Superstorm Sandy and US drought affect underwriting profits
QBE made a net profit after tax of $761m (£509m), up 8% from the $704m (£464m) it recorded last year.
The Australian insurer’s combined operating ratio increased by 0.3 percentage points to 97.1%, compared to 96.8% in 2011.
The insurer reported a “disappointing” underwriting result, having been affected by the US drought and Superstorm Sandy. Gross written premium growth was modest, up 1% to $18.4bn (£12.1bn)
However, the company’s operating profit was up 16% to $1,262m (£832m) from $1,085m (£715m) in 2011, held up by strong investment returns with a net yield of 4.1% compared to 2.9% in 2011.
The company’s investment portfolio grew to $31.5bn (£20.8bn) from S$28bn (£18.5bn) in 2011.
QBE Group chief executive John Neal said: “Adverse prior accident year claims development, primarily in the US, marred an otherwise solid 2012 performance for QBE. Today, we are announcing expectations of a much improved performance in 2013, a stronger balance sheet, initiatives that will improve performance in the medium term and a number of significant executive management changes.”
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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