Agroinsurance

NEWS

QBE Expects 50% Profit Hit on Record Catastrophe Losses

16.01.2012 34 views

QBE Expects 50% Profit Hit on Record Catastrophe Losses

QBE's 2011 profit is expected to fall by up to 50 per cent following record levels of insurance claims from natural disasters and the impact of weaker investment markets. QBE said its insurance profit margin in the year to December 31 is expected to be between seven and 7.5 per cent, down from the original forecast of at least 11 per cent.

QBE's 2011 profit is expected to fall by up to 50 per cent following record levels of insurance claims from natural disasters and the impact of weaker investment markets.

QBE said its insurance profit margin in the year to December 31 is expected to be between seven and 7.5 per cent, down from the original forecast of at least 11 per cent.

After assessing the impact of several catastrophes in Australia and around the world, QBE now expects its profit after tax in calendar 2011 to be down by between 40 per cent to 50 per cent from 2010's $US1.28 billion.

"While catastrophes in the second half of 2011 have attracted fewer headlines than those earlier in the year, the frequency of events continued at an unprecedented level,'' chief executive Frank O'Halloran said in a statement.

In the United States, where QBE is a major insurer, Hurricane Irene, tornadoes, wildfires, hail, flood, wind and snow storms all resulted in a large number of claims.

"Our US crop insurance business produced a below average underwriting profit due to the severe hail and flood claims,'' Mr O'Halloran said.

Bushfires in Western Australia, storms in Melbourne, floods and riots in Europe and floods in Thailand also sparked huge numbers of claims.

QBE's final dividend for 2011 is expected to significantly reduced, dropping to 25 cents per share from 66 cents per share from the same period in 2010.

That would take total dividends for 2011 to 87 cents, down from $1.28 in 2010.

Meanwhile, QBE shares were in a trading halt after reports its United States business is being investigated by regulators.

New York's Department of Financial Services reportedly is investigating banks and insurance companies over allegations they've made excessive profits on policies that they force home loan borrowers to pay for when their insurance lapses.

Media reports claim Balboa Insurance Company, which QBE acquired in February last year from Bank of America, is included in the investigation.

Balboa is one of the US's largest providers of insurance to lenders relating to foreclosed homes and homes with distressed buyers.

QBE requested its shares be halted from trading in light of the reports, it said in a letter to the Australian Securities Exchange (ASX).

The company is due to issue a release to the market regarding its preliminary 2011 results and 2012 re-insurance protections today, it said.

QBE shares last traded at $13.

Source - http://www.perthnow.com.au/

EVENTS

2024 AgroInsurance International Conference: New Partners and Agenda updates

26.02.2024

2024 AgroInsurance International Conference will take place on June 3-5, 2024 in Belgrade, Serbia, at the Hyatt Regency Hotel. Planet Labs (USA) and GAF AG (Germany) are sponsors of our conference. Agremo (Serbia) has been confirmed as the Organization Partner. More partners and sponsors to be announced in March 2024.

RISK EVENTS

Spain - 30% of La Palma's banana production has already been lost due to the advance of the lava

14.10.2021

More than three weeks after the Cumbre Vieja volcano erupted, the lava that continues to flow from its interior continues to devastate everything in its path, destroying houses, infrastructure, and banana plantations. The production of Platanos de Canarias is the economic engine of the island, accounting for 50% of its GDP and 30% of the jobs on the island.

USA - Widespread root rot crop loss in 2022-23

Root rot has been established in some pea and lentil fields across North Dakota and Montana, with widespread crop loss observed in 2022-23. To help, North Dakota State University (NDSU) research is focusing on what farmers can do to reduce their root rot risk as they begin seeding their pulse crops this spring.

19.04.2024

UAE - Unprecedented floods destroy greenhouses

The United Arab Emirates experienced a "historic climatic event", according to the National Meteorological Center, which stated, "The UAE experienced the heaviest rainfall in 75 years, and the "Khatm Al-Shakla" area in Al Ain received 254.8 mm of rain in less than 24 hours." That's the equivalent of two years' rainfall by the country's standards.

19.04.2024

Philippines - P184-million crop loss to El Niño reported

Agricultural crops worth approximately P184.63 million suffered damage, while 3,427 farmers grappled with the effects of the El Niño phenomenon. Sylvia Dela Cruz, the provincial agriculturist of Capiz, reported that data from 13 municipalities showed 3,115.11 hectares of rice land impacted, with 852.41 hectares totally damaged and 2,272.70 hectares partially damaged.

19.04.2024

Canada - The B.C. agriculture sector continues to face relentless challenges, one after another

Facing increasing drought, alarming climate change, high levels of food insecurity and a myriad of distinct microclimates in all parts of the province, farmers are continually searching for ways to mitigate their obstacles.

19.04.2024

Cocoa prices hit records as West African yields decline

Cocoa prices broke $10,000 per ton for the first time in March, amid disease outbreaks and destructive weather patterns in West Africa. Cocoa futures were as high as $10,080 in New York at the close of the first quarter, having more than doubled this year – due to expectations of a shortage of cocoa beans, the raw material used to make chocolate.

19.04.2024

Bangladesh - Climate change in the north-west

The north-west — Rajshahi and Rangpur divisions — of Bangladesh produces more than one-third of the country’s staple food, especially boro rice. The region has 40 per cent of the country’s total irrigated area and 30 per cent of the net cultivable area, with the highest average rice yield.

19.04.2024

Canada - Blossoms arrive early, farmers fearful of April frost

All eyes are on the short-term weather forecast for local stone fruit farmers thanks to Mother Nature’s unpredictable ways. In a strange twist that saw this year’s mild winter help create an early explosion of healthy blooms over the past week, forecasted low overnight temperatures over the next two weeks could create a disastrous situation.

19.04.2024

USA - USDA reminds agricultural producers to report damage or losses following inclement weather

During the spring time of the year we do see inclement weather conditions, something that has occurred quite a bit over the past few weeks across the country. Due to this, the USDA Farm Service Agency (FSA) wants to remind agricultural producers to report damage or losses following inclement weather.