QBE Insurance Group (QBE) H1 2025 earnings summary

Executive summary

• Achieved strong half-year performance with net profit after tax of $1,022M, up 27%-28% year-over-year, and adjusted ROE of 19.2% versus 16.8% prior period.

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

• Combined operating ratio improved to 92.8% from 93.8%, reflecting disciplined underwriting, portfolio optimization, and favorable prior year development.

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

• Profitability remains attractive across most portfolios, with resilience despite industry-wide challenges and complex macro conditions.

Financial highlights

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

• Adjusted net profit for the half was a record $1,022M, up nearly 30% from the prior period.

• Investment income totaled $788M, with a 4.8% annualized return and risk asset return at 4.6%.

• Adjusted EPS (diluted) rose 32% to A$103; basic adjusted EPS rose to 66.1 US cents from 51.9 US cents.

• Favorable prior year reserve releases of AUD 90 million, compared to AUD 20 million adverse in the prior period.

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 operating ratio outlook maintained at around 92.5% for 2025, with low-to-mid 90s targeted.

• Return on equity expected to remain in the high teens, with continued investment in modernization and customer initiatives.

• Expense ratio expected to stay in the 12%-12.5% range, with medium-term aspiration to reduce by up to 1 percentage point.

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