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QBE - QBE Insurance News Story

A$8.53 0.3  4.2%

Last Trade - 6:40am

Sector
Financials
Size
Large Cap
Market Cap £5.74bn
Enterprise Value £8.08bn
Revenue £11.98bn
Position in Universe 51st / 1837

UPDATE 1-QBE H1 cash profit slips, shares tumble

Wed 17th August, 2016 1:59am
* H1 cash profit $287 mln vs $343 mln 
    * Sees FY GWP $13.7-$14.1 bln vs pvs guidance of $14.2-$14.6 
    * Shares slump over 11 pct to a 1-1/2 mth low 
 
 (Adds shares, guidance, CEO quote) 
    SYDNEY, Aug 17 (Reuters) - QBE Insurance Group  QBE.AX , 
Australia's No.1 insurer by premium income, posted a 39 percent 
drop in first-half cash profit after higher claims, and cut its 
full-year guidance, sending its shares down more than 10 
percent. 
    The insurer, which generates almost three-quarters of its 
premiums abroad, has been taking steps to boost earnings and 
reinstate investor confidence after years of underperformance. 
 urn:newsml:reuters.com:*:nL4N11F1G4 
    But a negative or low interest rate environment globally, a 
China-led slowdown in Asia and continued weaknesses in some 
North American and Australian market segments are weighing on 
earnings growth. 
    "We are responding decisively with price increases, revised 
terms and conditions and other portfolio adjustments, and remain 
confident that these actions will benefit the claims ratio in 
2017," CEO John Neal said in a statement. 
    Its shares slumped as much as 11.5 percent in early trading 
to its lowest since June 28. At 0054 GMT, they were down 9.3 
percent. QBE shares have underperformed the benchmark index this 
year, falling over 19 percent compared with a 4 percent gain in 
S&P/ASX 200  .AXJO . 
    On Wednesday, QBE said cash profit fell to $287 million in 
the six months to June 30 compared with $471 million a year ago 
and analysts' forecasts of $343 million. The insurer lifted its 
interim dividend by 5 percent to 21 Australian cents a share. 
    Gross written premium slipped 6.7 percent to $8.1 billion, 
forcing the Sydney-based company to lower its full-year target 
to between $13.7 billion and $14.1 billion from $14.2 billion to 
$14.6 billion previously. 
    ($1 = 1.2999 Australian dollars) 
 
 (Reporting by Swati Pandey; Editing by Richard Pullin) 
 ((swati.pandey@thomsonreuters.com; +61 2 9321 8166; Reuters 
Messaging: swati.pandey.thomsonreuters.com@reuters.net; 
twitter.com/swatisays)) 
 
Keywords: QBE INSURANCE RESULTS/
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