QBE shares fall after premiums growth slows
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More news: QBE shares lowered on the ASX after the insurance group doubled its first-half profit, but saw premiums growth tumble year on year, and declared an interim dividend below consensus expectations.
Shares were down 4% to $15.67 by 12:35pm AEST.
QBE doubles HY profit on further premiums growth
The news: QBE Insurance Group doubled its half-year statutory profit and hiked its interim dividend as lower catastrophe costs boosted earnings in the six months to June.
The numbers: QBE posted first-half statutory net profit of $US802 million ($1.2 billion), up from USD400 million in the previous corresponding period.
The group boosted premiums by 6.7% across its portfolio, down from 10.2% growth a year prior, with a 9.9% lift in the Australia Pacific.
The company also declared an interim dividend of 24 US cents, up from 14 cents in the 2023 period, but below consensus estimates of 37 US cents.
The context: QBE said that premiums growth during the half was boosted by rate increases and growth in targeted new business. However, it was partly offset by sales of its offshore businesses.
The company also noted that its half-year result was aided by lower catastrophe costs and more stable reserve development.
QBE said it has entered a reserve transaction with Riverstone International and Nasdaq-listed Enstar that will de-risk its reserve exposure by about $1.6 billion in North America, incurring an upfront cost of around $85 million in the second half.
What they said: Chief executive Andrew Horton said: "We announced our decision to commence an orderly closure of North America middle-market, which supports our continued focus on portfolio optimisation and improving performance in North America".
"This will allow us to refocus our North American strategy on those businesses which hold more meaningful market position, relevance and scale," he said.
The source: ASX announcement
