QBE Insurance Group (QBE) investor relations material

Executive summary

• Delivered strong first half/half-year results with net profit after tax up 27–28% to $1,022M, adjusted ROE of 19.2%, and combined ratio improved to 92.8% from 93.8%, reflecting disciplined underwriting and business momentum.

• Gross written premium grew 6% to $13.8B, with 8% growth excluding crop and non-core exits, and organic growth in International and North America.

• Interim dividend of 31 Australian cents per share declared, payout ratio 30%, 25% franked, up from 24 cents prior period.

• Business strategy shifting from derisking to growth and modernization, leveraging data, AI, and customer-centric initiatives.

• Credit ratings upgraded to AA- by S&P and Fitch, reflecting improved capital strength and business quality.

Financial highlights

• Net insurance revenue rose to $8.8B, insurance operating result increased to $639M, and insurance profit margin improved to 13.1%.

• Adjusted net profit for the half reached a record $1B, up nearly 30% from the prior period.

• Investment income totaled $788M, with an annualized return of 4.8%.

• Expense ratio held steady at 12–12.1%, with expectations to remain in the 12–12.5% range.

• Catastrophe costs were $480M, well within the $550M allowance despite industry-wide high losses.

Outlook and guidance

• On track for mid-single digit constant currency GWP growth for the full year, with portfolio exits expected to reduce GWP by $250M.

• Combined ratio guidance maintained at around 92.5% for FY25.

• Return on equity expected to remain in the high teens for 2025.

• Expense ratio targeted to improve over the next three years as modernization investments mature.

• Investment portfolio expected to maintain a yield near 3.8%.