Elevated catastrophe costs put pressure on QBE’s earnings: Fitch Ratings

The recently completed transaction reinsured $1.9b of long-tail reserves reduced risk volatility. 

The underwriting performance of QBE, which has been volatile in the past five years, showed improvement in 2022 and the first half of 2023 (1H23), with a statutory combined ratio of 86% in 2022. 

Despite high catastrophe costs affecting North America and Australia Pacific businesses in 1H23, a recently completed reserve transaction reinsured $1.9b of long-tail reserves, reducing reserve risk volatility. 

ALSO READ: QBE Insurance selects Peter Burton as chief underwriting officer

The group's net profit for 1H23 rose to $404m, supported by a stronger investment result, with total investment income reaching $662m. 

Fitch assesses QBE's company profile as 'Favourable' due to its large operating scale and diversified international operations.