The QBE Insurance Group Ltd (ASX: QBE) share price is charging today.
Shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant closed yesterday trading for $20.07. In morning trade on Friday, shares are swapping hands for $21.44 apiece, up 6.8%.
Today's strong performance follows the release of QBE's full-year 2024 financial results.
Here are the highlights.
QBE share price leaps higher on profit surge
The QBE share price is in the green after the company reported a 31.3% year on year increase in statutory net profit after tax (NPAT) of US$1.78 billion.
Gross written premium growth came in at US$22.4 billion, up 3% for 2023. Management said this was in line with expectations and supported by renewal rate increases of 5.5%.
QBE's combined operating ratio improved to 93.1%, beating expectations. The ASX 200 insurers credited the boost to favourable catastrophe experience in 2024 and more stable central estimate reserve development.
Total investment income came in at $1.49 billion. That works out to a return of 4.9%.
And QBE pleased passive income investors with a final dividend of 63 Aussie cents per share. That's up 31.3% from last year's final dividend. And it brings the full-year passive income payout to 87 Aussie cents per share. That equates to a full-year dividend payout ratio of 50% of adjusted NPAT.
The ASX 200 insurance stock now trades on a fully franked dividend yield (part trailing, part pending) of 4.1%. The stock trades ex-dividend on 5 March.
What did management say?
Commenting on the results helping boost the QBE share price today, CEO Andrew Horton said:
Financial performance in 2024 was encouraging, improved on the prior period in most aspects and tracked ahead of our plan for the year. Numerous initiatives to reduce volatility and build resilience are now supporting stronger and more predictable performance…
Our six strategic priorities have been refined in 2025. This year we have created a new customer strategic priority, with the goal of providing a more customer centric approach to our product, service and distribution strategy.
Addressing the massive wildfires that struck southern California in the United States, he added:
Our teams have been working tirelessly to support our customers and help them recover as quickly as possible. We currently expect group net exposure of around $200 million, which accounts for exposure in certain North America and International insurance portfolios, and within QBE Re.
What's next for the ASX 200 insurance share?
Looking at what could impact the QBE share price in the year ahead, the insurer said it expects gross written premium growth in the mid‑single digits in 2025.
The company's combined operating ratio is forecast to be around 92.5%, with investment returns expected to reflect the FY 2024 exit core fixed income yield of 4.3%.
QBE share price snapshot
With today's intraday moves factored in, the QBE share price is up 28% in a year, not including dividends.
