Australia’s QBE Posts Profit Gains for 1st Half

Helped by recent acquisitions, QBE Insurance, Australia’s second largest general insurer after NRMA, posted a strong 56 percent gain in interim net profits to A$122 million (U.S.$64.4 million) for the first half of the year.

QBE became one of the largest insurers in the Lloyd’s market by acquiring Limit plc, and also took over a lot of business from HIH, following its collapse in March. Gross written premiums reached nearly U.S. $1.6 billion, a 60 percent increase, while loss ratios remained steady at around 102 percent.

The fact that QBE was able to do so well in a difficult year bodes well for the future, especially in the Lloyd’s market where rates are generally expected to increase. The company remains on target to achieve a full year result in excess of U.S.$ 130 million.