QBE Insurance : Signals $1.5 Billion Annual Loss

By Alice Uribe

SYDNEY--QBE Insurance Group Ltd. expects to report a statutory net loss of US$1.5 billion in the 2020 fiscal year, but says its balance sheet remains strong and sufficient to fund growth plans.

The general insurer on Friday said that it was also guiding for a US$780 million adjusted net cash loss for fiscal 2020. This forecast includes US$470 million of Covid-19 costs, US$130 million of elevated catastrophe costs and US$360 million of prior accident year claims development.

Still, annual net investment income is expected to be A$140 million, which QBE says is a material turnaround from a loss of A$90 million in its fiscal first half.

"While I am very disappointed with the headline statutory loss, I am increasingly confident about the pricing cycle, particularly in the northern hemisphere, and the outlook for the underlying business," Interim Chief Executive Richard Pryce said.

Write to Alice Uribe at [e-mail]

(END) Dow Jones Newswires

12-17-20 1659ET