LOGIN
REQUEST WALKTHROUGH
search
times
New call-to-action

Tags

See all

Articles

QBE

QBE Insurance Group Limited Reports 2019 Full Year Results

Tumul Sinha

Tumul is an experienced Equity Analyst with ASR Wealth Advisers. She holds a Master’s Degree in Finance from the University of Sydney. Her key industry verticals include Real Estate, Health Care and Technology.

QBE Insurance Group Limited (ASX: QBE) has reported its normalised earnings result for FY19 to the market today. QBE is Australia’s second largest global insurer after Insurance Australia Group. QBE provides insurance services mainly to Australia and the Asia Pacific Region, North America and Europe.

 

qbe insurance

QBE Insurance Group Limited (ASX: QBE) has reported its 2019 full year results, which culminated in a 5% earnings miss due to a plethora of natural disasters in its key geographies, but ultimately resulted in a 1% share price appreciation. (Credit: Wall Street Journal).

 

The business had advised the market in December 2019 that Group combined operating ratio (COR) will be above their guided range of 94.5% – 96.5% due to crop hail in the US. This has eventuated into the COR being 97.5% for FY19. Consensus expectations for net profit was around $776m, while the business reported $733m – marking a 5% earnings miss.

The North American business has historically taken away from group performance and this year was no different – being a large component of the business, it can materially impact overall results. Attritional loss ratio has continued to decline as the business streamlines itself into “safer” policies and moves away from catastrophes. Furthermore, investors were delighted to see that QBE has increasing premiums globally, along with the industry.

Traders responded positively to the results, with QBE’s stock trading up around 1% at market open. It appears that despite the earnings miss, investors are emphasising that this number is largely due to the plethora of natural disasters experienced in QBE’s primary geographies and that there still remains an inherent need for insurance.


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action
New call-to-action

Company Articles

Looking for more Stock Recommendations?

Fill in your details to receive our special report: Top 3 Income Stock Recommendations for 2020.