eWeekly Vol I Issue 109
	Australia: QBE paints lower profit picture
	QBE Insurance Group, Australia's largest insurance company, has issued a profit warning saying that its 1H profit is expected to be lower by 40% from the same period last year because of a dent in net investment income. The insurer expects its insurance profit margin for 1H, to 30 June, to be 15.7%, which would be below its 16%-18% forecast range. Equity losses more than doubled to US$228 million while there were one-off gains of about $US220 million for the first six months of last year. In a statement, QBE Chief Executive, Mr Frank O'Halloran, said: "The continued excellent underwriting results have been more than offset by significantly lower investment income from reduced interest yields, the fall in equity markets and one off gains in the first half of 2009." The statement, issued on Monday, says that QBE remains on target to achieve operating cash flow of more than US$2 billion for the full year. Mr O'Halloran also says that he still expects to end the year in the target range. He added: "We will continue with our successful strategy of growth through carefully selected acquisitions which add to QBE's already significant geographic spread and product diversification." Separately, Insurance Australia Group this week also issued a profit warning. The group's net profit is expected to be A$91 million (US$82 million) for the full year to 30 June, a decline of 50% compared to the previous financial year. Reasons cited for the less glowing performance include a huge write-down on its UK motor business and claims from heavy storms in Melbourne and Perth earlier this year.
	Ins Communications Pte Ltd · 69 Amoy Street, Singapore 069 888 Tel: (65) 6224 5583 · Fax: (65) 6224 1091 http://www.asiainsurancereview.com/pages/e-weekly.asp?country=10 Published: 9/9/2010 8:59:30 PM © 2010 All rights reserved