QBE Insurance Group
(ASX:QBE) says that it has enough protection to cover any claims that may arise from the disastrous oil spill in the Gulf of Mexico.
In response to calls from investors worried about the company’s exposure to the oil spill, QBE released a statement saying that it has significant external reinsurance protections in place for claims of this nature.
Investors also expressed their concern over IAG’s recent announcement regarding a big increase in UK motor liability claims.
QBE says it has recently reviewed its claims reserves for UK motor liability claims and confirms that the reserves held at December 31, 2010 are adequate.
The insurer says these claims reserves include an allowance for the anticipated higher bodily injury claims being experienced in the UK.
Just yesterday, rival IAG cut its insurance margin for fiscal 2010 due to a significant increase in bodily injury claims in the UK.
For the 2009 calendar year QBE Insurance earned profit of $1.97 billion.
