QBE says it has produced “encouraging” results this year, with group-wide renewal premium rate increases of 5.9% in the first nine months and gross written premium growth of 2%.

Premium rates went up 4.9% in the third quarter, marginally lower than in the first half, the insurer said today in an update.

It says renewals for the North America and international businesses “tend to have a greater first-half bias towards classes where claims inflation remains more elevated”, including property and accident and health.

“Overall group-wide renewal premium rate increases continue to track at or above inflation in the majority of classes. Performance through the year to date is encouraging, and we are on track to deliver our full-year outlook.”

QBE is aiming for a combined operating ratio of 93.5% and constant-currency gross written premium growth of about 3% this financial year.

It says the GWP growth target includes a $US600 million ($925 million) headwind from exited portfolios, slightly higher than the $US550 million ($848 million) flagged in its half-year earnings result, as the North America middle market run-off tracks ahead of expectations.

The North America business achieved year-to-date premium rate increases of 8.4%; Australia Pacific 8.9%; and international 3.9%.

QBE says its exposure to hurricanes Milton and Helene has been “notably lower” than historic experience given recent portfolio exits and portfolio optimisation initiatives.

“Despite the heavy bias of global catastrophe costs toward North America in 2024, performance for QBE’s North America division (and non-core segment within) is tracking in line with expectations.”

QBE says its second-half catastrophe experience is tracking in line with expectations, with about $US425 million ($655 million) net cost of claims for the four months to October. Its second-half allowance is $US671 million ($1.03 billion), and its full-year allowance is $US1.28 billion ($1.97 billion).