QBE Insurance Group nicknamed, “Query By Example” is the largest insurance company in Australia. The name was derived when three insurance companies (Queensland insurance, Bankers’ and Traders’ insurance company and Equitable life and general insurance company) were merged together. QBE is the first letter of each of these companies.
In August 2020, QBE Insurance Group will officially release her first-half financial results. The forecast so far from this Sydney-based insurance company shows that they are rocking a statutory loss after tax of approximately $750 million USD.
This is largely due to the negative impact of the coronavirus pandemic on the insurance industry in Australia, catastrophe experience, prior accident year claims development and net investment loss of $125 million USD as a result of extreme investment market volatility.
In a press statement issued by QBE Insurance Group Chief Executive, Pat Regan, he said the following:
“While the landscape remains highly uncertain, at this stage QBE currently estimates total COVID-19 related costs to be around US$600 million pre-tax,” stated the insurance group.
“This includes ~US$265 million of potential further net claims that could emerge over the next 12-18 months, primarily in trade credit and LMI (lenders’ mortgage insurance), but also in casualty (including directors’ & officers’), A&H (accident & health), landlords’ insurance, and other classes.”
While the Group Chief Executive of QBE Insurance Group remains optimistic, he went further to enumerate some of the effective support measures their company has taken to respond to the health and economic crisis on policyholders in Australians.
Pat Regan, added that, “Despite the impact of COVID-19, I am encouraged by the strong underlying trends evident in the result. Notwithstanding significant uncertainty surrounding the enduring impact of the COVID-19 pandemic, our greatly strengthened capital base positions us well to capitalise on accelerating pricing momentum and emerging organic growth opportunities.
“The safety and well-being of customers and our people remains a key priority, and this is especially so during these unprecedented times. We are supporting customers through various initiatives including premium refunds, premium deferrals, extending credit and counselling services to vulnerable customers, and accelerating claims payments.”