Australian insurer announces 18% increase in dividend
QBE has announced that operating profit after tax for the year ending 31 December 2007 was up 30% to Aus$1,925m (£907m).
In the same period, gross written premium was up 20% to Aus$12,406m; insurance profit up 27% to Aus $2,262m. However its combined operating ratio deteriorated slightly from 85.3% to 85.9%.
In view of the results, the directors announced an increase of 18% in the final dividend to 65 cents.
QBE group chief executive Frank O’Halloran said: “Our excellent underwriting, investment and operating results were ahead of our targets. This was despite the substantial appreciation of the Australian dollar, lower overall average premium rates, claims from 21 insured natural catastrophes around the world compared with five last year and volatile investment markets.”
However, O’Halloran added: “The further appreciation of the Australian dollar against the US dollar and sterling has had an adverse impact on our previously anticipated growth for 2008. Excluding any new acquisitions, we now expect net earned premium to grow by close to 10% and our insurance profit to be around 19-20% of net earned premium.”
