QBE (ASX:QBE) is raining cash, with profit doubling for the six months to June and the global insurer lifting its interim dividend by more than 60%.
The company attributed the improvement to continued premium renewal rate increases, lower catastrophe costs, and another solid investment performance for the half-year.
Earnings for the six months to June surged to $US802 million, compared to $US400 million in the previous year, while revenue increased by 5% to $US10.44 billion.
Directors declared an interim dividend of 24 Australian cents, up from 14 cents in the first half of 2023.
“We have seen a positive start to the year, highlighted by further improvement in underwriting performance and strong return on equity,” CEO Andrew Horton said in a statement to the ASX on Friday morning.
QBE’s combined operating ratio, a key measure of underwriting profitability, improved to 93.8% from 98.8% in the June half of 2023, when storm and flood claims were high, particularly in Australia and New Zealand’s North Island.
Gross written premium increased by 2% to $US13.05 billion, and net insurance revenue rose to $US8.51 billion from $US7.98 billion the previous year.
The company’s net investment income climbed 105% to $US733 million from $US662 million a year earlier.
QBE reaffirmed full-year guidance for a combined operating ratio of around 93.5%. However, it adjusted its guidance for full-year group constant currency GWP growth to around 3%, from a previous forecast of mid-single-digit growth.
The company’s funds under management, or insurance ‘float’ (similar to Warren Buffett’s Berkshire Hathaway), increased by 1% to $US30.1 billion at the end of June.