QBE Insurance Group (QBE) Q3 2025 TU earnings summary

Executive summary

• Return on equity is expected to remain in the high teens for FY25, supported by targeted premium growth and strong underwriting and investment performance.

• Planning for FY26 is well advanced, with expectations of further premium growth and a stable combined operating ratio.

• Announced an on-market buyback of AUD 450 million to be completed through 2026, funded by surplus capital.

• Confident in delivering 2025 guidance for growth and combined operating ratio, with early guidance for 2026 indicating continued strong returns.

Financial highlights

• Gross Written Premium (GWP) grew 6% year-over-year for the nine months to 30 September 2025, with ex-rate growth at 5%.

• Excluding non-core run-off in North America, ex-rate GWP growth was 7%; excluding Crop, growth was 6%.

• Premium rate increases year-to-date were -1.5%, mainly due to commercial property lines, while outside commercial property and Lloyd's, increases were ~4%.

• Net catastrophe claims for the ten months to October were ~$700 million, below the ~$950 million allowance.

• Investment returns remained strong, with a core fixed income yield of 3.7% and total investment FUM at $34.8 billion.

Outlook and guidance

• FY25 and FY26 Group combined operating ratio forecasted at ~92.5%.

• FY25 constant currency GWP growth expected in the mid-single digits, including a ~$250 million drag from non-core run-off in North America.

• Return on equity anticipated to continue in the high teens.

• Premium rate increases for 2026 expected to be similar to 2025, with focus on sustainable mid-single-digit volume growth.

• No reserve releases planned for 2026; cost growth expected to remain below revenue growth, improving expense ratio.