QBE discloses Ukraine exposure, completes E&S runoff deal
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Australian insurer QBE Insurance Group Ltd. said Thursday that it expects about $75 million in claims from the war in Ukraine, largely from political violence, political risk and aviation insurance losses.
In a business update filed with the Australian Stock Exchange, the insurer also disclosed that it had agreed to transfer liabilities for a troubled North American excess and surplus book, which is in runoff.
The transaction covers primary and excess general liability policies underwritten between 2016 and 2020. Bermuda-based runoff specialist Catalina General Insurance Ltd. will assume losses prior to Dec. 31, 2021, and reserves of $334 million related to the business. The deal is expected to adversely affect QBE’s 2022 underwriting result by about $50 million.
In its 2021 annual report, QBE reported $148 million in adverse development related to the runoff book.
In its market update, QBE also reported $6.9 billion in gross written premium for the first quarter, a 19% increase over the same period last year. Average renewal rates increased 7.9%, the filing stated.
