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.
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