QBE expects $1.2 billion loss in 2017

Company News

by Kathy Skantzos

Insurance company QBE (ASX:QBE) has reported it expects a $1.2 billion full year loss for 2017, after conducting a detailed review of its operations.

The insurer said it will write down $230 million in the value of its North American operations, which it blamed on the US corporate tax rate cut to 21 per cent.

The company also said it would write down in the carrying value of its North American operations by $700 million.

The insurer expects its combined operating ratio (COR) could rise to 104 per cent, well above its target range of 100-102 per cent.

Net costs of catastrophes was $130 million more than expected, which increased the combined operating ratio by more than a per cent, which the company pinned down to wildfires in California and storms in Australia in December.

Shares in QBE (ASX:QBE) are trading 5.34 per cent lower at $9.93.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.