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QBE Insurance Group Limited (ASX:QBE) has warned its first half result will be impacted by its Latin American operations.
Australia’s largest insurance company expects its interim net profit to fall to about $US390 million, from $US477 million the year before.
First half cash profit is also expected to drop to about $US415 million, from $US590 million the year before.
QBE says the result has been impacted by strengthening claims reserves by about $US170 million in Latin America, relating largely to the company’s Argentine workers’ compensation business.
The company has also attributed the anticipated half year result to higher than expected large individual risk claims and an adverse discount rate impact of around $US120 million, excluding Argentina.
QBE’s interim results are due for release on August 19.
QBE Insurance Group swung from a profit to a loss of $273 million in the 2013 calendar year.
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