Today’s announcement represents the next step in creating a stronger, simpler QBE,” said CEO Pat Regan. “These changes enable QBE to enhance our customer proposition and build a stronger platform for long term, sustainable and profitable growth.”

A senior level reshuffle is also on the cards with former Asia-Pacific CEO Jason Brown stepping into the newly-created role of group chief underwriting officer. The role will see Brown charged with underwriting, pricing and reinsurance placement.

Europe CEO Richard Pryce is set to become CEO of QBE’s international operations while currently ANZ CEO Vivek Bhatia will become CEO of Australia Pacific.

“Asia-Pacific and European operations are already collaborating in relation to underwriting opportunities and we can expect to see further benefits from leveraging our underwriting expertise, scale and global capabilities across these business divisions,” said Regan.

“Aligning Asia with European operations and the Pacific with Australian and New Zealand operations will ensure we are best placed to support our customers and partners in those regions,” he added.

A spokesperson for the group also assured brokers that they would not, in any way, be adversely affected by the restructuring.

“Brokers in both Australia and New Zealand have responded positively to today’s announcement,” the spokesperson told Insurance Business.