QBE Insurance Group (QBE) H2 2025 earnings summary

Executive summary

• Achieved record post-tax profit of $2.157 billion, EPS up 25%, and ROE at 19.8%, driven by strong underwriting and investment performance.

• Gross written premium grew 7% to $23.96 billion, exceeding guidance, with improved combined ratio of 91.9%.

• Continued disciplined execution of strategy, including portfolio optimisation, digital transformation, and sustainability initiatives.

• Shareholder returns enhanced by a 25% increase in dividend per share to A$1.09 and a A$450 million buyback.

• Maintained a high-quality, diversified business model, well-positioned for industry growth and emerging risks.

Financial highlights

• Statutory net profit after tax: $2.157 billion (up 21%); GWP: $23.96 billion, up 7% year-over-year.

• Combined operating ratio improved to 91.9% from 93.1%; investment income $1.633 billion, 4.9% return.

• Adjusted EPS up 25% to A$2.17; dividend per share increased 25% to A$1.09, payout ratio 50%.

• Book value per share (ex-AT1) up 18% in USD terms to A$11.6; FUM increased 17% to $35.85 billion.

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

Outlook and guidance

• 2026 outlook: mid-single-digit GWP growth, combined ratio around 92.5%, catastrophe allowance $1.13 billion, and expense ratio ~12%.

• Medium-term target: adjusted ROE above 15% with investment returns above 3%.

• Premium rate increases expected to moderate but remain supportive; focus on organic growth and underwriting discipline.

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

• Portfolio rebalancing and targeted growth in high-margin areas like QBE Re, Portfolio Solutions, and cyber.