Australian insurer QBE continued to report growth in gross written premium in Q1 2024, up 2% on the prior corresponding period on both a reported and constant currency basis.
The firm has also disclosed that group-wide, there were renewal rate increases of 7.3% in Q1 2024, in line with expectations and reflecting reduced rate increases across certain property and reinsurance lines compared to Q1 2023.
Excluding rate increases, QBE revealed that premiums declined by 2% in constant currency due to lower Crop premium alongside property portfolio exits in North America and Australia.
Excluding Crop, the firm’s gross written premium and ex-rate growth were reportedly 9% and 3%, respectively.
Elsewhere in its opening quarter results, QBE revealed that in the four months to April 2024, the net cost of catastrophe claims is ~$300 million, which compares to its catastrophe allowance for H1 2024 of $609 million.
As per QBE, catastrophe costs were underscored by several storm events, predominantly in Australia and North America.
Additionally, a “modest level” of catastrophe prior year development was recorded in Q1 2024, principally related to European events which occurred in 2023, including the Italian hail event in Q3 of 2023.
Strong investment returns were also achieved in the opening quarter, and thus, QBE has confirmed its full year outlook, continuing to expect constant currency gross written premium growth in the mid-single digits, and a combined operating ratio of ~93. 5%.
