The insurer stated: “Having reported a 1H20 adjusted net cash loss after tax of US$666 million, QBE now expects to report a FY20 adjusted net cash loss after tax of about $780 million. This includes the following pre-tax impacts: $470 million of Covid-19 costs, $130 million of elevated catastrophe costs, and $360 million of prior accident year claims development.
“The expected statutory net loss after tax of $1.5 billion also includes a $520 million non-cash writedown of North America goodwill and deferred tax assets, and $100 million of IT and real estate-related writedowns.”
The company will be releasing the final numbers on 19 February 2021.
Focusing on favourable market conditions
Moving into the New Year, interim Group Chief Executive Richard Pryce said his focus will remain on ensuring that QBE takes full advantage of favourable market conditions. This, he said, includes driving targeted growth in portfolios and regions that offer the most profitable new business opportunities for the group.
“While I am very disappointed with the headline statutory loss,” Pryce said, “I am increasingly confident about the pricing cycle, particularly in the northern hemisphere, and the outlook for the underlying business. Premium rate momentum accelerated in North America and international during 3Q20 and the FY20 attritional claims ratio is expected to improve further from 45.5 per cent reported in 1H20.”