QBE CEO Pat Regan has agreed to a $421,000 bonus cut after shareholders complained about his proposed award following last year’s loss.

The company’s annual general meeting notice asks shareholders to approve 163,382 share-purchase conditional rights with an initial value of $1.684 million for Mr Regan, who led the Australian and New Zealand business before replacing John Neal in the top job in January.

The board believes the award is fair and reflects Mr Regan’s role running the local division, but shareholders have given it mixed feedback, QBE says.

“While a substantial number of shareholders indicated they concurred, a number of shareholders have also expressed reservations about the size of the award in the context of the group’s 2017 results.”

In response, Mr Regan has volunteered to take a 25% cut to the allocation, so he will receive rights to 122,537 shares worth $1.263 million, subject to approval at the meeting in Sydney on Thursday.

The company’s executive pay policy comprises fixed remuneration plus cash and shares under an incentive plan.

QBE reported an annual net loss of $US1.2 billion ($1.6 billion) last year due to natural catastrophes, writedowns and emerging market issues.

The Australian and New Zealand combined operating ratio improved to 91.9% from 92.7%.