The Australian insurer QBE Insurance Group Ltd. said on Thursday that they expect about $ 75 million in claims from the war in Ukraine, largely from political violence, political risks and aviation insurance losses.
In a business update submitted to the Australian Stock Exchange, the insurance company also revealed that it had agreed to transfer debts for a troubled North American surplus and surplus book, which is in runoff.
The transaction covers primary and excess general liability insurance taken out between 2016 and 2020. Bermuda-based runoff specialist Catalina General Insurance Ltd. will incur losses prior to December 31, 2021, and reserves of $ 334 million related to the business. The deal is expected to have a negative impact on QBE̵7;s 2022 guarantee result of approximately $ 50 million.
In its annual report for 2021, QBE reported $ 148 million in negative development related to the run-off book.
In its market update, QBE also reported $ 6.9 billion in gross revenue premiums for the first quarter, a 19% increase over the same period last year. The average renewal rate increased by 7.9%, the report said.