QBE Insurance Group (QBE) has bounced back from a US$254 million loss in 2013, to post a US$742 million profit for the year to 2014.
As a result, the insurer, which announced the sale of its troubled Argentinian workers compensation business this morning, has boosted annual dividend to 37 A cents a share, from 32 cents, with a higher final of 22 A cents (12 A cents).
The $1 billion turnaround came off the back of a significant improvement in its North American arm (where it has sold its agencies business), as well as the absence of impairments related to the North American business that were present a year earlier.
Revenue from ordinary activities in the period fell 6% to $US18.226 billion.
QBE revealed last week that it had also sold its Australian agencies business.
But QBE warned the rising value of the US dollar will impact results in 2016.
The group said it expects global insurance pricing will remain broadly flat in 2015.
“Accordingly, our focus will be on maintaining underwriting discipline, exercising strict control on cost management and leveraging greater value from our substantial investment portfolio,” QBE said in this morning’s statement.
The company forecast 2015 gross written premium (GWP of $US15.5 billion to $US15.9 billion and an insurance profit margin of 8.5% to 10% (against the 7.6% reported for 2014).
GWP was $US16.3 billion last year.
QBE strengthened its balance sheet while profits missed estimates
