QBE CEO Frank O’Halloran has assured investors that the four hurricanes which hit the US east coast over the past few weeks will not affect the group’s profit. He says the expected insurance profit margin for 2004 of 12-13% is unchanged.

Confirming that estimated net claims from the hurricanes are within the allowance for large losses and catastrophes included in the company’s insurance liabilities, he said QBE “receives substantial premium to cover large insurance losses and catastrophes in any one year”.

In an exercise to calm a possibly skittish market, he reminded investors that QBE “also purchases reinsurance to protect the operating profit and the balance sheet from such large losses and catastrophes”.