Insurance

QBE announces its half-year financial results









Results

H1 2022

H1 2021

Gross written premium

$11.6 billion

$10.2 billion

Gross Earned Premium

$9 billion

$8 billion

Technical result

$1.2 billion

$642 million

Net investment income/(loss)

($840 million)

$58 million

Net profit after income tax

$151 million

$441 million

According to the insurer, the 66% drop in net profit attributable to ordinary shareholders of QBE was due to negative mark-to-market effects on the company’s investment portfolio, the reinsurance transaction excess and excess lines in North America before accident year liabilities, review of Australian pricing promise, as well as unfavorable mismatch in risk-free rates.

Of QBE’s net investment loss in the first six months, $547 million was in policyholder funds; $293 million from shareholder funds.

Lifting the veil on the performance of its investment portfolio, QBE noted: “The result was strongly impacted by unrealized losses associated with the significant increase in bond yields during the period. Adjusting for the impact of changes in fixed income risk-free rates, total investment return was $14 million or 0.1% for the six-month period, down from zero. 7% over the previous period.

“In fixed income, the base return of the portfolio was almost entirely offset by unfavorable credit spreads, and in risk assets, returns on infrastructure and unlisted real estate were more than offset by unfavorable credit spreads. unrealized losses on equities and enhanced fixed income securities.”

The losses, meanwhile, did not prevent the board from declaring an interim dividend of AU9¢ per share. In the first half of 2021, the corresponding amount was AU11¢.

Commenting on the interim figures, Horton said: “Despite the challenging operating environment, QBE demonstrated resilience over the period, with continued positive momentum across the business. We made good early progress against our new strategic priorities, and our outlook for the rest of the year remains positive. »