QBE Insurance's Statutory Net Profit Soars 31.3% to US$1.78 Billion, Shares Surge 6.8%

February 21, 2025 11:10 AM AEDT | By Team Kalkine Media

QBE Insurance's Statutory Net Profit Soars 31.3% to US$1.78 Billion, Shares Surge 6.8% — Image source: shutterstock

Financial Results Drive Market Optimism

QBE reported a 31.3% increase in statutory net profit after tax (NPAT) to US$1.78 billion, reflecting underwriting performance and improved market conditions.

Gross written premium (GWP) grew 3% to US$22.4 billion, aligning with management expectations. The company attributed this growth to renewal rate increases of 5.5%.

QBE’s combined operating ratio improved to 93.1%, surpassing expectations. This improvement was driven by a favorable catastrophe experience in 2024 and more stable central estimate reserve development.

Total investment income for the year reached $1.49 billion, delivering a 4.9% return.

Dividend Growth and Yield Appeal to Investors

QBE announced a final dividend of 63 Australian cents per share, up 31.3% from last year’s final dividend. The full-year dividend now stands at 87 cents per share, equating to a 50% payout ratio of adjusted NPAT.

With a fully franked dividend yield of 4.1%, QBE remains an attractive option for income-focused investors. The stock is set to trade ex-dividend on 5 March.

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