QBE has posted an after-tax loss of $254 million for the 2013 calendar year, down a huge 133 per cent from a $761 million profit in 2012.
Profits from its core insurance business fell from $1.262 billion to $841 million, dragging QBE’s insurance profit margin from 8.0% in 2012 to 5.5% in 2013.
QBE has pinned its troubles on a struggling US business for some time and the insurer’s results announcement today shows just how poorly the region has performed in a global context.
From QBE’s investor presentation:
QBE is targeting an insurance profit margin of 10% in 2014, with premiums due to rise 2.5%.
Premiums rose an average of 4% across the group in 2013.