Updates throughout with details on results, transactions
Aug 9 (Reuters) - Australia's QBE Insurance Group QBE.AX on Friday reported a more than twofold jump in its first-half profit, boosted by higher gross written premiums, and announced reinsurance deals to de-risk exposure to its reserves.
The company's gross written premiums grew 2% to $13.05 billion for the first half of fiscal 2024.
Higher interest rates during the period also led to strong investment income, while QBE expects the trend to continue through the remainder of fiscal 2024.
Besides, the company entered into reinsurance deals with Britain-based RiverStone International and global insurance group Enstar ESGR.O, in a bid to de-risk its exposure to reserves totalling about $1.6 billion.
These deals are expected to de-risk all of QBE's North America middle-market reserves and a small of other portfolios in its international and North America businesses and lead to a $230 million capital benefit for QBE in the second half of the year.
The Sydney-based insurer, which has a presence in 27 countries, said its profit after tax for the six months ended June was at $802 million, compared with $400 million a year ago.
Its first-half results were also aided by lower catastrophe-related claims. The company paid out $527 million mainly to account for floods in Dubai, storms in the U.S. and exposure to the unrest in New Caledonia, lower than the $609 million reserved for period.
That helped its combined operating ratio (COR) improve to 93.8%, compared with 98.8% a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.
QBE expects to post gross written premium growth of 3% and a COR of 93.5% for the full-year 2024.
The company also declared a final dividend of 24 Australian cents per share, up from 14 Australian cents apiece a year ago.
(Reporting by Ayushman Ojha, Himanshi Akhand and Rishav Chatterjee in Bengaluru; Editing by Pooja Desai and Shilpi Majumdar)