By Alice Uribe
SYDNEY--QBE Insurance Group Ltd. said it could take a US$75 million from its exposure to the Ukraine war.
QBE said it had exposure across several lines, including political violence, political risk and aviation, as it manages a rising number of natural catastrophe events.
The general insurer on Thursday updated on its performance in the first quarter of FY 2022, outlining 19% growth in gross written premium compared with the same period last year and average increases in group-wide renewal rates of 7.9% for the quarter.
While acknowledging the war in Ukraine remained fluid, QBE estimated the potential net impact to be around US$75 million, and that the ultimate impact from the conflict will be reported in catastrophe costs.
At the same time, QBE said it had experienced an elevated rate of catastrophes in the first quarter, including widespread flooding and storms across the east coast of Australia and Storm Eunice in the UK and Europe.
"Natural catastrophe claims for the quarter were however in line with the 1Q FY 2022 allowance," said QBE.
Chief Executive Andrew Horton said that even as the insurer grappled with a number of natural catastrophes and significant geopolitical events, positive momentum experienced through the 2021 fiscal year had continued into the first quarter.
"Based on our current view, in fiscal 2022 we continue to expect a group combined operating ratio that demonstrates improvement on the fiscal 2021 exit combined operating ratio of around 94%," he said.
Write to Alice Uribe at email@example.com
(END) Dow Jones Newswires