(Adds context, share movement) Oct 3 (Reuters) - Australia's...

(Adds context, share movement)

Oct 3 (Reuters) - Australia's QBE Insurance Group Ltd (QBE) said it increased its allowance for large individual risk and catastrophe claims to $1.75 billion for 2017, following an impact on its business from hurricanes in the Atlantic and earthquakes in Mexico.

QBE expects a pre-tax impact of about $600 million to its 2017 earnings, the company said in a statement on Tuesday.

The company's shares fell more than 5 percent following the announcement. The stock was also the largest drag on the Australian benchmark index (xjo).

Insurers and reinsurers in 2017 faced a large spike in claims following a slew of devastating natural disasters, ranging from Cyclone Debbie earlier in the year to Hurricane Maria in September.

Fitch Ratings said the probability of ratings downgrades for global insurers and reinsurers was mounting as the industry faced more than $100 billion in 2017 catastrophe losses.

QBE Chief Executive John Neal said it was too early to speculate how much reinsurance and primary insurance prices would rise as a result of recent disasters.