(Reuters) -Australian insurer QBE beat market estimates for interim earnings on Friday, helped by strong premium growth in North America and international divisions coupled with claims being limited.
The company said its catastrophe costs stayed below its allowance despite high industry losses from severe U.S. and Australian weather, including floods in the Mid-North Coast and in the Hunter regions onshore in May.
The group paid out $479 million in catastrophe-related claims, lower than $527 million forked out in the prior corresponding period and “comfortably below” its first-half catastrophe allowance of $549 million.
The group, which operates in 27 countries including the United States, said its gross written premiums grew 5.9% to $13.82 billion for the first half of fiscal 2025.
The insurer added that growth continued, fuelled by targeted expansion in select insurance classes in North America and internationally, and aided by reduced costs after exiting weaker lines.
QBE posted adjusted net profit after income tax of $997 million for the six months ending June 30, compared with $777 million a year earlier, beating LSEG estimate of $839.39 million.
The Sydney-based insurer also declared an interim dividend of 31 Australian cents per share, up from 24 Australian cents a year ago.
The company reported a combined operating ratio of 92.8%, compared with 93.8% a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.
QBE reiterated its forecast for constant currency gross written premiums growth in mid-single digits for financial year 2025.
(Reporting by Shivangi Lahiri and Rajasik Mukherjee in Bengaluru; Editing by Tasim Zahid and Alan Barona)
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