QBE Insurance Shares Slip Despite Strong Year-to-Date Gains in Q3 2024

2 min read | November 27, 2024 01:37 PM AEDT | By Team Kalkine Media

QBE Insurance Shares Slip Despite Strong Year-to-Date Gains in Q3 2024 — Image source: shutterstock

Q3 2024 Performance Insights

Steady Premium Growth Amid Challenges
QBE reported a 2% increase in Gross Written Premiums (GWP) year-on-year for the nine months ending September 30, consistent across reported and constant currency terms. The growth was driven by group-wide renewal premium rate increases of 5.9%, although these slowed to 4.9% in the third quarter.

Catastrophe Claims Mount
The quarter was heavily impacted by storm activity in North America, particularly hurricanes and secondary perils. Management highlighted industry-wide insured losses exceeding $100 billion for 2024. QBE reported net catastrophe claim costs of $425 million for the four months to October, against a second-half allowance of $671 million.

Crop Insurance Moderates Expectations
In North American crop insurance, QBE expects a full-year combined operating ratio of 94%, reflecting slightly weaker-than-expected yields offset by lower commodity prices.

Investment Gains Shine
On a positive note, QBE achieved strong investment results in fixed income and risk asset portfolios. Funds under management (FUM) grew to $33.4 billion, up from $30.5 billion at the end of the first half.

Outlook and Investor Takeaways

QBE reaffirmed its full-year guidance, projecting:

3% GWP growth at constant currency, factoring in a $600 million impact from exited portfolios.
A 93.5% combined operating ratio, assuming catastrophe claims remain within the second-half allowance.

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