For personal use only
QBE Insurance Group Limited ABN 28 008 485 014 Level 18, 388 George Street, SYDNEY NSW 2000 Australia GPO Box 82, Sydney NSW 2001
telephone + 612 9375 4444 • facsimile + 612 9231 6104
www.qbe.com
18 February 2022
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 year ended 31 December 2021
QBE Insurance Group Limited announces to the market the financial results for the year ended 31 December 2021.
The following documents are attached:
- Appendix 4E - Preliminary Final Report;
- QBE's 2021 Annual Report including financial statements for the year ended 31 December 2021;
- Appendix 4G for the year ended 31 December 2021; and
- QBE's 2021 Sustainability Report.
This release has been authorised by the QBE Board of Directors.
Yours faithfully,
Carolyn Scobie
Company Secretary
Encl.
For personal use only
QBE Insurance Group Limited
Appendix 4E - Preliminary final report for the year ended 31 December 2021
Results for announcement to the market
2021 | 2020 | |||
UP / DOWN | % CHANGE | US$M | US$M | |
Revenue from ordinary activities | Up | 17% | 20,762 | 17,814 |
Profit / (loss) from ordinary activities after income tax | ||||
attributable to ordinary equity holders of the Company | Up | N/A | 750 | (1,517) |
Profit / (loss) for the period attributable to ordinary equity | ||||
holders of the Company | Up | N/A | 750 | (1,517) |
Net profit after tax was $750 million for the year ended 31 December 2021, compared with a net loss after tax of $1,517 million in the prior year. The current year profit reflects a material turnaround from the prior year which included a significant underwriting loss due to COVID-19, adverse prior accident year claims development, and impairments of North American goodwill and deferred tax assets.
The Group reported an underwriting profit of $1,138 million compared with a loss of $869 million in the prior year, equating to a combined operating ratio of 91.5% compared with 107.4%. Excluding the impacts of changes in risk-free rates, the combined operating ratio was 93.7% compared with 104.2% in the prior year. Gross written premium was up by 26%, benefiting from premium rate increases, improved Group-wide retention and strong new business growth.
The net claims ratio was 62.4% compared with 76.3% in the prior year (or 64.6% compared with 73.1% excluding the impact of changes in risk-free rates) mainly reflecting the reduced impact of COVID-19 claims (a net benefit of $141 million compared with a cost of $560 million in the prior year) and lower adverse prior accident year claims development relative to the prior year. The combined commission and expense ratio decreased to 29.1% from 31.1% in the prior year, mainly reflecting disciplined cost management and operating leverage driven by strong premium growth.
Total investment income was $122 million compared with $226 million in the prior year, mainly reflecting the adverse impact of higher risk-free rates partly offset by increased returns on growth assets.
The Group's effective tax rate was 17% compared with negative 3% in the prior year reflecting the mix of corporate tax rates in the jurisdictions in which QBE operates and the utilisation of previously unrecognised tax losses in the North American tax group. The prior year tax rate was also impacted by the non-deductible impairment of goodwill and derecognition of deferred tax assets in North America.
AMOUNT | FRANKED AMOUNT PER | |
PER SECURITY | SECURITY | |
DIVIDENDS | (AUSTRALIAN CENTS) | (AUSTRALIAN CENTS) |
Interim dividend | 11 | 1.1 |
Final dividend | 19 | 1.9 |
The final dividend will be 10% franked. The Dividend Reinvestment Plan and Bonus Share Plan will be satisfied by the issue of 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 price of the shares in the 10 trading days between 14 March and 25 March 2022 (both dates inclusive).
The record date for determining shareholder entitlements to the dividend is 8 March 2022. The last date for receipt of election notices applicable to the Dividend Reinvestment Plan and Bonus Share Plan will be 9 March 2022.
The final dividend will be paid on 12 April 2022.
Additional disclosures
Additional Appendix 4E disclosure requirements can be found in the QBE Insurance Group Limited Annual Report for the year ended 31 December 2021 (Attachment A).
The Annual Report should be read in conjunction with any market or public announcements made by QBE Insurance Group Limited during the reporting year in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules. The independent auditor's report is included at pages 155 to 162 of the Annual Report.
Other information
At the balance date, QBE held an interest in Mitti Insurance Pty Ltd (50%), Raheja QBE General Insurance Company (49%) and Chrysalis Management Ltd (20%). The Group's aggregate share of profit or loss in these entities is not material. On 6 July 2020, QBE announced the sale of Raheja QBE Insurance Company Limited. The transaction is currently awaiting regulatory approval in India.
QBE Insurance Group Limited | |
ABN 28 008 485 014 | 1 |
QBE Insurance Group Limited
Attachment A: Annual Report for the year ended 31 December 2021
For personal use only
QBE Insurance Group Limited | |
ABN 28 008 485 014 | 1 |
For personal use only
QB E IN SU R ANC E G ROU P LIM ITED
For personal use only
Important information
Basis of presentation (unless otherwise stated)
All amounts in this report are US dollars.
Premium growth rates are quoted on a constant currency basis.
Premium rate changes exclude North America Crop and/or Australian compulsory third party motor (CTP).
Adjusted net cash profit (loss) after tax adjusts for Additional Tier 1 capital coupon accruals, amortisation and restructuring costs.
APRA PCA calculations at 31 December are indicative. Prior year calculation is consistent with APRA returns finalised subsequent to year end.
Basis of presentation (Section 1)
Combined operating ratio, net claims ratio and underwriting results exclude the impact of changes in risk-free rates used to discount net outstanding claims.
Basis of presentation (Section 2)
Combined operating ratio and net claims ratio exclude the impact of changes in risk-free rates used to discount net outstanding claims.
2021 figures exclude the impact of COVID-19 and the transaction to reinsure Australian CTP.
2020 figures exclude the impact of COVID-19.
Prior accident year claims development excludes North America Crop development that is matched by premium cessions under the MPCI scheme.
North America and International results (2019 and earlier) have been restated for the transfer of North America's inward reinsurance business to QBE Re, part of International.
Prior periods (2019 and earlier) are presented on a continuing operations basis and adjusted basis as presented in prior year reports.
Analysis of the Group by division excludes Corporate & Other.
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QBE Insurance Group Ltd. published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 20:57:08 UTC.