QBE shares drop on earnings miss
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More news: Shares in QBE are down nearly 3.5% to $15.83 despite the insurance giant more than doubling full-year profit.
UBS analyst Scott Russell said the result was on the disappointing side, with earnings and dividends both missing consensus estimates and FY24 guidance looking "soft".
Higher premiums, investment income boost QBE full-year profit
The news: Insurance giant QBE has lifted its full-year profit and dividend on the back of strong premium growth and higher investment income.
The numbers: The insurer said net profit for the year to December 2023 more than doubled to USD1.36 billion ($2.08 billion). Revenue was up 10% from a year ago to USD20.83 billion. It will pay a partly-franked final dividend of 48 cents a share, up from 30 cents a year ago.
The context: The company reported a 10% increase in gross premiums across the full year. QBE, which operates in 27 countries, reported lower catastrophic claims for the year despite the impact of natural hazards and catastrophes.
Its investment income also jumped to USD1.37 billion, with higher interest rates supporting fixed income returns and favourable mark-to-market impacts. It expects premiums to rise in mid-single digits in 2024, while investment income returns are expected to stay strong around current levels.
What they said: “We are pleased with the ongoing progress across our strategic priorities, and expect trading conditions to remain favourable in the year ahead,” group CEO Andrew Horton said.
The source: ASX announcement
