QBE takes hit from North American business
Listed insurance group QBE will report an expected loss of $US250 million for the year to December due to claims provisioning, intangibles and goodwill write downs in its North America business.
In a statement released to the Australian Securities Exchanges (ASX), QBE stated it would also replace its group chair next year when US-based QBE Marty Becker will succeed Belinda Hutchinson from March 2014. Hutchinson will retire from the board after having been appointed chair in July 2010.
QBE stated the losses were the result of a restructure within its "specialised lender-placed property insurer", QBE Financial Partner Services, higher than expected claims increases and goodwill impairment charges within the North American market.
QBE chief executive John Neal said the insurer had set up a new executive team which had reviewed the North American business.
Neal said these decisions should lead to a return to profit in 2014 and QBE was "emphatically dealing with the North American issues that have been detrimental to confidence and underwriting performance over recent reporting periods".
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