The group premium rate – the average change in insurance premium rates across its global portfolio – rose about 1.5% in the nine months to September 30, modestly below the first-half pace because business property insurance prices grew slowly.
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Shares of QBE Insurance tumbled as much as 5.9% to A$18.62, their weakest point since April 7, even after the group unveiled an on-market share buy-back totalling A$450 million ($293.76 million), which is expected to commence next month.
Gross written premiums rose 6% to $18.6 billion in the first nine months of the fiscal year, matching the first-half growth rate and suggesting momentum slowed in the third quarter.
Greg Smith, an investment specialist at Generate KiwiSaver Scheme, said QBE and other insurers had grown accustomed to strong premium increases, something many Australasians would recognise from rising annual premiums, adding that growth now appeared to be slowing.
Australia’s QBE Insurance hits 7-month low on slowing premium growth rate
