QBE has flagged a full-year loss of about $US1.2 billion ($A1.5 billion) due to almost $US1 billion in one-off costs and blowouts associated with wildfires in California and Hurricane Maria in the Caribbean.
The insurance giant said the devastating US fires and Hurricane Maria - plus December storms in Australia - had added about $US130 million to its catastrophe costs in the fourth quarter of 2017.
The catastrophes increased the full-year combined operating ratio - which measures expense, commission and claims ratios - by about one per cent over the previously estimated target range of 94.5 to 96 per cent.
The expected loss for the 12 months to December 31 - which compares to a $US844 million profit in 2016 - will also include a $US700 million goodwill impairment against QBE's North American business, reflecting updated long term assumptions.
A $US230 million writedown will also be recorded against the carrying value of deferred tax assets due to the cut in the US corporate tax rate.
Chief executive Pat Regan, who began in the top role on January 1, also called out another poor performance by QBE's emerging market operations, with a strategic review into its Latin American unit underway as the insurer looks to simplify and reduce risk.
Mr Regan said he will update the market on his plans when QBE announces its financial results on February 26.
"This has been a challenging year for QBE, reflecting an unprecedented cost of catastrophes as well as the particularly disappointing deterioration in our emerging markets businesses," Mr Regan said.
QBE shares dropped as much as six per cent on the news on Tuesday, but recovered to close at $10.43, down six cents, or 0.6 per cent.
They have fallen 23 per cent since May, 2017.
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