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.”
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