QBE’s catastrophe costs have reached about $US420 million ($654 million) for the year so far, the company told last week’s annual general meeting, where it affirmed full-year financial guidance.

“Catastrophe activity was driven by the LA wildfires, flooding in Queensland, Cyclone Alfred and a series of convective storm events in North America,” group CEO Andrew Horton said.

The net cost for the four months to April compares with a first-half allowance of $US549 million ($855 million).

QBE says that despite the challenging period for perils, underwriting performance has been resilient and it has reiterated a full-year combined operating ratio target of about 92.5%.

For the first quarter, gross written premium increased 8% on a constant-currency basis as market conditions remained supportive. The insurer targets full-year growth around the mid single digits, amid a drag from exits in North American non-core lines.

“In all, we’re making good progress against both our financial plan for the year and our strategic agenda,” Mr Horton said.

The company has been monitoring global trade developments in the early part of the year.

“At present, we expect any underwriting risks associated with initial trade disruption should be limited,” Mr Horton said. “Over the near-term, the proactive management of any emerging inflationary pressures will be our primary focus.”

He says QBE’s portfolio optimisation work has delivered meaningful change over the past few years, including exits and reserve transactions, helping to reduce earnings volatility. The company has elevated its focus on customers as part of its strategic priorities.

Changes have been made to improve performance in North America, and across the group a modernisation program is continuing, Mr Horton told the meeting.

“Our aim is to make it easier for our customers and partners to do business with us.

“Our [Australia Pacific] business continues to progress and modernisation work has commenced for the international business, where learnings can be shared across the enterprise.”