By Rebecca Delaney

Feb 21 - (The Insurer) - QBE on Friday reported a combined ratio of 93.1% for 2024, a year-on-year improvement of 2.1 percentage points driven by favourable catastrophe experience and more stable central estimate reserve development.

The net cost of catastrophe claims decreased to $1.05 billion (or 5.9% of net insurance revenue), from $1.09 billion (6.6%) in 2023. The largest impact was recorded in the Australia Pacific segment, where the net cost of cat claims accounted for 7.5% of net insurance revenue, with North America and international at 4.6% and 5.7%, respectively.

The outcome was $232 million below the group’s 2024 catastrophe allowance of $1.28 billion.

QBE disclosed that it currently expects group net exposure of around $200 million from the January 2025 California wildfires, which relates to exposure in certain North America and international insurance portfolios, as well as within QBE Re.

Prior accident year claims development of $424 million included a $21 million strengthening of the central estimate of net outstanding claims, compared with adverse development of $225 million in 2023.

Overall, the group posted statutory net profit after tax of $1.78 billion for 2024, up 31% from $1.36 billion the previous year, while adjusted net profit after tax increased to $1.73 billion.

Net insurance revenue stood at $17.81 billion, while gross written premium growth of 3.0% to $22.40 billion was in line with expectations.

QBE said that GWP growth was impacted by portfolio exits in the North America and Australia Pacific segments, as well as lower crop premium. Excluding crop, GWP growth was 5.0%, or 9.0% when excluding exited portfolios.

The group achieved an average renewal premium rate increase of 5.5%, compared with 9.7% in the prior year, reflecting moderation in certain property lines alongside a backdrop of strong rate adequacy and lower claims inflation.

The Australia Pacific segment reported an average renewal premium rate increase of 8.4%, followed by 7.3% in North America and 3.7% in the international business.

QBE also reported total investment income of $1.49 billion, equating to a return of 4.9%. The board declared a final dividend of A$0.63 per share, resulting in a full-year dividend of A$0.87 per share.

Group CEO Andrew Horton said: “2024 marked the third year since we launched our new purpose, vision and strategic priorities, and our financial performance for the period speaks to the considerable progress we have achieved. We beat our plan for the year, continue to demonstrate greater resilience and are excited about our prospects for the year ahead.”

He continued: “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.”

For 2025, QBE is targeting constant currency GWP growth in the mid‑single digits, with a combined operating ratio of around 92.5%.