QBE Insurance Group’s credit ratings have been confirmed at bbb+ by AM Best.

Its balance sheet and operating performance are both strong, with a favourable business profile and appropriate risk management, the ratings agency says.

Capitalisation remains strong despite recent catastrophe losses, poor experience on emerging market portfolios and a one-off writedown of a deferred tax asset.

A reduction in claims reserves due to catastrophe writedowns and the sale of the Latin American business should further improve capitalisation, AM Best says.