QBE: New distribution strategy to lift premiums 40%

The Brazilian subsidiary of Australia's QBE Insurance Group expects to lift its net earned premiums by 40% to 35mn reais (US$12mn) this year on the back of a new distribution strategy, the local unit said in a statement. QBE Brasil announced it would team up with energy firms, retail chains and finance companies to distribute its insurance policies in a bid to broaden its customer base. The insurer offers a wide range of property & casualty and life insurance policies in Brazil. "This is a very important step for QBE Brasil. It represents a significant gain in scale that will bring us closer to the profitability objectives demanded by our shareholders," QBE Brasil's president Alessandro Jarzynski said. Brazilian insurance broker AON Affinity will handle the administration and brokerage of the new policies, under a partnership signed with QBE. QBE Brasil saw its net earned premiums increase 71% in 2002 and 58% in 2003, respectively. The insurer expects to boost its gross written premiums 35% this year to 55.3mn reais (US$19mn), CFO Helio Sólino told BNamericas. Sólino said that QBE Brasil's growth in both gross written and net earned premiums will be significantly higher than the industry average this year. Last year the Brazilian unit returned to the black with a 587,000 reais (US$201,000) net profit, compared to a 2.4mn real loss in 2002. The improvement last year was mainly due to a 316% jump in transport insurance premiums to 7.2mn reais QBE is one of Australia's largest general insurance and reinsurance groups. In Latin America, it operates insurance companies in several countries, such as Brazil, Argentina and Panama. The company also conducts reinsurance operations in the region.