QBE earnings disappoint, shares slump
QBE Insurance Group Limited (QBE) posted a modest 6% increase in net profit to $1.97 billion for the year ended 31 December 2009. QBE said that the strengthening Aussie dollar and continued low interest rates had adversely impacted the company’s reported profit, and would continue to do so.
The result disappointed investors with the share price slumping 7.2% to $21.34.
However, QBE CEO Francis O’Halloran still struck an upbeat, if cautious tone.
”The 2009 result was an excellent achievement considering the difficult economic conditions,” Mr O’Halloran said. ”We are confident about our prospects for maintaining our underlying underwriting profit.”
While saying that organic growth would remain low due to subdued prices and competition the insurer would aim to increase its customer retention and increase premiums by an average of 2%.
Meanwhile, QBE said it expected 3% growth in Gross Written Premiums (“GWP”).
Looking at its earnings figures, QBE’s net earned premium, climbed 10% to $12.15 billion from $11.09 billion.
The board declared a final dividend of 66c cents a share, up from 65c ccents a year earlier.
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