In Q1 of 2024, QBE reported a GWP of $7.8 billion, marking a 2% increase compared to the $7.6 billion recorded in the corresponding quarter of 2023.
QBE is forecasting a combined operating ratio of approximately 93.5% for the full year.
Additionally, the group boasted robust investment returns for the quarter, attributing this success to favorable returns in the risk asset portfolio and favorable interest rates. QBE reported a total investment income of $406 million for Q1.
The insurer released a statement, saying: “Group-wide renewal rate increases of 7.3% were in line with expectations, and reflected reduced rate increases across certain property and reinsurance lines compared to the prior corresponding period.
“Excluding rate increases, premiums declined by 2% in constant currency due to lower Crop premium, and property portfolio exits in North America and Australia. Excluding Crop, group gross written premium and ex-rate growth was 9% and 3%, respectively.
“In Crop, organic growth is expected to partially offset the impact of lower commodity prices, and QBE currently estimates that Crop gross written premium will be ~$3.9B in FY24.
“In the four months to April 2024, the net cost of catastrophe claims is ~$300 million, which compares to QBE’s catastrophe allowance for 1H24 of $609 million. Catastrophe costs were underscored by a number of storm events, predominantly in Australia and North America,” QBE said.
Commenting on the report, chief executive Andrew Horton said: “In summary, we’ve had a good start to the year. Markets remain supportive, with continued momentum in gross written premium, while underwriting performance is tracking to plan.”
Horton, whose team recently welcomed former Direct Line Group chief executive Penny James as an independent non-executive director on January 1, expressed satisfaction, stating, “In all we’re making good progress against both our financial plan for the year, and our strategic agenda.”
Meanwhile, alongside its quarterly performance report, QBE also provided an update on the insurer’s claims figures for the first four months.
