QBE issues a profit warning, its shares slide

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Insurance giant QBE issued a warning about higher than expected claims from its emerging markets business.

A short time ago, its shares were down 8% to $12.16.

The company says its emerging markets division has experienced significantly higher than expected claims during the first five months of the year

“We are encouraged by the improvement in the combined operating ratio in Australia & New Zealand as well as North America while Europe continues to perform well,” says CEO John Neal in a market update.

“Nonetheless, heightened claims activity in our emerging markets division will increase the Group’s interim and FY17 combined operating ratio by around 1%.”

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