QBE has announced a FY2023 net profit after tax of US$1.355 billion, compared with US$587 million in FY2022. Adjusted cash profit after tax increased to US$1.362 billion from US$664 million in the prior year, resulting in an adjusted cash return on equity of 16 per cent.
Strong premium growth continued, with gross written premium (GWP) up 10 per cent to US$21.748 billion (Motor and Motor Casualty accounting for 10.5 per cent), supported by group-wide renewal rate increases of 9.7 per cent (FY2022: 7.9 per cent) and targeted new business growth. The combined operating ratio improved to 95.2 per cent from 95.9 per cent in the prior year, the result supported by attractive premium rate increases which remain at or above inflation for most lines.
Net insurance revenue rose 11 per cent to US$16.599 billion, with the Australia Pacific region accounting for 29.4 per cent of that figure.
Asia Pacific gross written premium was US$5.392 billion, an increase of eight per cent. QBE said the operating backdrop remains disciplined in response to heightened inflation, persistent natural catastrophe activity and tighter reinsurance capacity in the region. As a result, revenue momentum continued, reflecting average premium rate increases of 12.5 per cent partially offset by selective portfolio exits.
QBE said that while there are initial signs that claims inflation has begun to ease, it was more persistent than expected across several short-tail classes. The momentum in short-tail premium rate increases, which generally built through 2023, is expected to support underwriting margins in the year ahead.
“Financial performance improved in the period, and QBE is demonstrating greater consistency and resilience. We are pleased with the ongoing progress across our strategic priorities and expect trading conditions to remain favourable in the year ahead,” said Andrew Horton, QBE Group CEO.
QBE said it anticipates 2024 constant currency GWP growth to be in the mid-single digits.