QBE Insurance Group has reported a net profit after income tax of $802m for the half year ended 30 June 2024, compared with $400m for the prior period.
The Group reported a statutory insurance operating result of $828m compared with $377m in the prior period, primarily reflecting lower catastrophe costs and more stable reserve development.
Gross written premium increased 2% from continued premium rate increases, alongside targeted new business growth. This was partially offset by lower Crop premiums due to commodity price declines, and the impact of portfolio exits in North America and Australia Pacific.
The strong financial performance during the period was underpinned by an improvement in underwriting profitability and favourable investment returns. The combined operating ratio improved to 93.8% from 98.8% in the prior period, primarily driven by lower catastrophe costs and more stable reserve development.
Total net investment income was $502m compared with $461m in the prior period, or $733m compared with $662m when excluding the impacts of risk-free rates. The improvement was supported by strong risk asset performance and favourable interest rates across the core fixed-income portfolio.
Profit for the year also included $75m of pre-tax restructuring and related expenses resulting from the decision to exit the middle-market business in North America.
The Group’s effective tax rate was 23.3% compared with 30.8% in the prior period, reflecting the mix of corporate tax rates in the jurisdictions in which QBE operates and the utilisation of previously unrecognised tax losses in the North American tax group.
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Figures in US$, unless otherwise stated
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1H2024
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1H2023
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Gross written premium
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$13.05bn
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$12.80bn
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Insurance revenue
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$10.43bn
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$9.91bn
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Net insurance revenue
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$8.51bn
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$7.98bn
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Combined operating ratio
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93.8%
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98.8%
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Net investment income
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$733m
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$662m
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Net profit after income tax
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$802m
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$400m
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Adjusted net profit after income tax after non-controlling interests
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$777m
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$405m
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QBE Group CEO, Mr Andrew Horton, said, “QBE’s performance over the period tracked broadly in line with our plan, and we remain on track to deliver another solid result in 2024. Our efforts have continued to concentrate on building resilience into our business and reducing volatility, and I am confident we are executing the right decisions to deliver a more consistent organisation.”