QBE Insurance Group (QBE) Q3 2025 TU earnings summary

Executive summary

• On track for another year of exceptional performance, with strong business momentum and confidence in sustaining high returns.

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

• 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.

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

Financial highlights

• Gross Written Premium (GWP) growth of 6% year-over-year, with ex-rate growth at 5%.

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

• Premium rate increases year-to-date around 1.5%, with higher increases (4%) outside commercial property and Lloyd's.

• Group premium rate increases were -1.5% for the nine months, mainly due to commercial property lines.

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

Outlook and guidance

• 2026 combined operating ratio guidance set at around 92.5%, reflecting improved stability and visibility of profits.

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

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

• Key drivers for 2026: normalization of catastrophe and large risk costs, supportive operating environment, and further margin expansion from performance initiatives.

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