Insurer partners said profits could be cut by between AUD50 m ( $ 500 m ) and 5000 m in 2019 because of an increased allowance for large individual losses and catastrophe claims which could range between AUD1.2bn to AUD1.4bn . The company said , however , a AUD130 m cost - cutting programme will help its underwriting operations maintain profitability . The firm had already announced a series of profit downgrades . Shaw and financial analyst Brett Le Mesurier said the QBE announcement looks like another such downgrade . While he backed the firm ’s decision to sell non - core businesses , Le Mesurier said the remainder still showed the firm lacking a competitive advantage in the most important markets .
Insurer QBE said profits could be cut by between AUD50m ($36m) and AUD100m in 2019 because of an increased allowance for large individual risk and catastrophe claims which could range between AUD1.2bn to AUD1.4bn. The company said, however, a AUD130m cost-cutting programme will help its underwriting operations maintain profitability. The firm had already announced a series of profit downgrades. Shaw and Partners analyst Brett Le Mesurier said the QBE announcement looks like another such downgrade. While he backed the firm’s decision to sell non-core businesses, Le Mesurier said the remainder still showed the firm lacking a competitive advantage in the most important markets.