SYDNEY, Feb. 24 --MediaNet-International-AsiaNet/InfoQuest
The directors of QBE Insurance Group today announced a record operating
profit after tax of $820 million for the year ended 31 December 2004, up 43% on
last year. Pre-tax profit was up 41% to $1,080 million. Fully-diluted
earnings per share increased 35% to 104.5cents and the return on average
shareholders’ funds was 21.2% compared with 18.3%.
Insurance profit before tax increased 45% to $908 million, despite net
claims from large catastrophes of $320 million compared with $27 million in
2003. Insurance profit to net earned premium was 13.4% compared with 10.4%.
Cash flow from operations was again strong at $2,110 million compared with
$2,089 million.
Gross earned premium was up 10% to $8,571 million and net earned premium
increased 12% to $6,781 million. The impact of the stronger Australian dollar
on premium growth was significant. Using 2003 rates of exchange, gross and net
earned premium would have increased 16% and 17% respectively.
In recognition of the strong operating performance, the directors have
declared a 36% increase in the final 2004 dividend from 22.0 cents per share
last year to 30.0 cents per share. The dividend will be 50% franked. Books
close for the final dividend on 7 March 2005 and the dividend reinvestment
plans continue at a discount rate of 2.5%.
Mr Frank O’Halloran, QBE’s Chief Executive Officer, said “We have exceeded
our main financial targets for 2004 in all our insurance divisions,
outperforming our overall investment benchmarks with a low-risk investment
strategy.”
QBE has upgraded its expectations for the insurance margin for 2005 from
the previously announced range of 12%-13% to 12.5%-13.5% of net-earned premium.
Mr O’Halloran added “acquisition activity during 2004 added over $1.5
billion in annualised gross premium, of which $0.7 billion was written in
2004. This underpins the Group’s 2005 growth targets of a 10% increase in
gross written premium to $9.6 billion and a 12.5% increase in net earned
premium to $7.6 billion. Even though overall premium rates were slightly less
than our expectations for the major renewal season of 1 January 2005, the
quality and diversification of our insurance businesses around the world and
the strength of our liabilities for outstanding claims and unearned premiums
give us confidence that, subject to the usual caveats, we can increase our
profit after tax by more than 10% in 2005.”
SOURCE: QBE Insurance
CONTACT: Fay Walker +61-401-521-030
http://www.qbe.com
--Distributed by AsiaNet (www.asianetnews.net)--