QBE Insurance has reported a record 43% profit after tax of...
QBE Insurance has reported a record 43% increase in its profit after tax of $A491m for the half year to 30 June 2005, against $A343m for the same period last year. Profit before tax was up 57% to $A675m.
Diluted earnings per share increased 32% to 59.2 cents per share. The return on average shareholders' funds was 23% compared with 22.1% for the same period last year.
As a result the directors have increased the interim dividend from 24 cents per share to 33 cents per share, 50% franked.
The significant improvement in profit arose from a 13% increase in net earned premium income to $A3.5bn, higher insurance profit margins and improved equity markets.
Group insurance profit before tax was up 30% to $A553m and was 15.8% of net earned premium compared with 13.6% for the same period last year. ustralia, Pacific, Asia, Central Europe, Lloyd's, European company and the Americas operations all improved their insurance profit to net earned premium ratios.
The combined operating ratio was 90.3% compared with 90.5% for the same period last year.
Frank O'Halloran, QBE's chief executive, said: "We are ahead of all our key profit targets at the half year. This gives us confidence that, subject to unforeseen circumstances, the insurance profit to net earned premium ratio will be in the range of 15%-16% for the full year, well above the target of 12.5%-13.5% announced at our AGM in April.”
