QBE has sacked its Australia and New Zealand CEO following the company's half-year results, published on August 17.
The result shows a profit of $265 million for the six months ending June 30, falling from $455 million in the corresponding period last year.
The changes are part of a "remediation" plan for the $14 billion global insurance giant's Australian and New Zealand division unveiled as local boss, Tim Plant, left the business after just one year in the job.
Sydney Morning Herald reported that under Plant's watch, insurance margins in the regional business fell from 14.8 per cent in the first half of 2015 to 8.9 per cent in the first half of 2016.
QBE Insurance Group chief executive, John Neal, said the company was taking "decisive action" to "remediate" the local business.
"While the interim result is broadly in line with our expectations, QBE’s business is not immune to macro conditions that are challenging the returns of all insurance companies," the report said.
"This is particularly evident in our Australian and New Zealand operations, where cumulative pricing declines concurrent with heightened claims inflation have detracted from performance in several of our short-tail classes, exacerbated by the well-publicised deterioration in the NSW compulsory third party scheme.
"We are responding decisively with price increases, revised terms and conditions and other portfolio adjustments and remain confident that these actions will benefit the claims ratio in 2017."