Insurer QBE said profits could be cut by between AUD50m (around $1.2 billion) 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.
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.