Insurance giant QBE has doubled its profit in the six months to June 30, supported by fewer catastrophe costs and investment income.
The company reported a first-half profit of $US802 million ($A1.2 billion), compared with $US400 million for the prior period, and bolstered its interim dividend to 24c, up from 14c in the 2023 period.
Despite the improvement in its bottom line, QBE shares were down 3.1 per cent to a six-month low of $15.825 at 11.10am AEST.
The Sydney-based insurer attributed its strong financial performance to favourable investment returns and an improvement in underwriting profitability.
The combined operating ratio - a measure of claims paid against premium earned - improved to 93.8 per cent from 98.8 per cent in the prior period.
This was primarily driven by "lower catastrophe costs and more stable reserve development", QBE said in its half-yearly results.
Gross written premium increased two per cent on a headline basis to $US13,051 million from $US12,803 million in the prior period.
Total investment income was $US733 million, or a return of 2.4 per cent, compared with $US662 million, or 2.4 per cent, in the prior period.
The insurer announced it would step away from its North American middle-market segment a few months earlier, a call it says "meaningfully increased our confidence in achieving improved and more stable performance" in the region.
QBE Group chief executive officer Andrew Horton said the closure would help refocus the North America strategy on businesses which hold more meaningful market position, relevance and scale.
“I’m pleased with the improved alignment and connectivity across the enterprise," Mr Horton said on Friday.
