QBE profits increase 30%

by David Masters

Story link: QBE profits increase 30%

Australian insurer QBE has reported an increase of 30% in 2007 operating profit after tax, at Aus$1,925 million (£907 million).

Gross written premiums during 2007 increased by 20% to Aus$12,406 million. Insurance profit rose 27% to Aus$2,262 million. The company’s combined operating ratio also increased slightly, from 85.3% to 85.9%.

Because of ‘excellent’ results, QBE’s directors announced an 18% increase in the final dividends, up to 65 cents.

Frank O’Halloran, QBE group’s chief executive, said of the results: “Our excellent underwriting, investment and operating results were ahead of our targets.

“This was despite the substantial appreciation of the Australian dollar, lower overall average premium rates, claims from 21 insured natural catastrophes around the world compared with five last year and volatile investment markets.”

However, O’Halloran added that 2008 isn’t yet going as well as he had hoped: “The further appreciation of the Australian dollar against the US dollar and sterling has had an adverse impact on our previously anticipated growth for 2008.

“Excluding any new acquisitions, we now expect net earned premium to grow by close to 10% and our insurance profit to be around 19-20% of net earned premium.”