The news: Insurance giant QBE has reaffirmed its half-year premium growth guidance despite a decision to start an orderly closure of its North America middle-market business.

The numbers: The insurer said it will book a restructuring charge of US$100 million ($150 million) before tax in the FY24 results as it stops renewing the North America middle-market policies, which accounted for gross written premium of US$500 million.

It expects gross written premiums to rise 3% to US$13.1 billion in the first half on constant currency growth, and reaffirmed guidance for premiums to grow in the “mid-single digits” in the year ahead.

The context: QBE said the North America middle-market segment had experienced performance challenges over several years and its closure would refocus strategy on businesses with more meaningful market position, relevance and scale. It said the closure would have no incremental impact on its strategy for North America’s three core businesses — specialty, crop and commercial.

The company also said its group catastrophe costs in the five months to May rose to US$500 million, against a first-half catastrophe budget of US$609 million, largely on account of US convective storms, flooding in Dubai floods and an up to US$225 million in costs on its exposure to the ongoing civil unrest in New Caledonia.

Investment returns also improved from the first quarter, and are expected to close the half at US$643 million, up from US$406 million, it said. QBE will detail first-half results in August.