Rising Catastrophes and Costs Tested QBE, But Profit and Dividends Soar

Strong Financial Performance Amid Global Challenges

QBE Insurance Group has delivered a standout financial performance for 2024, with net profit after tax soaring 31% to $1.779 billion. This result underscores the insurer's successful execution of its strategic priorities despite a year marked by significant natural catastrophes and geopolitical uncertainties. The combined operating ratio (COR) improved to 93.1%, beating the company’s target and signaling enhanced underwriting discipline and portfolio resilience.

The company declared a final dividend of 63 Australian cents per share, bringing the total dividend for the year to 87 cents, the highest payout during the current board’s tenure. This reflects QBE’s strong capital position and confidence in sustaining shareholder returns while supporting future growth.

Strategic Priorities Driving Consistency and Growth

QBE’s leadership highlighted the ongoing transformation of the business through six strategic priorities, including portfolio optimisation, sustainable growth, modernisation, and a renewed customer-centric approach. The insurer is actively managing its portfolio to balance growth with profitability and resilience, simplifying operations, and investing heavily in AI and digital technologies to enhance underwriting and claims processes.

Notably, QBE has embraced AI-driven underwriting tools, which have begun delivering efficiency gains and improved risk assessment. The company also continues to modernise its technology infrastructure, aiming to make it easier for customers and brokers to engage with its products and services.

Sustainability and Social Commitments

Beyond financial metrics, QBE reaffirmed its commitment to sustainability and social responsibility. The insurer is advancing its climate transition plan in line with new Australian sustainability reporting standards and has been recognised globally for gender equality, ranking 4th worldwide in Equileap’s Top 100. The company’s Foundation and community initiatives focus on building resilience in vulnerable communities, particularly in the face of increasing weather-related disasters.

QBE also called for a whole-of-community approach to risk mitigation, advocating for government reforms such as reviewing the Emergency Services Levy, which currently adds significant costs to insurance premiums. The company emphasised that improving affordability sustainably requires reducing underlying risks rather than simply shifting costs.

Outlook and Market Conditions for 2025

Looking ahead, QBE expects gross written premium growth in the mid-single digits on a constant currency basis, despite a $250 million drag from non-core portfolio exits in North America. The company reiterated its 2025 combined operating ratio guidance of around 92.5%, reflecting confidence in underwriting discipline and catastrophe cost management.

Early 2025 has seen continued catastrophe activity, including wildfires in California and severe flooding in Australia, but QBE’s catastrophe claims remain within allowance. Investment income remains solid, supported by favourable interest rates, though market volatility has increased. The insurer’s conservative portfolio positioning aims to mitigate these risks.

Leadership changes were also announced, with the retirement of long-serving director Rolf Tolle and the appointment of Neil Maidment, bringing extensive global insurance and reinsurance experience to the board.

A Resilient Insurer Poised for Long-Term Success

QBE’s 2024 results and strategic progress paint a picture of a company evolving into a more unified, agile, and customer-focused insurer. Its ability to navigate a complex risk environment while delivering consistent profitability and investing in innovation positions it well for the challenges ahead. The company’s emphasis on sustainability and community resilience further strengthens its role as a vital economic enabler.