Higher premiums boost QBE half-year profit

The news: Insurer QBE has posted a sharp rise in half-year profit, helped by an increase in insurance premiums and higher investment income.

The numbers: The company reported net profit of $US400 million ($612 million) for the six months to 30 June, up from $US48 million a year earlier. It increased premiums by 10.2% on average, while investment income jumped to $US662 million, compared to a loss of $US20 million a year ago. QBE will pay an interim dividend of 14 cents a share.

The context: QBE said it would target a 10% increase in gross premiums across the full year. The insurer, which operates in 27 countries, has been affected by rising claims related to natural hazards and catastrophes. It reported catastrophe costs of $US699 million for the half year, with storms in New Zealand and North America adding to the bill.