QBE announces FY21 Result

QBE today announced a FY21 statutory net profit after tax of $750M, compared with a net loss after tax of $1,517M in FY20, reflecting a material turnaround in underwriting profitability.

Adjusted net cash profit after tax was $805M equating to a return on equity of 10.3%. Insurance trading conditions were favourable throughout 2021, supporting our focus on driving further improvement in profitability while also achieving targeted growth.

QBE Group CEO, Andrew Horton, said: “I am pleased with the strong premium growth and significant uplift in underwriting margin. The strong result was achieved despite the heightened level of catastrophes during the year which remain a major issue for the industry.”

“In targeting ongoing premium growth, we will remain vigilant in pricing adequately for an appropriate risk-adjusted return on capital, with claims inflation, catastrophe costs and overall portfolio volatility key areas of ongoing focus.” 

The Board has declared a final dividend of 19 Australian cents per share bringing the FY21 dividend to 30 Australian cents per share, up from 4 Australian cents per share in 2020, and representing a payout of 41% of adjusted cash profit. While recognising QBE’s improving profitability and earnings resilience, the Board has revised the Group’s dividend policy to 40-60% of annual adjusted cash profit from “up to 65% of adjusted cash profit” previously to retain capital to support our growth ambitions and facilitate the gradual normalisation of our investment asset risk profile

For further information, please read the full ASX statement here.