QBE has revised its catastrophe costs in a trading update provided today, citing “additional pressure” from a series of North American convective storms last month.

The insurer now expects to report about $US700 million ($1.02 billion) in net catastrophe costs in its first-half financial results, which will be released on August 10. In its last update in May QBE had an allowance of $US535 million ($784 million) for the June half.

Its full-year catastrophe budget has subsequently been adjusted to $US1.33 billion ($1.95 billion). QBE previously set an allowance of $US1.175 billion ($1.73 billion).

The insurer says its first-half result is also expected to include another $US40 million ($58 million) in crop adverse development as well as previously flagged catastrophe costs of $US140 million ($205 million) from 2022 events.

QBE says its full-year earnings guidance remains on track despite today’s announcements.

The insurer continues to expect constant currency gross written premium growth of about 10% for this year and a group combined operating ratio of 94.5%.

“Combined operating ratio outlook now includes a revised FY23 catastrophe budget of $US1.33 billion, and continues to exclude the upfront impact from the reserve transaction announced in February,” QBE says in the update.

QBE says premium growth continues to have momentum and is expecting increase of about 13% on a constant currency basis.

“Group-wide premium rate increases are expected to be 10% in both [first-half] and [second quarter],” it says.

The insurer is expecting first-half gross written premium and net insurance revenue of US$12.8 billion ($18.7 billion) and US$7.9 billion ($11.6 billion) respectively.