Australian insurer now expects H1 2014 profit to drop 18%
Shares in Australian insurer QBE dropped 11% in trading today after the company said its first-half 2014 profit would be down 18% on the same period last year.
QBE’s shares closed at A$10.57 on trading on the Australian Stock Exchange, compared with Monday’s closing price of A$11.89.
The share fall follows QBE’s announcement that it expects its first-half 2014 profit after tax to be US$390m, compared with the US$477m it made in the first half of 2013.
The profit warning was triggered by QBE needing to strengthen reserves by US$170m for its Argentine workers’ compensation business because of higher-than-expected claims on large individual risks.
As a result, the company now expects its first-half combined operating ratio to be between 96% and 97%, compared with analysts’ consensus expectations of around 93%.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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