CEO on QBE’s Financials and How Broker Relationships Are Driving Strong Results
QBE Insurance Group Limited, a Sydney-based global insurer, reported robust financial performance for the full year 2024, as outlined in its Annual Report released on February 21, 2025. Group CEO Andrew Horton emphasized that the company’s strategic focus on broker relationships has been a key driver of these results. Below is an analysis of QBE’s financial performance and the role of broker partnerships, based on available data.
Financial Performance Highlights
QBE’s 2024 Annual Report showcased significant improvements:
- Gross Written Premium (GWP): Exceeded US$22 billion, reflecting strong growth across its North America, International, and Australia Pacific divisions.
- Net Investment Income: Reached US$1.488 billion, bolstered by a strong capital position and balance sheet.
- Combined Operating Ratio: Improved to 93.1%, indicating better underwriting profitability compared to prior years.
- Expense Ratio: Stood at 12.2%, with a net commission ratio of 17.7%, reflecting efficient cost management.
- Net Profit After Tax: While specific 2024 figures were not detailed, the 2023 results showed a surge to US$1.36 billion from US$587 million in 2022, and 2024 is described as continuing this upward trend with “stronger and more predictable performance.”
Horton noted that initiatives to reduce volatility—such as exiting the mid-market business in the US—have positioned QBE for a forward-looking 2025 with minimal portfolios needing remediation. He also highlighted efforts to balance the portfolio across 26 countries and product classes to mitigate risks from major events, like natural catastrophes, which have driven up claims costs in regions like Australia due to floodplain development and inflation.
Broker Relationships as a Growth Driver
Horton emphasized that QBE is now “more broker-focused than it has ever been,” with brokers contributing to over 97% of the company’s premium base, as personal lines account for less than 3%. Key strategies enhancing broker relationships include:
- Unified Approach Across Divisions: QBE has shifted from treating its North America, International, and Australia Pacific divisions separately to a “joined-up” approach, fostering consistent engagement with major broker partners like Marsh, Aon, and Steadfast.
- Dedicated Executive Oversight: Following discussions in early 2024, QBE assigned a group executive committee member to each key broker partner to ensure seamless collaboration and responsiveness.
- Key Appointments: The appointment of Julie Wood as CEO of North America in September 2023 and Julie Minor as Global Head of Distribution in June 2024, both with extensive broker experience, has strengthened partnerships. Minor, formerly a Marsh managing director, focuses on consistent delivery, innovation in product offerings, and efficient underwriting and claims processes.
- Broker-Focused Facilities: QBE plans to expand broker-specific offerings in the second half of 2025, building on existing facilities to meet client needs in competitive markets.
Horton stressed that consistency is critical, especially in competitive markets where insurers risk appearing less committed. He noted that QBE’s “vision” from three years ago—to be a reliable partner for brokers at all points of the insurance cycle—is yielding results, with stronger relationships driving premium growth. Challenges include rising natural catastrophe risks and inflationary pressures, which QBE is addressing through portfolio optimization and risk management.
Sentiment and Outlook
Posts on X reflect broader industry discussions about insurers managing risks and maintaining strong financials, though none specifically address QBE’s 2024 results. Horton’s optimism about QBE’s trajectory is tempered by warnings from Chair Mike Wilkins about 2025 challenges, including inflation, geopolitical tensions, and economic uncertainty. Despite these, QBE’s focus on broker relationships and portfolio resilience positions it well for continued growth. For detailed financials, visit QBE’s Investor Relations page at www.qbe.com.