QBE UK would consider acquisitions to boost growth

QBE’s UK national business “would not shy away” from acquisitions if they presented themselves, according to the division’s general manager Elliot Miller.

The company has also revealed how it plans to develop its FastFlow electronic trading offering to brokers, including new product launches and connection to SSP.

‘Static’ GWP

Speaking to journalists at the launch of FastFlow’s extranet, Miller said that the 2013 target gross written premium (GWP)for QBE’s UK national division is £420m, but that he expected that to remain “static” over the following 12 months because of competitive market conditions.

He said: “We think the market is running at the bottom at the moment. We want to maintain the good business we have got and we will be very selective about the new business opportunities we go after.

“We will be looking to start picking [GWP] up again but targeting profitable growth rather than a gung-ho approach.”

Acquisitions

However he added that the company will consider acquisitions.

QBE got a boost in the UK when it bought the renewal rights to Lloyd’s insurer Brit’s UK regional business  in 2012. QBE renewed £244m of the Brit premium in the 2012-2013 period, after only expecting to renew around £175m.

Miller said: “If the right acquisition opportunity comes along, as Brit came along, we wouldn’t shy away from it.”

FastFlow future

QBE’s FastFlow portfolio manager Dave Greaves revealed that more products would be added to the electronic trading offering at the end of 2013 and in 2014.

The company already offers office, commercial combined, tradesman’s liability and both stand-alone and combined professional indemnity electronically to brokers on FastFlow.

It plans to add contractors’ combined, which pairs contractors’ liability with property coverage, and mini-bus cover to FastFlow in 2013. It will then add property-owners cover and mini-fleet coverage for up to 15 vehicles in 2014.

The company currently offers its FastFlow e-traded products on its new extranet and through the Acturis broker software system, which supports a network of 350 brokers. It connects to Acturis through the imarket portal.

However, it plans to link up to broker software house SSP in 2014 and is considering others, such as Open GI.

Greaves said: “Once we have connected to SSP we will consider other software houses where we can connect via the imarket portal.

“We will ultimately take our reach to just over 1,000 brokers and that will increase our distribution over and above where we currently are.”

QBE is aiming for FastFlow GWP of £250m, equating to a 4% market share, within five years.