QBE has reported a 46 per cent drop in half-year profit

QBE announced a 5 per cent increase in the interim dividend to 21¢ (AUD) per share fully franked. 

QBE Result Snapshot 1H2016

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QBE Result Snapshot (Source – Company Reports)

QBE reported an interim profit of $265 million for the six months ended June 30, 2016. The result was down from $455 million in the previous corresponding period.

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Cash profit after tax fell 39 per cent to $US287 million. Gross written premium was flat on a constant currency basis but underwriting profit fell 5 per cent to $US337 million.

financial result summary

QBE Financial Result Summary (Source – Company Reports)

Margins were squeezed as the company showed its combined operating ratio (COR), the key measure of underwriting profitability, for the period was 99 per cent compared to 95.3 per cent in the previous corresponding period. A COR under 100 indicates an underwriting business is profitable.

cor

Strong Profitability in Long Tail Classes (Source – company Reports)

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