QBE has agreed to sell its global trade credit and surety business to Swiss Re Corporate Solutions.

The unit has a strong presence in Australia, New Zealand and the UK and is expected to generate annual revenue of about $US200 million ($283 million). 

“While this business has performed well over an extended period, underpinned by an excellent team, we recognise its leverage to macroeconomic settings,” QBE CFO Chris Killourhy said today. 

“The exit will allow us to recycle capital into our core focus areas, where we see a greater opportunity for long-term growth.” 

Swiss Re Corporate Solutions says the deal aligns with its strategic ambition to diversify its portfolio and capture new growth opportunities. 

“It allows us to expand our offering in this attractive segment by strengthening our global credit and surety platform with a well-managed, profitable portfolio and a highly experienced team,” CEO Ivan Gonzalez said. 

Swiss Re Corporate solutions says the specialty line plays a critical role helping companies manage payment and performance risk arising from their accounts receivable. 

Globally, the market segment generates about $US19 billion ($26.93 billion) in annual premium, and growth may be driven by heightened economic uncertainty, more complex supply chains and rising demand for sophisticated risk transfer solutions.  

The deal, announced today alongside QBE’s annual results, is expected to close later this year, subject to regulatory approvals. 

Corporate Solutions is the commercial insurance arm of the Swiss Re Group. 

QBE says full-year profit was up 21% to $US2.157 billion ($3.053 billion). Gross written premium increased to $US23.959 billion ($33.913 billion), representing gains of 7% on a reported basis and 8% excluding exited portfolios.

More details on QBE's results in our Daily update this afternoon.