QBE announces 2020 full year results
QBE today announced a statutory net loss after tax of $1,517M1, compared with a net profit after tax of $550M in 2019.
Interim QBE Group CEO, Richard Pryce, said: “While obviously very disappointed with the headline loss, premium momentum accelerated across 2020 and has continued into 2021. Coupled with the improved positioning of the underlying business, we enter this year with confidence and optimism.
I look forward to leading the business in 2021; my primary focus remains performance improvement including that the Group takes full advantage of currently favourable market conditions by maximising premium rate increases while driving targeted growth in portfolios and regions offering the most profitable new business opportunities.”
The headline result includes a disappointing underwriting result, a significant reduction in investment income, impairment of goodwill and deferred tax assets in North America and charges related to rationalisation of legacy IT platforms and our real estate footprint.
The adjusted net cash loss after tax was $863M, which compares with an adjusted net cash profit after tax of $733M in the prior year.
Premium rates continued to harden. Group-wide premium renewal rate increases averaged 9.8%2 compared with 6.3%2,3, in 2019. Premium rate momentum accelerated through the year in International and North America, while momentum in Australia Pacific recovered in the fourth quarter as pandemic-related pricing relief initiatives ended. Group-wide renewal rate increases averaged 11.3%2 during 2H20 and 12.6%2 in 4Q20.
On a constant currency basis and adjusting for disposals, gross written premium grew by 10% to $14,643M reflecting premium rate momentum, improved premium retention across all divisions and strong new business growth, particularly in North America and International.
For further information, you can read the Market Release on FY20 Results or download the 2020 Results Presentation.
1All figures in US$ unless otherwise stated
2Excludes premium rate changes relating to North America Crop and Australian compulsory third party (CTP)
3Continuing operations basis