QBE Insurance Group’s results are “less volatile” after action to lift underwriting performance, Fitch Ratings says.

The insurer financial strength rating of QBE’s core subsidiaries has been raised to very strong (AA-) from strong (A+), and its long-term issuer default rating has moved to A from A- in Fitch’s latest assessment of the group.

“The upgrades reflect the non-life group’s sustained improvement in financial performance,” the ratings agency said. “We believe the group’s performance has become less volatile.”

Fitch says QBE’s underwriting performance has strengthened significantly in the past three years, driven by premium rate increases and moves to reduce earnings volatility.

“We believe ongoing robust operational performance will continue to underpin QBE’s financial flexibility.”

QBE says the credit rating changes, including an S&P upgrade last month, “represent an important milestone in our broader efforts to improve the quality and resilience of our business”.