Standard & Poor's (S&P) has affirmed the A+ long-term counterparty credit and insurer financial strength ratings for Dublin-based QBE Reinsurance Europe, following a review.
At the same time the A+ rating on QBE Re Europe's guaranteed affiliates were also affirmed.
The outlook on all the ratings remained stable, said S&P.
It said the ratings were based on QBE Re Europe's importance to the QBE group and a support agreement provided to QBE Re Europe by QBE Insurance (International).
The ratings for the group's other rated European operating company, QBE International Insurance Ltd, continued to reflect its core status due to its strategic alignment with the group and its position as the group's largest European operating entity outside Lloyd's, said S&P.
It said it considered QBE Re Europe to be a strategically important, but not core, member of the QBE group.
Nevertheless, the ratings on QBE Re Europe were equalised at the level of the group's core operating subsidiaries due to the explicit support that QBE Insurance (International) Ltd provided to QBE Re Europe in the form of a subordinated guarantee, added S&P.
“QBE Re Europe's strategic importance is underpinned by the role it plays as guarantor for many of the group's international subsidiaries,” said S&P credit analyst Peter Grant.
“However, QBE Re Europe's marginal historical operating performance and its modest competitive position currently preclude it from attaining core status under Standard & Poor's group ratings criteria.”
”The stable outlook on QBE Re Europe is driven by the stable outlook on the QBE group, which is underpinned by Standard & Poor's expectation that the group's strong operating profitability and adequate capitalisation will be maintained,” added Grant.
