In its third-quarter performance update for 2023, QBE Insurance Group reported a 7% increase in gross written premium (GWP) compared to the same period in 2022. Over the first nine months, QBE’s GWP growth reached 10%.
Renewal rate increases in Q3 averaged 9.6% for the group, with retention levels remaining favorable, according to QBE.
The quarterly report noted ongoing natural catastrophe activity, including storms, floods, and wildfires in Europe and North America, as well as hurricanes Idalia, Otis, and Hillary. Despite these events, catastrophe claims were in line with QBE’s revised FY23 cost assumption of approximately US$1.3 billion. The net cost of catastrophe claims for the four months to October is expected to be around US$250 million, resulting in total catastrophe costs of about US$950 million for the year to October.
Claims inflation trends have remained consistent with those outlined in QBE’s 1H23 result. While some moderation is evident in certain lines, persistent inflation is noted in specific portfolios, including Australia Pacific personal lines and North America non-core lines and accident & health. This is anticipated to create strain on the current year with modest adverse prior-year development.
Looking ahead, QBE projects a combined operating ratio of approximately 94.5% for the full year.
