QBE Insurance Group (QBE) H2 2025 earnings summary

Executive summary

• Achieved record post-tax profit of $2.157 billion, with EPS up 25% year-over-year and ROE at 19.8%, exceeding all guidance and targets.

• Gross written premium grew 7% to $23.96 billion, or 8% excluding non-core exits, surpassing guidance.

• Combined operating ratio improved to 91.9%, outperforming guidance and prior year.

• Maintained a high-quality, diversified business model, well-positioned for favorable industry fundamentals and emerging risk opportunities.

• Strategic priorities focused on sustainable growth, portfolio optimization, and significant progress in exiting non-core portfolios.

Financial highlights

• Adjusted net profit after tax increased 23% to $2.13 billion; adjusted EPS up 25% to A$2.17.

• Net investment income reached $1.633 billion, with a 4.9% return; risk asset portfolio delivered a 9.6% return.

• Full year dividend of A$1.09 per share, up 25% year-over-year, with a 50% payout ratio.

• Expense ratio at 12.4%, with expense growth moderating to 5%.

• Book value per share (ex-AT1) up 18% in USD terms to A$11.6.

Outlook and guidance

• FY26 outlook targets mid-single-digit GWP growth (constant currency), combined operating ratio around 92.5%, and ROE above 15%.

• Expense ratio expected to improve to 12% in 2026 and glide lower over the medium term.

• No explicit reserve releases factored into guidance; ROE guidance assumes 80% POA on cat budget.

• Market conditions remain supportive, with 90% of GWP expected to meet or exceed target returns in 2026.

• Portfolio rebalancing and targeted growth in high-margin areas like reinsurance, portfolio solutions, and cyber.