QBE Insurance Group (QBE) H1 2024 earnings summary

Executive summary

• Statutory net profit after tax rose to $802 million in 1H24 from $400 million in 1H23, with adjusted net profit after tax at $777 million, up from $405 million year-over-year, and adjusted ROE at 16.9% for 1H24.

• Underwriting performance strengthened, with a combined operating ratio of 93.8% versus 98.8% last year, reflecting stronger underwriting and lower catastrophe claims.

• Interim dividend increased to 24 Australian cents per share (A$360 million payout), 20% franked, with a 31% payout ratio, up from 14 cents last year.

• Strategic actions included closure of North America middle-market business and major reserve transactions to reduce volatility and improve resilience.

• Portfolio optimization and modernization initiatives, including AI copilots and new specialty teams, are driving improved performance.

Financial highlights

• Gross written premium grew 2% to $13,051 million; underlying growth was 11% excluding exited lines and crop.

• Net profit after tax reached $802 million, with adjusted profit after tax at $777 million.

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

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

• APRA PCA multiple at 1.77x, at the upper end of the 1.6-1.8 target range.

Outlook and guidance

• Full-year 2024 guidance targets constant currency GWP growth of ~3%, revised from mid-single digits due to portfolio exits.

• Combined operating ratio expected at ~93.5% for the full year, absorbing part of the $40 million upfront reserve transaction cost.

• Premium rate increases anticipated to remain supportive, with targeted growth opportunities.

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

• QBE to provide a 3Q24 update on 27 Nov 2024.