QBE jumps on better-than-expected results
Make us a preferred source
Make us a preferred source on Google
More news: Shares in QBE jumped more than 7% to $21.53 in early trading on the ASX after the insurance giant posted full-year profit and final dividend ahead of expectations. Statutory profit jumped 31% to US$1.78 billion ($2.78 billion), and the company will pay a final dividend 63 US cents a share, ahead of analyst expectations of 57 US cents.
QBE lifts profit and dividends on higher premiums, investments
The news: Insurance giant QBE has lifted its full-year profit and dividend ahead of expectations on the back of premium growth and higher investment income.
The numbers: Statutory profit jumped 31% to USD1.78 billion ($2.78 billion), ahead of a Visible Alpha average estimate of USD1.72 billion. Revenue was up 5% to USD21.78 billion and the company will pay a final dividend 63 US cents a share, also ahead of analyst expectations of 57 US cents.
The context: The insurer reported a 3% increase in gross premiums across the full year, backed by a 5.5% rate increase.
That was down from last year’s 9.7% increase, which the company attributed to "moderation in certain property lines." In Australia, however, premiums rose 8.4%—the highest increase among its disclosed markets.
QBE, which operates in 27 countries, reported lower catastrophic claims for the year despite the impact of natural hazards and catastrophes. This included a net exposure of USD200 million from the California wildfires.
Its investment income also rose to USD1.49 billion, with strong returns across both its fixed income and risk asset portfolios.
The company now expects premiums to rise in mid-single digits in 2025, while investment income returns are expected to stay strong at the current level of 4.3%.
The source: ASX
