QBE announces 36% rise in operating profits before tax for 2006...
QBE has announced a record operating profit after tax of A$1,483m (£598m) for 2006, up 36% on the previous year.
Diluted earnings per share rose 32% to 173 cents and return on equity was 26.1% compared with 23.9% in 2005. Gross written premium was up 10% to A$10.4bn and net earned premium was also up 10% to A$8.2bn. The combined operating ratio was 85.3% compared with 89.1%.
Insurance profit before tax to net earned premium was ahead of expectation at 21.9% compared with 17.4%.
In light of these results, the directors declared a final dividend of 55 cents per share, 60% franked. This compares with a final dividend of 38 cents for 2005.
Frank O'Halloran, QBE Group chief executive, said: “We have had a superb year with the substantial increase in profitability being assisted by overall average premium rate increases of 6%, a reduction in catastrophe claims and strong cash flow.”
O'Halloran added: “The acquisitions of Praetorian Financial Group, Winterthur US and Seguros Cumbre in recent weeks, once completed, will ensure that we have significant growth in 2007 and 2008.
"These acquisitions together with the many high quality businesses and teams we have around the world give us confidence that we can increase profit after tax by around 20% in 2007.
"Our forecasts are subject to the usual caveats such as large claims not exceeding the significant allowances in our business plans, foreign exchange rates and stable investment markets.”
