QBE keeps catastrophe costs in check in Q3

The news: Home and motor insurance giant QBE has revealed steady growth in premiums (7%) during its third quarter and reiterated its full-year outlook of gross written premium growth of about 10%.

Full-year catastrophe claims costs are tracking well against its forecast. This is despite storm, flood and fires prompting more claims for the European and North American businesses in recent months.

The numbers: QBE said it continues to expect full-year gross written premium growth of about 10%. Catastrophe costs were $US950 million for the year to October. QBE said this was favourable compared with its most recent full-year assumption of $US1.3 billion.

The context: QBE is enjoying a supportive environment for premiums and said this should continue in 2024. The insurer flagged that inflation was affecting some of its product groups including in Australia and North America. The North America crop business is likely to post weaker full-year earnings due to lower commodity prices. However these impacts should be offset by lower catastrophe costs in the second half of the financial year.