QBE publishes financial results for 2020

QBE publishes financial results for 2020 | Insurance Business New Zealand

QBE publishes financial results for 2020

QBE Insurance Group has released its financial results for the year ended December 31, and the 2020 numbers don’t look pretty for the Sydney-headquartered global insurer.

According to QBE’s annual report, the company posted an underwriting loss, insurance loss, and net loss after income tax. In light of the results, the insurer’s directors have elected not to declare a final dividend.

Here’s how QBE performed in the past two years:

Metric

FY 2020

FY 2019

Underwriting (loss) profit

(US$869 million)

(US$2 million)

Insurance (loss) profit

(US$727 million)

US$647 million

Net (loss) profit after tax

(US$1.52 billion)

US$550 million


“2020 proved to be a very challenging year and we are disappointed with our financial result,” stated group chief financial officer Inder Singh. “In addition to COVID-19, the result was impacted by above average catastrophe claims and prior accident year claims development.

“However, we enter 2021 with confidence and are well placed to maximise opportunities in the best global insurance trading conditions in over a decade.”

Broken down, here are the figures in terms of QBE’s insurance result:

Segment/Source

Insurance (loss) profit, 2020

Insurance (loss) profit, 2019

North America

(US$488 million)

(US$137 million)

International

US$265 million

US$280 million

Australia Pacific

US$252 million

US$487 million

Corporate and other adjustments

(US$101 million)

US$17 million

COVID-19 impact

(US$655 million)


Commenting on the numbers, interim group chief executive 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.”