QBE shares rise on Q3 premiums growth
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More news: QBE shares were trading higher on the ASX after the insurance group reported a growth in third-quarter gross written premiums and investment income.
QBE shares were up 1.3% to $19.60 by 11:35am AEDT. Its share price has risen more than 30% since the turn of the year.
QBE posts Q3 premiums growth, reaffirms FY guidance
The news: Insurance giant QBE has reaffirmed its full-year guidance after growth in gross written premiums and higher investment income in the third quarter.
The numbers: The insurer said gross written premiums for the nine months to September 2024 are up 2% from a year ago, largely on the back of rate increases. Excluding rate increases, growth was down 2% due to the impact of non‑core portfolio exits. Group-wide premium rate increases were 4.9% in the third quarter.
It reiterated guidance for full-year premium growth of around 3% on constant currency basis, and a FY24 group combined operating ratio of around 93.5%.
The context: QBE said the lower premium performance reflected a $600 million hit in North America, after the company earlier this year announced its exit from the non-core middle-market segment that has experienced performance challenges over several years.
QBE, which operates in 27 countries, said its group catastrophe costs in the second half is tracking broadly in line with expectations. Net cost of catastrophe claims in the four months to October was at $425 million, relative to the 2H24 catastrophe allowance of $671 million.
Full-year industry losses are expected to be $100 billion, following an active hurricane season in North America.
Investment returns were up 4.4% in the third quarter underpinned by excellent results in both fixed income and risk asset portfolios, it said.
The source: ASX announcement
