Qbe Insurance Group Limited · ASX:QBE
Qbe Insurance — FY2024 Earnings Presentation
24 slides from Qbe Insurance's earnings presentation, Feb 22, 2025
Slide 1: 2024 Result
a use onl @OBE 2024 Result 21 February 2025 QBE INSURANCE GROUP LIMITED Enabling amore resilient future — Te a 3
Slide 2: Disclaimer and important notices
no material change to key inflation and economic growth forecasts; in each case, materially from the expectations described in this presentation. Should one or more of these assumptions prove This presentation contains general background information about the Group’s activities current incorrect, ac
Slide 3: 2024 result key metrics
rsonal use only 9.7% 95.2% 7.9% 95.9% 1,729 175 87 1,362 138 62 664 65 39 18.2 1.82 1.86 11.5 15.8 1.79 9.8 8.8 8.3
Slide 4: 2024 result headline highlights
rsonal use only Average rate increase Catastrophe claims Total investment income Capital above S&P ‘AA’ 50% payout ratio +5.5% below allowance of $1,488M level Ex-rate growth Stable prior year 4.3% exit yield Debt to total capital 19.9% 20% franked (0%) development
Slide 5: Enabling a more resilient future
rsonal use only Uniquely positioned international carrier with strong presence and relationships across key markets Launching purpose, vision and With an established track record of strategic priorities consistent performance Portfolio balance and diversification drive stable and predictable underwr
Slide 6: Portfolio optimisation and earnings quality
rsonal use only ~$1.2B 2% Consumer 8% 87% Crop & LMI 82% Much improved earnings quality with 13% Reinsurance 74% greater breadth, diversification and 68% 13% visibility 2% 27% Specialty Profitable 33% Portfolio exits to meaningfully reduce drag from underperforming cells 37% Commercial 28% Unprofita
Slide 7: Returns, combined ratio and outlook
rsonal use only 220 AASB 17 98 impact 10.5 15.8 18.2 10.3 8.3 (83) (232) FY21 FY22 FY23 FY24 54.4 54.4 53.8 53.0 1.4 1.4 0.9 95.0 95.9 95.2 0.1 93.1 ~92.5 FY211 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY25 Outlook Note: 1. FY21 excludes the impact of COVID-19 and the reinsurance loss
Slide 8: Sustainable growth
rsonal use only 10% 6% 6% GWP 8.3 8.6 5% $7.2B 7.5 6.1 5.4 4.3 4.7 2.2 2.6 1.6 1.9 Inclusive of >$1B of portfolio exits FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 21.7 22.4 18.5 20.0 ▪ Deepen core franchises through targeted investment ▪ Build differentiating capability in data and
Slide 9: Capital management and returns
rsonal use only Near term capital flexibility remains key, given profitable growth opportunities and strong financial returns Potential for improved organic capital generation going forward, as Aspiration to deliver sustainable mid-single strain from high inflationary environment moderates Sustainab
Slide 10: Financial performance
Financial performance
Slide 11: Improvement in profitability and underwriting result
Improvement in profitability underscored by more resilient underwriting result and strong investment returns rsonal use only FY23 FY24 Gross written premium $M 21,748 22,395 Net insurance revenue $M 16,599 17,807 Net claims ratio % 65.1 63.2 95.2 93.1 59.1 59.7 4.7 4.9 Net commission ratio % 18.3 17
Slide 12: Organic premium growth across opportunities
Organic growth continues across breadth of opportunities, partially offset by exited property lines and Crop rsonal use only or ~2% excluding property exits or ~13% of ~$200M North America (4) (6) 2 excluding non- core exits of 11% NA (ex-Crop) (2) (7) (4) ~$400M (1%) NA (ex-Crop & Exits) 13 10 17 (
Slide 13: Rate increases, retention and combined ratio
rsonal use only 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 % COR 95.2 93.1 15 10.0% 9.3% 4.9% Expenses 11.8 12.2 12.3% 6.7% 10.9% 6.9% 6.4% 3.0% 10 10 10 66% 64% 67% 68% 68% 68% 8 Commission 18.3 17.7 5.5% 4.2% 2.8% 6 Cat 6.6 5.9 5 6.0% 5.2% 4.4% 4.0% 2.9% 2.7% 84% 85% 88% 88% 88% 87% 13.2% 9.9% 7.0% FY21 FY22 F
Slide 14: Divisional results
rsonal use only COR (%) 103.7 98.9 COR (%) 89.5 88.7 COR (%) 93.6 92.0 Expenses 9.1 9.0 Expenses 11.6 11.3 Expenses 13.9 13.8 Commission 21.6 20.5 Commission 17.9 17.5 Commission 15.7 15.1 Cat 4.9 4.6 Cat 6.6 5.7 Cat 8.4 7.5 Ex-cat 65.7 68.2 59.1 Ex-cat 54.3 55.1 Ex-cat 58.2 PYD 2.4 (3.4) (0.9) (0.9
Slide 15: Go-forward business and non-core performance
Go-forward business has a well-established track record of performance, with attractive growth opportunities rsonal use only Commercial ~$1.1B Non-core other (~220) (~170) (~170) (~260) • Property programs 95% (~60) (~50) 93% 94% 94% • Workers’ compensation programs Middle-market (~80) (~230) (~220)
Slide 16: 2025 reinsurance renewal
2025 reinsurance renewal completed broadly as expected rsonal use only • 2025 reinsurance program remains broadly consistent • Lower catastrophe retentions achieved on account of recent portfolio optimisation initiatives (from $400M to $300M) ~350 ~325 ~300 ~260 ~250 • 2025 catastrophe allowance set
Slide 17: Investment performance
rsonal use only Credit Spread Contribution CFI return (ex-risk-free rate) 1,219 4.6 Weighted Average RFR 5.0% 4.9% 4.7% 18 Feb Credit spreads MTM 63 0.3 4.6% 4.6% 4.2% 4.3% 4.3% Risk assets 295 7.5 Expenses and other (89) (0.3) Corporate bonds Short-term money Growth assets Government bonds Other fi
Slide 18: Capital position
rsonal use only 1.75 1.79 1.82 1.86 PCA 18% 0.15x 1.86x 1.10 1.16 1.23 1.31 CET1 1.82x 16% ~1.77x ~(0.09x) 24.1 23.7 21.8 19.9 FY21 FY22 FY23 FY24 (0.11x) 31.8 31.0 27.9 24.8 FY23 Dividends FY24 Final FY24 FY23 FY24 paid divi- pro dend forma • Strong capitalisation, with continued • Regulatory capit
Slide 19: Outlook
Extending a track record of growth, strong returns and greater resilience rsonal use only • Premium rate increases expected to remain supportive • 2025 constant currency GWP growth • Markets remain conducive to the execution of our growth strategy of around the mid-single digits • Portfolio exits to
Slide 20: rsonal use only
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Slide 21: Financial summary by division
rsonal use only FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Gross written premium $M 21,748 22,395 7,555 7,277 8,802 9,837 5,392 5,281 Ex-cat claims $M (9,808) (10,625) (3,150) (3,336) (3,761) (4,368) (2,843) (2,948) Insurance revenue $M 20,825 21,778 7,529 7,220
Slide 22: QBE international P&C insurer overview
QBE is an international P&C insurer focused on commercial and specialty (re)insurance, organised over three divisions rsonal use only Group Property Casualty Other 4% 5% 24% 18% 12% ~34% ~32% ~34% Commercial Commercial 32% 40% Specialty Specialty 12% 44% Reinsurance Reinsurance 12% North America Cro
Slide 23: Reinsurance program structure
rsonal use only Main Cat XOL 1st layer • $1.6B xs $300M • NA & ANZ Cat Pacific Island buy down 2nd layer • $80M xs $20M • NA & ANZ: $900M xs $1.9B • Partial placement $2,500M xs $300M • ROW: $900M xs $200M NA and ANZ 1 reinstatement $900M xs $200M ROW 1 reinstatement Risk • Main cover $250M xs $50M
Slide 24: Enabling a more resilient future
ersonal use only Enabling amore resilient future ® QBE