QBE Insurance Group (QBE) H2 2024 earnings summary

Executive summary

• Net profit after tax rose to $1,779M in FY24, up 31% year-over-year, with adjusted net profit after tax at $1,729M and adjusted ROE at 18.2%, the highest in over a decade.

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

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

• Record investment income reached $1,488M, with a 4.9% return, driven by higher interest rates and strong risk asset returns.

• Full-year dividend declared at 87 Australian cents per share, a 50% payout, up 40% year-over-year.

Financial highlights

• Net insurance revenue increased to $17.8B from $16.6B year-over-year.

• Insurance profit rose to $2,130M from $1,617M, with profit margin at 12.0%.

• Basic EPS (adjusted) was 115.2 US cents, up from 91.4 US cents in 2023.

• Debt to total capital reduced to 19.9% from 21.8%, and APRA PCA multiple at 1.86x, above the 1.6–1.8x target range.

• Expense ratio increased to 12.2% due to modernization spend, expected to remain elevated in 2025.

Outlook and guidance

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

• Premium rate increases expected to remain supportive; portfolio exits to reduce GWP by ~$250M.

• Investment returns outlook remains strong, with exit core fixed income yield at 4.3%.

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

• North America performance to improve as non-core line exits conclude; continued investment in modernization and core franchises.