Australia's QBE warns H1 results could disappoint

(Reuters) — QBE Insurance Group, Australia's biggest insurer by premium income, on Tuesday warned that its first-half results would likely fall short of analysts' forecasts, hit by higher-than-expected claims.

QBE said it expected insurance profit margin at 7% to 8% compared with consensus expectations of about 10%. Operating ratio — operating expenses as a percentage of revenue — would likely be 96% to 97% against consensus expectations of around 93%.

Net profit after tax would be AU$390 million ($366.4 million), it added. That compares with a consensus forecast of AU$571.8 million ($537.3 million), according to Thomson Reuters Starmine data.

The announcement sent QBE shares plunging 12.11% to AU$10.45 ($9.82) in early trades, compared with a 0.19% dip on the benchmark S&P/ASX200 index.

Higher claims in Argentina, crop damage in Latin America, U.K. floods and storms in North American and Europe offset benign catastrophe claims in Australia, QBE said in a statement.

In contrast, QBE's arch rival Insurance Australia Group has raised its profit margin guidance for 2014 from as low as 14.5% to up to 18.3% on lower disaster claims in Australia.

IAG will announce full year-results on Aug. 19, the same day QBE will post its interim results.