QBE Insurance Group (ASX: $QBE) 1H24 Results Overview

QBE Insurance Group (ASX: $QBE) has announced its 2024 half-year results, reporting a 1H24 statutory net profit after tax of $802 million, compared with $400 million in 1H23. The adjusted net profit after tax increased to $777 million from $405 million in the prior period, resulting in an adjusted return on equity of 16.9%, compared to 10.1% in the prior period. The gross written premium increased by 2%, reflecting Group-wide renewal rate increases of 6.7% and targeted organic growth, partially offset by the impact from portfolio exits and lower Crop premium. The combined operating ratio improved to 93.8% from 98.8% in the prior period, driven by lower catastrophe costs and more stable reserve development. QBE has also announced important reserve transactions which will de-risk $1.6 billion in reserves, and reduce risk associated with the run-off of North America non-core lines.

Executive Commentary on 1H24 Results

We have seen a positive start to the year, highlighted by further improvement in underwriting performance and strong return on equity. We have taken further steps to reduce volatility and ensure better performance in North America, and remain excited about the outlook for our business. - Andrew Horton Group CEO

Summary of 1H24 Results and Outlook

QBE Insurance Group (ASX: $QBE) has reported a strong 1H24 performance with a significant increase in net profit after tax and improved underwriting performance. The company has taken steps to reduce volatility and ensure better performance in North America, and remains excited about the outlook for its business. QBE's indicative regulatory Prescribed Capital Amount (PCA) multiple reduced to 1.77x from 1.82x at 31 December 2023, and the Board has declared an interim dividend of 24 Australian cents per share, representing a payout ratio of 31% of adjusted net profit. Looking ahead, QBE aims for gross written premium growth of ~3%, a combined operating ratio of ~93.5%, and investment returns with an exit running yield of 4.7% for the full year 2024.