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QBE's profits slips

QBE's profits slips

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Date Published : Thursday, August 21, 2008

Australia's largest insurance group QBE Insurance registered a seven per cent fall in first-half earnings, it announced.

Net earnings at the group fell to $859 million for the six months ended June 30th, down from $921 million during the first half of 2007.

However, QBE's gross written premiums climbed from $6.5 billion to $6.6 billion and net earned premium rose from $4.8 billion to $5.1 billion.

The increase in the value of the Australian dollar cut around $74 million from QBE's profit as over 76 per cent of its gross written premium is in overseas currencies.

QBE purports to be one of the top 25 insurers and reinsurers worldwide with a presence in over 45 countries.

The insurance group had a multi-billion takeover offer for rival insurer IAG rejected earlier this year and chief executive Frank O'Halloran said the company remains on the acquisition trail, despite recently agreeing a $1 billion deal to acquire PMI Mortgage Insurance's Australian, New Zealand and Asian operations.

"We have reached agreement on eight acquisitions this year to date which are expected to contribute net written premium income and incremental profit after tax of $550 million and $160 million respectively in the first full year," he commented.

Mr O'Halloran also said that the group has "a pipeline of acquisitions" that will enable it "convert further opportunities for the benefit of our shareholders".

Following the earnings announcement, QBE's share price closed 2.1 per cent down at $23.4. During the last 52 weeks its stock has traded between $19.50 and $35.49.
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