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16 December 2024News

QBE Re subsidiaries get Class 4 licences

Two of QBE’s Bermuda subsidiaries have been granted Class 4 insurer licences which enable them to underwrite third party business. 

 QBE Blue Ocean Re has had its name changed to QBE Capital and Equator Reinsurances  has been renamed QBE Capital (Global) and were granted the licences by the Bermuda Monetary Authority earlier this month, according to a LinkedIn post by QBE chief financial officer Inder Singh. 

He said the two Bermuda-based captive reinsurers had also received A ratings from AM Best, in addition to S&P ratings A+. 

“Following the licence reclassifications, these entities are now authorised to underwrite third-party business,” Singh said. “This evolved proposition will improve QBE’s access to markets and bolster our efforts around our strategic priorities of growth and portfolio optimisation. 

“As part of our commitment to the Bermudian reinsurance market it is a natural evolution for QBE Re to underwrite directly onto these locally based balance sheets. 

“We are very excited about this new chapter and look forward to the enhanced capabilities it will bring to our brokers and customers.”

AM Best said the ratings emphasised QBE Capital Global and QBE Capital’s role and strategic importance to the QBE group, being the key entities providing reinsurance protection to its operating companies. 

“QBE’s groupwide external reinsurance programme is centralised in the companies,” AM Best said. “Both companies benefit from implicit and explicit support from the QBE group, including contingent capital and letter of credit facilities.”

AM Best said the outlook for both companies is stable. 

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