QBE reveals damage caused by coronavirus pandemic on its insurance businesses

Major insurance provider QBE has revealed the damage the coronavirus pandemic has caused to its business.

QBE Insurance posted a net loss of $US712 million. Picture: Supplied.

Major insurance provider QBE Insurance has revealed the damage caused by the coronavirus pandemic, with its losses deepening by almost 250 per cent.

The company posted a net loss of $US712 million ($A993 million), a 249 per cent decrease compared with its 2019 interim result of $US479 million ($A669 million).

QBE said the result was slightly better than its previous forecasts, with its gross written premiums increasing 10 per cent to $US8.04 billion ($A11.2 billion).

The insurer recorded a $US335 million ($A467 million) hit from the impacts of COVID-19 and a further increase in catastrophe claims from significant hail and storms activity within Australia.

Catastrophe claims increased to $US304 million ($A425 million) from $US180 million ($A251 million), which exceeded its initial allowance of $US252 million ($A352 million).

QBE boss Pat Regan says the company is in good shape to weather the coronavirus storm. Picture: Britta Campion / The Australian

QBE chief executive Pat Regan said despite the loss, the company remained well capitalised to endure the ongoing impacts of the pandemic.

“Notwithstanding 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,” Mr Regan said.

“We continue to support customers through various initiatives including premium refunds, premium deferrals, extending credit and counselling services to vulnerable customers and accelerating claims payments.”

QBE has issued an interim dividend to shareholders of four cents per share in Australian dollar terms.