QBE Insurance Group (QBE) H1 2024 earnings summary

Executive summary

• Adjusted net profit after tax rose 92% year-over-year to $777 million, with statutory profit after tax at $802 million, and return on equity reaching 16.9% for H1 2024.

• Gross written premium grew 2% to AUD 13.1 billion, or 11% excluding exited lines and crop, with premium rate increases of 6.7%.

• Combined operating ratio improved to 93.8% from 98.8% in 1H23, reflecting stronger underwriting and lower catastrophe claims.

• Interim dividend increased to AUD 0.24 per share, payout ratio of 31%, 20% franked, up from AUD 0.14 last year.

• Strategic actions included closure of U.S. Middle Market business and major reserve transactions to reduce volatility and improve North America performance.

Financial highlights

• Net profit after tax reached $802 million, up from $400 million in 1H23; adjusted profit after tax was $777 million.

• Gross written premium was AUD 13.1 billion, up 2% year-over-year; underlying growth closer to 11%.

• Investment income totaled $733 million, with an annualized return of 4.8%.

• Book value per share rose 12% year-over-year to AUD 10.1.

• Interim dividend payout of AUD 0.24 per share, with 20% franking, totaling AUD 360 million.

Outlook and guidance

• Full-year GWP growth outlook revised to around 3% (from mid-single digits), mainly due to Middle Market exit and lower crop premiums.

• Combined ratio guidance maintained at around 93.5%, absorbing half of the $40 million upfront reserve transaction cost.

• Expectation for another year of mid-teen returns in 2024.

• Tax rate expected to normalize closer to 27% in the second half.

• Ongoing investment in modernization and operational efficiency expected to continue in H2 2024.