QBE reports strong premium growth, up 10% YoY

The group’s performance was partially offset by short-tail prior-year development.

QBE's profit after tax more than doubled to $1.36b in 2023 from the $587m the previous year.

Premium growth remained strong, with gross written premium increasing by 10% year-on-year (YoY) driven by group-wide renewal rate hikes of 9.7% and targeted new business growth. 

The combined operating ratio improved to 95.2%, or 94.6% excluding upfront costs of a $1.9b reserve transaction completed in the first half. 

Favourable market conditions and current-year catastrophe experience supported these results, partially offset by short-tail prior-year development.

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QBE's regulatory Prescribed Capital Amount (PCA) multiple improved to 1.82x from 1.79x at the end of 2022, remaining at the upper end of the group's target range of 1.6-1.8x. 

The board declared a final dividend of 48 Australian cents per share, up from 30 Australian cents per share in 2022. On top of that, basic earnings per share was 91.4 US cents, higher than the 44.8 US cents in 2022.

The 2023 dividend payout ratio of 45% of adjusted cash profit reflects the group's strong capital position and favourable growth outlook.