QBE Insurance Group Ltd (ASX: QBE) saw its shares plummet by 5.05% in intraday trading on Friday, despite reporting a 28.3% increase in half-year profit. The unexpected drop comes as investors appear to be focusing on the company's future outlook rather than its current performance.
The Australian insurance giant reported an adjusted net profit after tax of $997 million for the first half of fiscal 2025, up from $777 million a year earlier and beating analyst estimates of $839.39 million. Gross written premiums grew by 5.9% to $13.82 billion, driven by robust growth in its international and North American operations. The company also declared an increased interim dividend of 31 Australian cents per share, up from 24 cents the previous year.
However, the market's negative reaction suggests concerns about QBE's future performance. The company's outlook for 2025, projecting mid-single-digit gross written premium growth and a combined operating ratio of 92.5%, may have fallen short of investor expectations. Additionally, with the insurance industry facing challenges such as rising catastrophe claims and economic uncertainty, investors might be cautious about the company's ability to maintain its growth trajectory in the face of these headwinds.
