Australia-based QBE Insurance Group has reportedly integrated two of its smallest but fastest growing divisions, Asia Pacific and Latin America, into one division after a review of the company structure.
QBE Insurance Group global chief executive was quoted by smh.com.au as saying that the company’s Asia Pacific CEO, David Fried, has been named as the new chief executive of the emerging markets division. He will assume his new responsibility on 15 August 2014.
The company’s Latin American head, Jose Sojo, will step down QBE at the end of 2014 to ensure a "thorough handover" to Fried, Neal told the publication.
The insurer noted that the restructure will enable to boost the operational efficiency as well as help to pursue organic and inorganic growth in the regions.
An internal company email of Neal obtained by Fairfax Media, was cited by smh.com.au as saying: "I appreciate that change may bring with it some uncertainty, but I would like to assure you all that the board and the group executive committee believe that this change is one that will be to the ultimate benefit of our people, our customers, our shareholders and the communities in which we operate."
In 2013, QBE’s Latin America operations contributed $1.38bn and $730m to the company’s $18bn in gross written premium, or revenue. The Latin American arm registered a 13% growth and Asia Pacific posted 26% premium growth last year.
By merging the two divisions, QBE could emerge with a larger division that would post a return on equity of around 10% to 15%, which is in line with the group’s overall targets, the publication reported.
Neal quoted from QBE’s annual report that Asia Pacific boasted a "$27 billion addressable market in which we are aiming to be a major player by 2016."
"In Latin America, we have equally exciting opportunities across each of the seven countries in which we operate as the markets begin to mature and show signs of increased opportunity for QBE.."
Image: QBE mergers Asia Pacific and Latin America units to boost operational efficiency.Photo: courtesy of adamr/FreeDigitalPhotos.net.