QBE Insurance Group (QBE) H2 2023 earnings summary

Executive summary

• FY23 performance improved, with 10% GWP growth, 95.2% COR and adjusted cash ROE of 16.0%; COR was 94.6% excluding the reserve transaction impact.

• Underwriting resilience improved as catastrophe claims came in below allowance, while investment returns strengthened.

Financial highlights

• GWP rose to $21,748M from $19,993M; net insurance revenue increased 11% to $16,599M.

• Insurance operating result increased to $796M from $614M; FY23 net profit after tax was $1,355M and adjusted cash profit after tax was $1,362M.

• Investment return was 4.7%, with total investment income of $1,374M; FY23 exit fixed-income running yield was 4.6%.

Outlook and guidance

• FY24 constant-currency GWP growth expected in the mid-single digits; premium rate increases expected to remain supportive.

• FY24 COR guidance is 93.5%, with a through-cycle expectation in the low-to-mid 90s.

• FY24 catastrophe allowance set at $1,280M; 2024 allowance would have covered claims in 8 of the past 10 years on an inflation- and business-exit-adjusted basis.

• FY23 exit running yield was 4.6%; portfolio risk assets are to be rebalanced toward a 15% target allocation.