QBE doubles half-year net profit

QBE doubles half-year net profit | Insurance Business Australia

Insurance News

QBE doubles half-year net profit

CEO Horton hails “positive start to the year”

Insurance News

By
Terry Gangcuangco

QBE Insurance Group has published its interim financial results, showing a doubling of net profit after income tax in the first six months of 2024.

Metric

H1 2024

H1 2023

Gross written premium

US$13.05 billion

US$12.80 billion

Net insurance revenue

US$8.51 billion

US$7.98 billion

Combined operating ratio

93.8%

98.8%

Net investment income

US$733 million

US$662 million

Net profit after income tax

US$802 million

US$400 million

Adjusted net profit after income tax

US$777 million

US$405 million

According to QBE, its combined operating improved “meaningfully” due to lower catastrophe costs, more stable reserve development, and supportive premium rate increases.

Along with the results, the group also unveiled reserve transactions with RiverStone International and Enstar aimed at de-risking US$1.6 billion in reserves while reducing risk associated with the run-off of non-core lines in North America.

Commenting on QBE’s performance, group chief executive Andrew Horton (pictured) said: “We delivered a series of important initiatives through the period to support greater resilience and consistency. The shape and health of our underwriting portfolio has improved materially over recent years, and as a result, our priorities are becoming more future-focused.

“We announced our decision to commence an orderly closure of North America middle-market, which supports our continued focus on portfolio optimisation and improving performance in North America. This will allow us to refocus our North America strategy on those businesses which hold more meaningful market position, relevance, and scale.

“I’m pleased with the improved alignment and connectivity across the enterprise. Our people remain highly engaged, and we are building a high-performing, purpose-led organisation.”

The CEO added that they remain excited about the outlook for the business, having seen “a positive start to the year” as a result of improved underwriting performance and strong return on equity.

QBE’s board declared an interim dividend of 24 Australian cents per share payable in September.

What do you think about this story? Share your thoughts in the comments below.