QBE has announced that it expects to report a £1.1bn statutory net loss for its FY20 result that will be fully released on 19 February 2021.
The news follows a 1H20 adjusted net cash loss of £492m, which the firm expects to widen to £577m for the remainder of the year.
The company has attributed the blow to a mixture of the impact of Covid-19, catastrophe experience, prior accident year claims development, and invested income.
Richard Pryce, interim CEO at the group, said: “While I am very disappointed with the headline statutory loss, I am increasingly confident about the pricing cycle, particularly in the northern hemisphere, and the outlook for the underlying business.”
In its FY20 forecast, the company has attributed the cost of Covid-19 to be £444m, primarily due to additional net claims costs across trade credit, lenders’ mortgage insurance, casualty classes, and business interruption.
Despite the losses, the company is looking to capitalise on “favourable market conditions” and a strong balance sheet to “fund expected growth”.
Pryce added: “As we move into 2021, my focus remains on ensuring the Group takes full advantage of currently favourable market conditions by locking in margin expansion while driving targeted growth in portfolios and regions offering the most profitable new business opportunities.”