QBE reviewing dividend payout policy

QBE reviewing dividend payout policy

QBE has told shareholders they can expect a higher dividend this year, with the insurance giant considering lifting its payout ratio.

Chairman Marty Becker said he could understand why shareholders wanted the payout ratio policy of up to 50 per cent of cash profits changed.

“The board can see the logic of this argument and will give due consideration to the issue over the coming months as we monitor our own continued performance in line with profit expectations,” he told the annual general meeting on Thursday.

“Given our focus to return to more consistent and predictable earnings, I am sure many of you may have questions regarding the dividend policy and any potential changes as we return to more stable earnings.”

QBE’s balance sheet is stronger and consensus analyst forecasts are for a 30 per cent profit jump this year.

The insurer returned to profitability in a $1 billion turnaround in February.

But chief executive John Neal said market conditions were tough, with premium rates low or flat.

“So, we believe it is essential to proactively manage our expense line,” he said.

But results so far indicated the company was on track for a lift in margins.

QBE has largely completed its remediation program in North America and Europe, and has sold the Argentine Workers Compensation business.

QBE shares were up 25 cents, or 1.95 per cent, at $13.04, at 1014 AEDT on Thursday.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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