Australia’s QBE Insurance coverage Group mentioned on Thursday its first-quarter written premiums grew 22% in fixed forex phrases, as volatility due to the Russia-Ukraine warfare led to extra demand to insure crops.
The warfare in Ukraine has rattled commodity markets because it threatens to choke provides from Ukraine and Russia, which collectively account for about 30% of the world’s wheat commerce. It has led to a surge in demand for Australian grain.
QBE mentioned its quarterly gross written premiums rose to $6.9 billion and forecast premiums for crop insurance coverage would soar by greater than 22% to about $3.3 billion this yr.
The corporate’s shares rose 3.5% to A$12.44 by 0100 GMT and have been set for his or her sharpest one-day achieve since March 22.
“Regardless of a variety of pure catastrophes and vital geopolitical occasions, constructive momentum skilled by FY21 continued into 1Q22,” Group Chief Govt Andrew Horton mentioned.
QBE mentioned it anticipated its annual group mixed working ratio to enhance on final yr’s ratio of about 94%. Mixed ratio is a key measure of profitability for insurers and a degree beneath 100% signifies an underwriting revenue.
It additionally forecast a internet affect of round $75 million from its publicity to the broader Russia-Ukraine battle from political violence, political threat and aviation insurance coverage.
(Reporting by Savyata Mishra in Bengaluru; modifying by Christian Schmollinger and Jamie Freed)
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