QBE warns of $100m catastrophe blowout

November 21, 2022 01:16 PM AEDT | By AAPNEWS
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QBE expects to blow out its catastrophe allowance by around $100 million as extreme weather and the war in Ukraine result in elevated claims.

The insurer said on Monday that elevated catastrophe claims had continued in the second half, costing it $430 million in the four months to October, or $880 million in the year to date.

QBE expects a net catastrophe cost of $1.06 billion in 2022, exceeding its allowance of $962 million.

That includes $75 million in costs associated with the Ukraine war, which QBE is exposed to through policies against political risk and political violence as well as aviation coverage.

Other catastrophe claims have come from widespread flooding and storms across Australia's east coast as well as from Storm Eunice in the UK and Europe.

Overall global catastrophe costs are expected to again cost the industry over $US100 billion, QBE said.

QBE said that gross written premiums were up six per cent in the September quarter, to $15.94 billion.

Claims inflation was continuing, and QBE was prepared for a prolonged inflationary environment despite aggressive central bank action to tame it.

But residual risk from COVID business interruption claims had reduced following recent court cases, QBE said.

At 1.47pm AEDT, QBE shares were down 0.7 per cent to $12.30.


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