24 February 2016 Insurance

QBE profits boosted slightly by North American operations

QBE, the specialist commercial re/insurer, has reported slight increase to its profits in 2015, up 1 percent to A$807 million ($578.9 million), compared with 2014 results.

The firm has attributed this growth to the improvement in the performance of its North American operations.

QBE’S combined operating ratio also slightly improved to 94 percent last year, compared with 94.8 percent in the previous year.  However its gross written premium (GWP) was down by 7 percent however, to $14.782 billion in 2015.

The group is targeting GWP of between $14.2 billion and $14.6 billion in 2016, as well as a combined operating ration of between 94-95 percent.

John Neal, group chief executive officer, QBE, said: “I am pleased to report we have executed on the targets we set at the beginning of 2015, delivering an underwriting result at the better end and an insurance profit margin towards the middle of our target ranges.

“The success of our portfolio remediation activities of the last three years is evidenced by each of our businesses now producing an underwriting profit and, particularly, by the continuing improvement in the performance of our North American operations.

“Our ongoing focus on operational excellence, coupled with a return to organic premium growth, should translate into meaningful margin improvement, positioning us well for earnings and dividend growth over the medium to long term.

“Reflecting the significant progress made over the past 12 months, the strength of our balance sheet and confidence in our outlook, the Board has approved a 36 percent increase in the final dividend to 30 Australian cents per share.”

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