QBE rides low-claim wave to profit record
Strong investment returns, declining claims and premium rises have set up another bumper result for QBE, which has reported a 36% increase in net profit for the full year.
Australia’s largest property and casualty insurer chalked up a record operating profit after tax of $1.48 billion, or diluted earnings per share of $1.73, for the year ended December 31.
Despite overall revenue falling 2%, QBE had a stronger second half in 2006, recording a net profit of $892 million – an increase of 49% on the previous quarter.
Gross written premiums rose 10% to $10.4 billion, or more than double the 2000 figure. The combined operating ratio – a measure of claims, commissions and expenses against net earned premium – fell to 85.3%.
Most of the company’s growth was channelled from overseas interests, with gross earned premiums rising 9% in its European branch and Lloyd’s division, and 31% in its Americas businesses.
The company’s end-of-year financials were below analysts’ predictions of $900 million. However it made several acquisitions in the US, Denmark and Sweden last year.
Recent purchases included Praetorian Financial Group in December and the US arm of Winterthur for $1.16 billion last month.
QBE CEO Frank Halloran expects the new acquisitions to have a substantial effect on profit in 2007.
Australia’s largest property and casualty insurer chalked up a record operating profit after tax of $1.48 billion, or diluted earnings per share of $1.73, for the year ended December 31.
Despite overall revenue falling 2%, QBE had a stronger second half in 2006, recording a net profit of $892 million – an increase of 49% on the previous quarter.
Gross written premiums rose 10% to $10.4 billion, or more than double the 2000 figure. The combined operating ratio – a measure of claims, commissions and expenses against net earned premium – fell to 85.3%.
Most of the company’s growth was channelled from overseas interests, with gross earned premiums rising 9% in its European branch and Lloyd’s division, and 31% in its Americas businesses.
The company’s end-of-year financials were below analysts’ predictions of $900 million. However it made several acquisitions in the US, Denmark and Sweden last year.
Recent purchases included Praetorian Financial Group in December and the US arm of Winterthur for $1.16 billion last month.
QBE CEO Frank Halloran expects the new acquisitions to have a substantial effect on profit in 2007.