QBE's Interim Profit Doubles, Dividend Raised

By Alice Uribe

SYDNEY--QBE Insurance Group said its interim net profit doubled and it raised its dividend, amid continued premium renewal rate increases and lower catastrophe costs.

The Australia-listed insurer, which reports in U.S. dollars, said earnings for the six months through June were $802 million, compared to $400 million the previous year. Revenue rose by 5% on year to $10.44 billion.

"We have seen a positive start to the year, highlighted by further improvement in underwriting performance and strong return on equity," said Chief Executive Andrew Horton.

QBE's combined operating ratio, a measure of underwriting profitability comparing premiums with losses and expenses, improved to 93.8% from 98.8% in the prior year.

Gross written premium rose by 2% to $13.05 billion and net insurance revenue was $8.51 billion, up from US$7.98 billion the previous year.

QBE affirmed full-year guidance for a combined operating ratio of around 93.5%. It made changes to its guidance for full-year group constant currency GWP growth, now expecting it to grow by around 3%, where previously it had said growth would be in the mid-single digits.

Directors of the company declared an interim dividend of 24 Australian cents (US$0.16) a share, compared to 14 Australian cents last year.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

August 08, 2024 18:22 ET (22:22 GMT)

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