QBE Insurance Group (QBE) H1 2025 earnings summary

Executive summary

• Net profit after tax rose to $1,022 million, up from $802 million year-over-year, with adjusted net profit after tax at $997 million, and adjusted ROE of 19.2% versus 16.8% prior period.

• Gross written premium grew 6% to $13.8B (8% excluding exited portfolios), with organic growth in International and North America, and reduced drag from exited portfolios.

• Combined operating ratio improved to 92.8% from 93.8%, driven by strong underwriting, portfolio optimization, and favorable prior year reserve development.

• Interim dividend increased to 31 Australian cents per share, 30% payout ratio, 25% franked.

• Catastrophe costs were below allowance despite elevated industry losses, with major events in California, Texas, and Australia.

Financial highlights

• Net insurance revenue increased to $8.8B from $8.5B year-over-year; insurance operating result rose to $639M from $525M.

• Investment income totaled $788M, with a 2.4% return and risk asset return of 4.6%.

• Net profit after income tax was $1,022M, up from $802M in 1H24.

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

• Debt to total capital increased to 25.2% from 19.9% due to Tier 2 issuance replacing $900M of Additional Tier 1 capital notes.

Outlook and guidance

• Full-year guidance targets mid-single digit constant currency GWP growth and a combined operating ratio of approximately 92.5%.

• Rate adequacy remains supportive across most portfolios, with further profitable growth anticipated.

• 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%.

• Underwriting drag from non-core segment anticipated to be less than $100M.