QBE Insurance Group Limited (ASX:QBE) Announces FY24 Results
Financial Performance
QBE Insurance Group Limited reported a statutory net profit after tax of $1,779 million for FY24, up from $1,355 million in FY23. Adjusted net profit after tax also increased to $1,729 million from $1,362 million, achieving an adjusted return on equity of 18.2%. The company experienced a 3% growth in gross written premium, supported by a 5.5% increase in renewal rates and targeted new business growth. The combined operating ratio improved to 93.1%, outperforming the previous year’s 95.2%. Total investment income rose to $1,488 million, delivering a return of 4.9%.
Capital Management
QBE’s indicative regulatory Prescribed Capital Amount (PCA) multiple increased to 1.86x from 1.82x as of 31 December 2024, maintaining a comfortable position within the target range of 1.6-1.8x. The Board declared a final dividend of 63 Australian cents per share, resulting in a full-year dividend of 87 cents per share and a payout ratio of 50% of adjusted net profit after tax.
Executive Comments
Group CEO Andrew Horton stated, “Financial performance in 2024 was encouraging, improved on the prior period in most aspects and tracked ahead of our plan for the year. Numerous initiatives to reduce volatility and build resilience are now supporting stronger and more predictable performance.” He further added, “I am pleased with QBE’s performance in 2024, which reflects our commitment to driving greater consistency, and unlocking value through operating as a global enterprise. We made meaningful progress against our strategic priorities and it has been particularly exciting to see the business transition from a focus on historic challenges, to concentrating on the opportunities ahead.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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