QBE Insurance Group (QBE) Q3 2024 TU earnings summary

Executive summary

• QBE reported 2% gross written premium (GWP) growth year-over-year for the nine months to 30 September 2024, with growth driven by renewal premium rate increases of 5.9%.

• Excluding non-core portfolio exits, GWP increased by 5%, and by 9% further excluding Crop.

• Catastrophe claims in the second half are tracking in line with expectations, with net costs of ~$425M for the four months to October, against a 2H24 allowance of $671M.

• Investment performance was strong in 3Q24, with a net return of $408M and a core fixed income yield of ~4.4%.

Financial highlights

• Group-wide renewal premium rate increases were 4.9% in 3Q24, slightly lower than the first half.

• Total investment funds under management (FUM) rose to $33.4B in 3Q24 from $30.5B at 1H24.

• Risk assets accounted for ~13% of the investment portfolio.

• The $1.6B reserve transaction completed in October will reduce claims reserves and investment FUM in 4Q24.

Outlook and guidance

• FY24 Group constant currency GWP growth is expected to be around 3%, including a -$600M headwind from exited portfolios.

• FY24 Group combined operating ratio is forecast at around 93.5%, assuming catastrophe experience aligns with the 2H24 allowance.