Rate increases boosted modest premium growth in the first quarter for QBE Insurance Group Ltd., as the international underwriter noted catastrophe losses in line with its allowance.
Gross written premiums rose to $7.8 billion from $7.6 billion a year ago, the group said in a statement. GWP fell 11% in North American and rose 17% in the international segment.
Renewal rates rose 7.3%, in line with expectations, reflecting lower rate increases in certain property and reinsurance lines, QBE said. Excluding rate increases, premiums fell 2% in constant currency due to lower crop premiums and property portfolio exits in North America and Australia.
In the crop line, organic growth is expected to partly offset the impact of lower commodity prices. QBE estimates crop GWP will be about $3.9 billion in 2024.
QBE said claims developed along assumptions for 2024. In the four months to April 2024, the net cost of catastrophe claims is about $300 million, compared with QBE’s catastrophe allowance of $609 million for the first half of 2024.
Catastrophe costs included a number of storm events, mainly in Australia and North America.
A modest amount of catastrophe prior-year development was recorded in the first quarter, mainly for 2023 events in Europe, including a third-quarter hail event in Italy.
QBE said it saw strong investment returns in the quarter, helped by supportive interest rates and favorable returns in the risk asset portfolio. Higher risk-free rates resulted in an unrealized loss on core fixed income securities of $130 million, offset by a claims liability discount benefit that resulted in a neutral impact from asset-liability management activities for the quarter.
QBE said its 2024 outlook includes constant currency GWP growth in the mid-single digits with premium rate increases expected to remain supportive. The 2024 combined operating ratio is expected to be about 93.5.
The group will release its first-half result on Aug. 9.