QBE sets sights on $5bn PCM target
QBE Europe's property, casualty and motor division has set its sights on becoming a $5bn (£3.03bn) business by the end of 2015. Ash Bathia, PCM chief underwriting officer, said the business is growing from its current premium level of $2.7bn, while still making "the requisite profit and hitting the group target on profit".
This comes six months after QBE revealed it had restructured its European business into three underwriting divisions: PCM; reinsurance, which includes trade credit; and marine, energy and aviation. Mr Bathia told Post: "We have a $2.7bn business and ordinarily we would be very happy to stop with that but actually the global non-life business is worth $1.3tn. If we get to $5bn, that represents 0.4% of the global non-life market and I think we can achieve that."
He explained that growth within its UK regional operation, which is now worth £250m, will "play a big role" in QBE hitting its target.
Mr Bathia added that, following a recent a gap analysis to identify potential opportunities for growth, the business is boosting its business support, including risk management and operations, as well as technical support. It also aims to develop new product lines. So far, this has included last month's launch of a multinational product targeting companies with turnovers up to £1bn, which now offers coverage and claims handling in more than 100 countries.
"One new growth area has been the launch of QBE's multinational product, which offers solutions to UK companies looking to expand internationally," he said. "Because of the recession, a lot of companies are meaner and keener and better placed to grow. Some companies are looking beyond our shores to diversify and hence for we have come up with a product that supports this. If a smaller enterprise wants to diversify into somewhere such as China or Taiwan we can offer them a product that supports that.
"From a multinational perspective, we have a lot of prospective customers in the pipeline and the next eight months is all about taking this out to the market. Over the next few months there will be more new offerings."
He added part of QBE's long-term plan in the UK could see it opening new offices with the M25 corridor and Cardiff as potential locations.
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