QBE Insurance Group Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$63.00 | Ksccc | Wfwgqbjm |
QBE Insurance Earnings: Strong Result but Signs Rate Increases Are Moderating
QBE Insurance’s first-half 2024 net profit almost doubled to USD 777 million, benefiting from an average premium rate increase of 6.7% and material improvement in the claims ratio to 64% from 69%. Most of the improvement in the claims ratio was due to lower catastrophe claims. While QBE has progressively made changes to the portfolio to manage exposures, both lifting rates and exiting historically problematic insurance lines, investors should not be complacent this is the new norm. Volatility is to be expected. Investment income increased 10%, which practically all flows through to the bottom line.