Net income for the second quarter ended June 30 dipped to A$859 million ($750 million), down from A$921 million in the year-ago period, said a spokesperson for QBE. The rising Australian dollar served to reduce profits at QBE by A$74 million. About 80% of QBE’s earnings come from overseas.
To avoid a slowdown in earnings growth, QBE CEO Frank O’Halloran made eight acquisitions in 2008, including a $1146 million purchase of U.S. insurer North Pointe Holdings Corp. The move, says QBE, will increase full-year profit by approximately A$160 million.
QBE is the biggest manager in the Lloyds of London market, where it targets it insurance profit margin to be as much as 20% for the year. Insurance-related earnings increased 6% to A$1.16 billion for the period.