While the sharemarket reaches a seven-month high and the Aussie dollar climbs, QBE Insurance is one of the few Australian companies that isn’t benefiting.

The insurer’s shares plummeted last week as the dollar surged against the US dollar on news that Australia has avoided a technical recession for now.

Credit Suisse analyst Arjan van Veen told insuranceNEWS.com.au QBE gave guidance of total premiums for this year of $16.2 billion, which was predicated around an exchange rate of US68 cents. But the Australian dollar is now worth US80 cents.

“If you just look at currency changes then you’re wiping 10% off premiums,” he said. “That’s equivalent to a loss of $1.6 billion in premiums.

“In terms of earnings, when the impact on investment income is considered it’s also about a 6-7% fall in net profit.”

Mr van Veen says Credit Suisse has already adjusted its forecast for QBE and has downgraded its numbers.

QBE shares fell to $18.61 last week after a three-month high of around $22.50 last month.

The company declined to comment.