By Alice Uribe
SYDNEY--QBE Insurance Group Ltd. has said it expects to post a first-half statutory net loss of around US$750 million, after taking a hit from Covid-19 related costs, higher catastrophe claims and prior accident year claims.
The Australian general insurer said a net investment loss of around US$125 million arising from investment market volatility would also hit profits.
QBE estimated that total Covid-19 related costs would be around US$600 million before tax, and said this included around US$265 million of potential further net claims that could emerge over the next 12-18 months.
These are primarily in trade credit and lenders mortgage insurance, but also in casualty, accident and health, landlords' insurance and other classes.
QBE said its capital position "remains strong when measured against both regulatory and rating agency capital requirements," and will report its interim results on Aug. 13.
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