A welcome lack of bad news or write-downs at yesterday’s annual meeting of global insurer QBE in Sydney.
The insurer instead had good news for shareholders saying that it is on track to hit its guidance on financial performance this year, with premiums rising and investment returns in line with expectations.
CEO Pat Regan told shareholders that at the end of the first quarter, QBE was “well on track” to deliver a combined operating ratio, which measures claims and costs as a share of premium revenue, of 94.5% to 96.5%, in line with previous guidance.
He also said investment returns were hitting the company’s target of 3% to 3.5% for the year.
Mr. Regan also said its plans to cut costs were on track.
“I am pleased with the progress we made in 2018 and the solid start we have made to 2019,” Mr. Regan said.
“With our simplified structure and our relentless focus on performance across the business, I am confident that we will continue to deliver value for shareholders in 2019 and beyond.”
That means QBE has started a new financial year (it balances at the end of December) with a clean sheet so far as bad news is concerned.
Mr. Regan has overseen a rationalisation of the group’s operations and deep cost-cutting and business sales after a series of profit downgrades in recent years.
Also helping has been the absence of major natural disasters in Australia and around the world in recent months.
QBE shares jumped half a percent to $12.84.
