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Big loss drives QBE to bottom of pack among Australia's top 4 insurers

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Big loss drives QBE to bottom of pack among Australia's top 4 insurers

Catastrophe losses and struggles in emerging markets pushed QBE Insurance Group Ltd. to the worst performance among the four largest Australian insurers by assets for the six months ended Dec. 31, 2017.

QBE, which reports in U.S. dollars, recorded a net loss of A$2.05 billion in the second half of 2017, compared to a profit of A$768 million in the year-ago period, according to S&P Global Market Intelligence data. The company attributed the loss to heavy catastrophe losses, mostly from its North America and the Caribbean business, and a sharp decline in the performance of its emerging markets businesses. To simplify its business, QBE has announced the sale of its struggling Latin American operations and Thai unit.

The three other Australian insurers all reported profits in their most recent six-month periods. Suncorp Group Ltd.'s net profit after tax for its fiscal first half to Dec. 31, 2017, dropped 15.8% to A$452 million from A$537 million, on the back of rising general insurance claims caused by natural hazards; higher operating costs from strategic investments; and increasing regulatory costs.

Meanwhile, Insurance Australia Group Ltd. posted net profit after tax of A$551 million in the fiscal first half to Dec. 31, 2017, up 23.5% year over year as the company benefited from rate increases and falls in claims costs. AMP Ltd. recorded net profit after tax of A$403 million in the six months to Dec. 31, 2017, compared to a net loss of A$867 million in the year-ago period, when it was hit by struggles in its Australian wealth protection business.

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