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Member, Beacon International Group, Ltd.
QBE Insurance Group Ltd. reported higher profits for the first half of 2015 as it completed the sale of several business units.
The Sydney-based insurer, reporting in U.S. dollars, reported a first-half profit of $488 million on Tuesday, a 24.5% increase over the same period last year.
Gross written premiums increased 2.4% to $8.69 billion.
The insurer reported a combined operating ratio — which is similar to a U.S. combined ratio — of 95.3%, a slight improvement from the 96.5% it reported for the first half of 2014.
In a conference call with analysts, CEO John Neal said QBE is on track to report its best full year combined operating ratio in five years.
QBE, which is Australia’s largest insurer by premiums, reported net earned premiums of $6.23 billion for the first half of 2015, a 10.3% decrease compared with the same period last year.
“That’s largely a result of increased quota share reinsurance that we purchased, notably for (the) U.S. crop portfolio, and the introduction of the aggregate reinsurance treaties, all of which have an impact on net earned premium but contribute strongly to improved profitability,” Mr. Neal said in the call.
QBE has sold several business units over the past year.
In February 2015, QBE announced the sale of its workers comp business in Argentina to WST S.A., a company wholly owned by Buenos Aires-based Grupo Werthein, for $95 million. The sale was completed on Aug. 10.
Also during the first half of 2015 a few noncore businesses were disposed of, generating gains of $140 million, QBE said in a statement. Other nonmaterial disposals generated gains of $10 million.
The Insurance Council of Australia has declared the recent storm in the country as the fifth catastrophe event for 2015, reported Artemis.bm.