QBE’s profits surge in 2024 as underwriting performance tracks ahead of plan

Australian insurer QBE has revealed a 2024 net profit after tax of $1.779 billion, up from $1.355 billion in 2023, while its combined operating ratio improved to 93.1% from 95.2%, driven by favourable catastrophe experience and more stable central estimate reserves.

According to QBE, underwriting profitability tracked ahead of the firm’s plan in 2024, and reportedly continues to demonstrate greater resilience.

QBE’s 2024 gross written premiums stood at $22.4 billion, up 3% from 2023. This was in line with expectations and supported by group-wide renewal rate increases of 5.5% and targeted new business growth. As per the insurer, growth was impacted by the portfolio exits in North America and Australia Pacific, alongside lower Crop premium.

Excluding Crop, gross written premium growth in 2024 was 5%, and 9% on further excluding these exited portfolios.

Elsewhere, the firm disclosed that the net cost of catastrophe claims in 2024 decreased to $1.048 billion or 5.9% of net insurance revenue, from $1.092 billion or 6.6% in 2023.

The outcome was $232 million below QBE’s 2024 catastrophe allowance of $1.280 billion.

QBE’s adjusted net profit after tax in 2024 increased to $1.729 billion from $1.362 billion in 2023, resulting in an adjusted return on equity of 18.2%.

The insurer also boasted a solid investment portfolio performance in 2024. Total investment income of $1.488 billion equated to a return of 4.9%, up from $1,374 million or 4.7% in 2023. Strong returns were achieved across both core fixed income and risk asset portfolios.

QBE Group CEO, Andrew Horton, commented, “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.

“I am pleased with QBE’s performance in 2024, which reflects our commitment to driving greater consistency and unlocking value through operating as a global enterprise. 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.”

“Our six strategic priorities have been refined in 2025. This year, we have created a new Customer strategic priority with the goal of providing a more customer-centric approach to our product, service, and distribution strategy. Alongside our strong relationships with major trading partners, we aim to build deeper relationships with our customers.”

Shedding light on the impacts of the California wildfires, Horton said, “Our thoughts are with those impacted by the tragic wildfires in California last month. Our teams have been working tirelessly to support our customers and help them recover as quickly as possible.

“We currently expect Group net exposure of ~$200M, which accounts for exposure in certain North America and International insurance portfolios, and within QBE Re.”

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