QBE Insurance Group (ASX: QBE) Lifts Half-Year Profit and Dividend

QBE Insurance Group reported higher first-half earnings as premium growth, lower catastrophe costs and investment income supported the result.

Adjusted net profit after tax rose 4% to US$1.033 billion from US$997 million a year earlier. Statutory net profit increased to US$1.033 billion from US$1.022 billion.

The insurer declared an interim dividend of 33 Australian cents per share, up from 31 cents. That represents a 33% payout ratio, compared with 30% in the prior period.

Adjusted return on equity reached 17.7% on an annualised basis. While down from 19.2%, it remained above QBE’s medium-term outlook of at least 15%.

Premium Growth Meets Outlook

Gross written premium climbed to US$15.14 billion from US$13.82 billion. Growth was 6% on a constant-currency basis, matching QBE’s mid-single-digit outlook.

North America recorded 4% growth, while International increased 11%. Australia Pacific declined 1%.

Excluding Crop, gross written premium growth was 3%. It reached 4% after also excluding portfolios that QBE has exited.

Growth continued across QBE Re, Cyber, Lloyd’s portfolios, North American adjacencies and Portfolio Solutions.

Premium volume shows the scale of business written during the period. However, the combined operating ratio remains a central measure of underwriting performance. QBE’s stable ratio indicates premium growth did not come with a deterioration in the headline underwriting result.

Catastrophe Costs Stay Below Allowance

The combined operating ratio held at 92.8%, unchanged from the prior period. QBE remains on track for its full-year outlook of about 92.5%.

Catastrophe claims cost US$445 million, down from US$479 million. The corresponding claims ratio fell to 4.7% from 5.4%.

Importantly, catastrophe costs remained below QBE’s first-half allowance of US$517 million. Favourable prior accident-year claims development totalled US$403 million, including US$108 million from the central estimate.

Still, the ex-catastrophe claims ratio increased to 61.8% from 61.5%. QBE cited claims inflation in Accident and Health and large individual events.

The expense ratio also rose, reaching 12.4% from 12.1%. The net commission ratio edged up to 18.1% from 17.9%.

Investments and Capital

Total investment income increased to US$828 million from US$788 million, producing a 2.3% return. Core fixed income generated US$635 million, while risk assets contributed US$192 million.

Funds under management rose 2% to US$36.6 billion. High-quality fixed income represented 85% of the portfolio, with risk assets accounting for 15%.

QBE’s indicative regulatory capital multiple was 1.82 times, versus 1.87 times at December 2025. It would be 1.78 times after allowing for the interim dividend.

The company completed its A$450 million share buyback in April. Further capital initiatives include the Trade Credit business sale and a loss portfolio transfer.

For 2026, QBE retained guidance for mid-single-digit premium growth and a combined operating ratio near 92.5%.