QBE Insurance Profit US$761m FY2012

Insurance company, QBE Insurance Group (ASX:QBE) have reported its full year financial results to shareholders and investors on the Australian stock market.

• QBE Insurance Net Profit US$761 million up 8 percent from US$704 million in FY 2011.
• QBE full year insurance profit margin was 8 percent, up from 7.1 percent.
• The profit was lower than expected (with forecasts at $820 million) after high claims for accidents and weather events in the USA including a drought and Superstorm Sandy.
• QBE Insurance Chief executive John Neal said, "I will provide more detail of our new strategic direction, the progress of the operational transformation program and our targeted cost savings as we progress through 2013. QBE has been a hugely successful organisation over the last 15 years but, as the world changes, we need to evolve to continue to meet or exceed the expectations of our key stakeholders."
• QBE will increase insurance premiums by 5 percent in 2013.
• QBE insurance has acquired 75 companies over 10 years.
• QBE Insurance Group is Australia's largest insurance company by market capitalisation and by premium income.
• Annual cash profit was US$1.04 billion
• 4,300 people are employed by QBE insurance in its Australian division, but 700 jobs is planned to be sent offshore to Manila, Philippines.
• CEO Neal said, "700's in the ballpark for what we think we can achieve out of our major operating divisions, so that includes the US and includes Europe. We can manage that not through major redundancy programs, because we don't have any, but through natural staff turnover and a reduction on any dependency on third party contractors."
• QBE Insurance current office in Manila has a capacity of 800 to 900 office workers.
• QBE Insurance announced a fully-franked final dividend distribution of 10 cents per share, down from 25 cents.