It’s the turn of QBE Insurance Group to reveal how it fared in the year ended December 31, 2022 (FY22).
Publishing its full-year financial results on Friday, the Sydney-headquartered global insurer reported an increase in net profit after income tax, from US$750 million in FY21 to FY22’s US$770 million. The group’s adjusted cash profit after tax grew from US$805 million previously to US$847 million this time around.
Gross written premium (GWP) in the period amounted to US$20 billion, which is higher than the US$18.5 billion GWP posted for FY21. All three QBE divisions – North America, international, and Australia Pacific – contributed increases in GWP.
“In a backdrop underscored by heightened inflation, geopolitical tensions, and elevated catastrophe activity, QBE’s underwriting performance demonstrated improved resilience, with the adjusted combined operating ratio of 93.7% improving by 1.3% compared to the prior period,” noted QBE in its announcement.
“Strong premium growth continued, with group-wide renewal rate increases of 7.9% in FY22, which supported gross written premium growth of 13%.”
In its earnings report, QBE also announced a reinsurance deal with Enstar. De-risking QBE’s exposure to reserves worth US$1.9 billion, the transaction is designed to support improved capital efficiency and reduced reserve volatility risk while providing “greater bandwidth” to focus on customer outcomes and sustainable growth.
Separately, in an emailed release, Enstar said: “Enstar’s subsidiaries will assume net loss reserves from QBE of US$1.9 billion and will provide approximately US$900 million of cover in excess of the ceded reserves on business largely underwritten between 2010 and 2018.
“The transaction will complete upon receipt of regulatory approvals and satisfaction of various other closing conditions. Upon completion, a portion of the portfolio currently underwritten via QBE’s Lloyd’s syndicates 386 and 2999 will be transferred into Enstar syndicate 2008.”
QBE highlighted that capital released from the loss portfolio transfer will be reallocated to ultimately support an improved outlook for returns.
