QBE lowers insurance margin expectations
QBE Insurance Group Limited (QBE) expects its half-year insurance profit margin to be at the lower end of its targeted range of 16% to 18%. In an investor update in London last night, the insurer said full year targeted investment yield on policyholders’ funds would be slightly higher than 3% guidance.
The company said 2010 is likely to be a tough year for the insurance market, however added that there were some encouraging signs that the company is at the bottom of the cycle for most classes with an upturn expected by the end of 2011.
Meanwhile, QBE estimated large risk and catastrophe claims would be of $555 million up until the end of May.
The company said this includes $108 million for the Perth storms, $91 million for the Chilean earthquake, $76 million for the storms in Melbourne and finally $29 million for the Deepwater Horizon oil disaster in the Gulf of Mexico.
In the previous corresponding period the catastrophe insurance bills totalled $458 million.
QBE said this year’s catastrophe insurance bill was within allowance of $1.1 billion.
As at 1020 AEST, QBE shares were down 13c to $18.82.
Leave a Reply