QBE Insurance Group

The final bill for Hurricane Sandy won’t be known for some time, but the industry is talking about US$20bn in total losses. QBE Insurance's best estimate, announced this morning, is that its share will be $350m-$450m, with a maximum possible loss of $600m. QBE expects the full year insurance profit margin will fall to 8%, from a previously expected 12%, due to Hurricane Sandy, the drought-impacted US crop business and other unrelated large individual claims. Net profit before amortisation should come in around $1bn for the year ended 31 December 2012, 30% higher than 2011 but still well below...

The final bill for Hurricane Sandy won’t be known for some time, but the industry is talking about US$20bn in total losses. QBE Insurance's best estimate, announced this morning, is that its share will be $350m-$450m, with a maximum possible loss of $600m. QBE expects the full year insurance profit margin will fall to 8%, from a previously expected 12%, due to Hurricane Sandy, the drought-impacted US crop business and other unrelated large individual claims. Net profit before amortisation should come in around $1bn for the year ended 31 December 2012, 30% higher than 2011 but still well below QBE’s long term potential. But it won't stop the final dividend from being slashed. The company pays out about 70% of its earnings as dividends and by our calculations it will need to cut the final dividend to 10 cents or less if it intends to stick to this payout ratio. The cut should only prove temporary, assuming profits rebound in 2013.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles