QBE CEO bemoans 'disappointing' loss in 2020, scraps dividend

Australia-headquartered QBE Insurance Group reported "disappointing" results for the last financial year as COVID-19, mounting catastrophe losses and adverse prior year claims development took their toll. In light of the substantial 2020 statutory loss, the company's board has decided not to declare a final dividend.

The global re/insurer swung to a net loss of $1.52 billion in 2020, compared with a net profit of $550 million in 2019.

QBE benefitted from premium rate momentum and strong new business growth, particularly in North America and International, increasing its gross written premium by 10 percent to $14.64 billion in 2020 from $13.44 billion in 2019.

The group's combined ratio deteriorated to 104.2 percent, compared with 97.5 percent in the prior year, reflecting COVID-19 impacts, adverse prior accident year claims development and elevated catastrophe claims.

The catastrophe claims for the year were $688 million, driven by adverse experience in Australia due to widespread bushfires and significant east coast hail and storm claims, coupled with US wildfires and a record number of Atlantic hurricanes.

QBE's interim chief executive Richard Pryce said he was "very disappointed" with the full-year loss, noting that his primary focus in 2021 will be on performance improvement.

"Coupled with the improved positioning of the underlying business, we enter this year with confidence and optimism," he said.

"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.”

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