QBE has completed the sale of its global trade credit and surety operations to Swiss Re’s commercial insurance arm.

It says the divestment supports its focus on optimising its portfolio, enabling the reallocation of capital and resources towards growth opportunities aligning with its long-term strategy.

“QBE and Swiss Re Corporate Solutions have worked together to ensure a smooth transition for QBE employees, customers and brokers,” QBE said today.

The sale of the unit – which has a strong presence in Australia, New Zealand and the UK and is expected to generate annual revenue of about $US200 million ($279 million) – was announced in February.

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

Ivan Gonzalez, CEO of Swiss Re Corporate Solutions, said in February the acquisition was an important milestone, allowing the business to expand in the area with a well-managed, profitable portfolio and a highly experienced team.

“We are excited to build on QBE’s market-leading capabilities as we continue to differentiate our offering to help corporate clients navigate the evolving risk landscape,” he said.

Swiss Re Corporate Solutions says the market segment generates about $US19 billion ($26.5 billion) a year in premium worldwide, with growth potential driven by economic uncertainty, more complex supply chains and rising demand for sophisticated risk transfer solutions.

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