QBE achieved third-quarter gross written premium (GWP) growth of 7% on the prior corresponding period, and group-wide renewal rate increases averaged 9.6%, the insurer said today in a Q3 performance update. 

Retention remains at “favourable” levels as GWP growth reached 10% in the year to September, according to the update. 

Based on the Q3 results, QBE says the business is still aiming for a GWP growth of around 10% on a constant currency basis and group combined operating ratio of 94.5%. 

“We expect the supportive premium rate environment should continue into 2024,” QBE said. 

QBE says in the update natural catastrophe activity has continued over recent months, underscored by multiple storm, flood and wildfire events in Europe and North America, alongside hurricanes Idalia, Otis and Hillary.  

Catastrophe claims through the period have however trended favourably relative to QBE’s revised FY23 catastrophe cost assumption of about $US1.3 billion ($1.97 billion). 

The insurer says net cost of catastrophe claims in the four months to October is expected to be about $US250 million ($380 million), resulting in catastrophe costs of $US950 million ($1.44 billion) in the year to October. 

On the cost environment, QBE says claims inflation remains broadly similar with that outlined at its half-year results briefing in August. 

“Whilst some early moderation is clear in certain lines, inflation has remained more persistent across a small number of portfolios including Australia Pacific personal lines, and North America non-core lines and Accident & Health,” QBE said. 

“This is expected to result in some strain on the current year, and modest adverse prior year development. These impacts, alongside a weaker North America Crop result are expected to be offset by lower catastrophe costs in 2H23.” 

The insurer says the North America crop result is expected to be adverse, reflecting the impact of lower commodity prices and drier conditions across certain states. 

QBE’s data indicates the North America crop business is set for a current accident year combined operating ratio of around 93-97%.