QBE Reports Strong FY24 Results, Emphasizing Broker Relations
QBE Insurance Group, the global insurance provider headquartered in Australia, announced robust profit growth for the fiscal year 2024. Profit after tax reached nearly US$1.8 billion, a significant increase from $1.4 billion the previous year, according to a recent report.
Group CEO Andrew Horton highlighted the importance of brokers in QBE’s business model. “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 said. He noted that brokers account for approximately 97% of the company’s premium base.
Strong Broker Partnerships
When asked what key takeaways brokers should glean from the FY24 financial outcomes, Horton emphasized QBE’s commitment to consistent support, mirroring the firm’s long-term vision. This strategy is designed to ensure QBE’s presence for their broker partners “at all points of the cycle.” Horton believes that this commitment is more evident now than it has been in previous years. He also underscored the value of two recent appointments of former Marsh leaders to broker-facing positions.
In September 2023, Julie Wood was named CEO of the North America Division. In June, Julie Minor, formerly a managing director at Marsh for two decades, joined QBE as the global distribution head.
“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 explained.
Navigating Challenges and Looking Ahead
Horton acknowledged that while QBE enjoys strong broker relations overall, market competition presents a significant challenge. He observes that during these periods, some underwriting companies may appear less committed to their broker partners and their clients.
Additionally, increasing natural catastrophe risks in some regions pose ongoing challenges. He cited Australia’s focus on mitigating risk in the face of rising natural disasters, and the increasing number of homes built on floodplains.
Inflation and rising repair costs also contribute to higher premiums for consumers. In response to the byline “Enabling a more resilient future,” Horton suggested that governments could assist by avoiding construction in areas with high natural catastrophe risk. He proposed that mitigating existing risks would be the crucial step toward long-term resilience.
Commenting on the FY24 results, Horton noted that a lower number of catastrophes in countries like Australia and the investment side of the business were also factors in the strong earnings. Difficult decisions, such as withdrawing from the mid-market business in the US, have positioned the company well for 2025, leading to fewer books to remediate.
