QBE Insurance Group, the global insurance giant headquartered in Australia, has announced a significant increase in its profits for the fiscal year 2024. Group CEO Andrew Horton recently discussed the results, highlighting the importance of broker partnerships and long-term strategic consistency.
For FY24, QBE’s profit after tax reached nearly US$1.8 billion, a substantial increase from approximately $1.4 billion in FY23. Horton noted that the personal lines segment contributes a relatively small portion of the total profits, less than 3% of the firm’s premium base. This underscores the vital role brokers play in generating the remaining 97% of premiums, making their relationships critical to QBE’s success.
When asked by Insurance Business (IB) what brokers could take away from the FY24 financial results, Horton pointed to ongoing changes within QBE and two recent senior appointments aimed at strengthening broker relationships. “I think one of the things we’ve been doing is building deeper relationships with our key broker partners over the years and trying to be much more consistent with them,” Horton stated.
He explained that, in line with QBE’s “vision” announced three years ago, the company’s goal is “to be there” for brokers “at all points of the cycle.” Horton expressed confidence that this commitment is becoming more realized than it was previously.
Horton highlighted the addition of two former Marsh leaders to key broker-facing roles. Julie Wood was appointed CEO of the insurer’s North America Division in September 2023, bringing experience from her time as a member of the global broker’s US executive committee. In June of the same year, Julie Minor, formerly a Marsh managing director for two decades, joined QBE as the global distribution head.
According to Minor’s LinkedIn profile, she’s “focused on enhancing our key brokerage partnerships.” Horton confirmed this, stating, “She’s really focused on ensuring that we listen to our broker partners, are consistent in delivery, want to innovate with them where their clients want new products and really focus on being responsive on the underwriting and ensuring we pay claims well.” Horton believes that by consistently delivering these “basic things” across its global footprint, QBE can distinguish itself from its competitors.
Challenges: Competitive Markets and Natural Disasters
When asked about challenges in QBE’s broker relationships that need improvement, Horton stated, “I don’t think there are any really big challenges.” He highlighted the strong relationships the company maintains with key brokers such as Steadfast in Australia, along with Marsh and Aon, among others. For Horton, a significant challenge lies in maintaining consistency in more competitive markets. “That’s when underwriting companies can appear to be less consistent and not as committed to some of the broker partners and clients.”
Another set of challenges arises from the increasing risks associated with natural catastrophes in several countries. “The challenge we have here in Australia is this focus on trying to lower the risk. The risk has gone up with the natural catastrophes over the past few years – we continue to build on floodplains and therefore the amount of housing stock that’s now on a floodplain is greater,” he said.
Inflation and rising repair costs have also driven up premiums for consumers, Horton added.
Building Resilience
When asked about what significant moves governments could take to strengthen resilience, Horton suggested, “I think not adding to the problem would be a good thing. So not continuing to build in areas which are high natural catastrophe risk because then we don’t add to the problem.” He emphasized the need to focus on mitigating existing challenges.
FY24 Results Reflections
Commenting on the FY24 results, Horton noted the positive impact of a reduced number of catastrophes in Australia compared to past years and a better-balanced portfolio. He also indicated the investment side of the business performed well, noting that “interest rates held up for longer in 2024 than people thought.” Horton mentioned difficult decisions made, such as exiting the mid-market business in the US during the year, which sets the stage for a forward-looking approach in 2025.
