Australian insurance group QBE has announced a net loss after tax of $254 million during its 2013 full year results.
Cash profit (net profit after tax but before non-cash charges for amortisation and impairment of intangibles) was $761 million, compared with $1 billion in 2012.
The loss was due to large one-off costs primarily associated with QBE’s North American operations relating to prior year claims, write-off of goodwill and intangibles and restructuring costs.
Gross written premiums for 2013 were $18 billion, down from $18.4 billion in 2012. This was well below budget, largely due to a $715 million year-on-year reduction in North American gross written premiums, with growth in the other divisions partially offset by translation to the stronger US dollar.
Premium rate increases on renewed business averaged 4 percent overall, reflecting relatively strong rate increases in Australia and North America. Pricing in Europe remained challenged where strong competition and surplus capital is precluding any substantive rate increases.
QBE Group CEO John Neal said: “Although we are disappointed with our 2013 underwriting result, we have taken the necessary steps to deal with underperforming portfolios, completed an extensive program of management change and succession across the group and are well on the way to implementing transformation programmes, all of which will provide a solid base for our business in 2014.”
