(Reuters) – Australia’s QBE Insurance Group’s full-year profit more than doubled on Friday, helped by higher income from premiums and lower claims.
Improved weather conditions in the second-half of the year reduced catastrophe-related costs for the insurer, while gross written premiums on a headline basis rose 9% to $21.75 billion for the year, supported by higher premium rates as well as targeted new business growth.
The group, which operates in 27 countries including the United States, said adjusted net cash profit after income tax was $1.36 billion for the year ended Dec. 31, compared with $664 million a year earlier and an LSEG estimate of $1.40 billion.
The company also announced a final dividend of 48 Australian cents per share, up from 30 Australian cents per share declared a year ago.
For the year, strong returns on fixed income assets amid higher interest rates boosted net investment income to $1.37 billion, compared with an investment loss of $773 million in the prior year.
The company reported combined operating ratio (COR) of 95.2%, compared with 95.9% a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.
The company expects gross written premium growth in mid-single digits in fiscal 2024, on a constant currency basis, and said it was targeting a COR of about 93.5%.
(Reporting by Echha Jain and Ayushman Ojha in Bengaluru; Editing by Shinjini Ganguli and Anil D’Silva)
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