QBE Insurance Group (QBE) H2 2024 earnings summary

Executive summary

• Achieved net profit after tax of $1,779M, up 31% year-over-year, with adjusted ROE at 18.2%, the highest in over a decade.

• Gross written premium grew 3% to $22.4B, or 9% excluding Crop and portfolio exits, with premium rate increases averaging 5.5%.

• Combined operating ratio improved to 93.1% from 95.2%, reflecting stronger underwriting and lower catastrophe claims.

• Full-year dividend of 87¢ per share (50% payout), up 40% year-over-year, with book value per share up 17% to $11.5.

• Portfolio optimization and strategic exits enhanced earnings quality and reduced drag from underperforming segments.

Financial highlights

• Adjusted net profit rose to $1.73B–$1.8B, up 27%–31% year-over-year, with group ROE of 18.2%.

• GWP reached $22.4B, up 3% year-over-year, or 9% excluding Crop and exits.

• Investment income hit a record $1.5B (4.9% return), with core fixed income yield exiting at 4.3%.

• Insurance profit increased to $2,130M from $1,617M, with profit margin at 12%.

• Debt to total capital reduced to 19.9%, and APRA PCA multiple at 1.86x, above the 1.6x–1.8x target range.

Outlook and guidance

• 2025 guidance targets mid-single digit GWP growth (constant currency) and a group combined operating ratio around 92.5%.

• Portfolio exits to reduce GWP by ~$250M, with drag from non-core segments halving.

• Investment returns outlook remains strong, with exit running yield at 4.3%.

• Capital allocation will prioritize reinvestment for growth, with surplus capital returned if not needed.