All eyes will be on the QBE Insurance Group Ltd (ASX: QBE) share price next week when the company drops its earnings for 2021. The insurer will release its results next Friday.
At the time of writing, the QBE share price is $12.65, 1.33% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.27%.
Let’s take a look at what the market might expect to hear from QBE next week.
What to look out for when QBE reports
The release of QBE’s earnings for 2021 will round off its strong first-half results.
The QBE share price surged 8% when the company released its results for the first 6 months of 2021 in August.
Within them, it detailed a 26.9% increase to its gross written premiums, an 8.9% increase of its net earned premiums, and statutory net profit after tax of US$441 million.
Unfortunately, the company didn’t provide guidance.
Though, its interim CEO said, “while we continue to benefit from meaningful compound premium rate increases in all our geographies, there are signs that pricing momentum is moderating, particularly in international markets.”
Additionally, the company stated it will keep pushing forward with its efficiency program focused on IT modernisation and digitisation.
Lower expenses and restructuring charges might also be worth keeping an eye out for next Friday.
QBE is targeting an expense ratio of 13% by 2023, compared with 13.7% in the first half of 2021.
It, therefore, expects to pay a restructuring charge of US$150 million over 3 years, of which US$29 million was recognised in the last half.
Additionally, Friday’s release will be the first set of results posted under the company’s new CEO. Andrew Horton took over the role in September 2021.
QBE share price snapshot
The QBE share price has been outperforming the ASX 200 in 2022 so far. It has gained 6% compared to the index’s 4% slump.
QBE’s stock is also 44% higher than it was this time last year.
The post Own QBE (ASX:QBE) shares? Here’s what to watch when the insurer reports next week appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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