QBE Insurance Group Limited has published its interim results for the half year ended June 30 (1H21), and the Sydney-headquartered global insurer is the bearer of good news.
From 1H20’s $712 million net loss after tax, the group bounced back to a statutory net profit after tax of $441 million this time around. QBE attributed the result to a “material turnaround” in both underwriting and investment returns.
The company’s underwriting profit stood at $642 million. In the same six-month span last year, QBE suffered an underwriting loss worth $524 million. Net investment income, meanwhile, amounted to $58 million – also a leap from 2020’s $90 million loss. Gross written premium posted growth, as well, to $10.2 billion.
“Notwithstanding the heightened level of catastrophes during the half, which remain a major issue for the industry, I am very pleased with the improvement in the underwriting result and the strong but targeted premium growth,” commented interim group chief executive Richard Pryce.
“While we continue to benefit from meaningful compound premium rate increases in all our geographies, there are signs that pricing momentum is moderating, particularly in international markets. Regardless, we will remain vigilant in balancing premium growth and pricing adequacy for an appropriate risk-adjusted return on capital, with claims inflation and catastrophe costs key areas of ongoing focus.”
Meanwhile, the QBE board declared an interim dividend of AU11¢ per share, which is higher than the 2020 interim dividend of AU4¢.