QBE Insurance: Challenging to Maintain Current Levels of Profitability

QBE Insurance expects mid-single-digit gross written premium growth and a combined operating ratio (claims plus operating expenses/premiums) of 93.5% in 2024, guidance the global insurer reaffirmed after its first-quarter 2024 update. Our forecasts are in broad agreeance. First-quarter GWP declined 2% due to lower crop premiums, with growth excluding the more volatile crop segment up 9%. Premium rate increases of 7.3% have slowed from recent quarters, and we expect will continue to moderate as returns across the insurance industry improve.