QBE INSURANCE GROUP LIMITED QBE Insurance Group Limited ABN 28 008 485 014
Level 27, 8 Chifiey Square, SYDNEY NSW 2000 Australia
QBEGPO Box 82, Sydney NSW 2001
telephone + 612 9375 4444 • facsimile + 612 9231 6104 www.qbe.com
17 August 2016
The Manager
Market Announcements Office ASX Limited
Level 4
Exchange Centre 20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam,
Report on results and financial statements for the half year ended 30 June 2016
The Directors of QBE Insurance Group Limited announce the financial results for the half year ended 30 June 2016.
The following documents are attached:
Appendix 40 - half year report; and
QBE's half year report including financial statements for the half year ended 30 June 2016.
Yours faithfully
Carolyn Scobie
Company Secretary
Attachments
QBE Insurance Group Limited Appendix 4D - Half year report for the period to 30 June 2016 Results for announcement to the marketUP / DOWN | % CHANGE | 2016 US$M | 2015 US$M | |
Revenue from ordinary activities | down | 1% | 7,890 | 7,928 |
Profit from ordinary activities after income tax attributable to equity holders of the company | down | 46% | 265 | 488 |
Net profit for the period attributable to ordinary equity holders of the company | down | 46% | 265 | 488 |
Net profit after tax for the period to 30 June 2016 was $265 million, down from a profit of $488 million for the same period last year.
The Group's underwriting result was a profit of $54 million compared with a profit of $295 million last year, reflecting a combined operating ratio of 99.0% compared with 95.3%. Net claims expense was impacted by a material reduction in risk-free rates used to discount claims liabilities ($283 million or 5.0% of net earned premium). The combined commission and expense ratio was down compared with the same period last year (34.3% compared with 35.4%) primarily due to the benefit of expense initiatives and the disposal of our high cost base M&LS business.
Excluding the impact of lower risk-free rates, the statutory combined operating ratio would have been 94.0%, at the lower end of our target range of 94%-95% advised to the market in February 2016.
The comparative result benefited from gains of $150 million mainly relating to the disposal of our US and Australian agency businesses.
DIVIDENDS | AMOUNT PER SECURITY (AUSTRALIAN CENTS) | FRANKED AMOUNT PER SECURITY (AUSTRALIAN CENTS) |
Interim dividend | 21 | 10.5 |
The Dividend Reinvestment Plan will be satisfied by the acquisition of shares on-market with no discount applicable. The Bonus Share Plan will be satisfied by the issue of new shares with no discount applicable. The unfranked part of the dividend is declared to be conduit foreign income. The share issue price for the Dividend Reinvestment Plan and the Bonus Share Plan will be based on a volume weighted average in the 10 trading days between Tuesday 30 August 2016 and Monday 12 September 2016 (both dates inclusive). The record date for determining shareholder entitlements to the dividend is 26 August 2016. | ||
The last date for receipt of election notices applicable to the Bonus Share Plan and the Dividend Reinvestment Plan will be 29 August 2016. The interim dividend will be paid on 28 September 2016. | ||
Additional disclosures
Additional Appendix 4D disclosure requirements can be found in the QBE Insurance Group Limited half year report for the period to 30 June 2016 (Attachment A).
The half year report should be read in conjunction with any market or public announcements made by QBE Insurance Group Limited during the period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules.
The independent auditor's review report is included at page 63 of the half year report.
Other information
During the period, QBE Insurance Group Limited held an interest in Pacific Re Limited (30.97%) and Raheja QBE General Insurance Company (49%). The Group's aggregate share of profits of these entities is not material.
QBE Insurance Group Limited Attachment A: Half year report for the period ended 30 June 2016QBE Insurance Group Limited
2016 Half Year ReportQBE is proud of our rich history supporting rural and regional customers, agents and producers, from crop insurance in North America to farm insurance in Australia. Our strong partnerships, deep expertise and flexible coverage give customers the confidence to get on with the job and achieve their ambitions, knowing their livelihood and assets are well protected.
QBE Insurance Group Ltd. published this content on 17 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 August 2016 22:25:08 UTC.
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