QBE doubles net profit in first quarter

QBE Insurance Group has published its interim financial results, showing a doubling of net profit after income tax for the first six months of 2024.

According to QBE, its consolidated operating margin improved “meaningfully” due to lower disaster costs, improved stable reserves, and a supportive premium rate increase.

Along with the results, the group also disclosed reserve transactions with RiverStone International and Enstar aimed at removing US$1.6 billion in reserves while reducing the risk associated with the launch of non-essential lines in North America.

Commenting on QBE's progress, group chief executive Andrew Horton (pictured) said: “We have delivered a series of key initiatives during this period to support sustainability and consistency. The condition and health of our writing portfolio has improved significantly in recent years, and as a result, our priorities are more focused on the future.

“We have announced our decision to begin the systematic closing of the middle market in North America, which supports our continued focus on portfolio building and operational improvement in North America. This will allow us to refocus our North American strategy on those businesses that have the right market position, relevance, and scale.

“I'm excited about the improved organization and communication across the company. Our people are still very much involved, and we are building an efficient, purpose-led organization.”

The CEO added that they remain happy with the way the business is looking, having seen a “good start to the year” thanks to improved underwriting performance and strong return on equity.

QBE's board has declared an interim dividend of 24 Australian cents per share to be paid in September.

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