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QBE Insurance Group Limited Reports 2019 Full Year Results

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

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.



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).

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ASR has no position in any of the stocks mentioned.

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