Profits bonus for QBE
Australian insurer QBE has announced that the depreciation of the Australian dollar will mean profit is 25% higher than 2008 predictions. In the past year, the company has gone on a spending spree in the US and Europe and has bought three US underwriting agencies. But as A$1 is now worth 70 US cents and 40p, the group’s 2009 gross written premium and net earned premium targets have been pushed up 25%, the company announced. With about 80% of QBE’s premium income in currencies other than the Australian dollar, the depreciation of the Australian dollar, particularly against the US dollar and sterling, has had a significant positive impact on QBE’s revenue. It said its 2008 targets, announced in August, were now upgraded to gross written premium growth of 7.5% to A$13.3bn (£5.5bn) and net earned premium growth of 10% to A$11.bn.
Aviva sells RAC company
Aviva is selling RAC Auto Windscreens to Arques Industries. The gross assets of the business, a supplier of auto glass repair and replacement services, were £40m at 30 September 2008. Aviva acquired the company, which operates about 100 fitting centres and 700 mobile units, as part of the purchase of RAC in 2005. Clients include insurers, insurance brokers and fleets.