QBE Insurance Group has reconfirmed its full-year 2026 outlook following a strong start to the year, with management signaling confidence in sustaining robust performance across its global portfolio. The group expects mid-single-digit gross written premium growth alongside a Group combined operating ratio of approximately 92.5% for the full year, supported by targeted premium growth, resilient underwriting, and solid investment management. This profitability target translates to roughly 7.5% underwriting profit on every premium dollar, a solid return for a large, diversified insurer navigating competitive markets.
Headline premium growth in the first quarter reached 11% compared to the prior corresponding period, though on a constant currency basis this translates to 7%. The underlying drivers reveal a more nuanced picture of the business. Ex-rate growth of 6% was underpinned by strong momentum in North America Crop and several portfolios within International. However, excluding Crop and exited lines, ex-rate growth moderated to just 2%, with a disproportionate impact from reduced volume in select portfolios including Accident and Health, which face renewal bias toward the first quarter. This distinction matters for investors seeking to assess organic growth momentum.
Market conditions continue to support rate adequacy across QBE’s diversified global portfolio, with Group premium rate increases of approximately 2% in 1Q26 aligning with management expectations. The competitive landscape remains dynamic, particularly in commercial property and Lloyd’s, where pricing pressures persist. Excluding these segments, Group rate increases remained consistent with 2025 levels at approximately 4%, suggesting underlying rate momentum in less contested segments of the portfolio.
Underwriting performance has been supported by favorable catastrophe experience relative to allowances. The net cost of catastrophe claims for the four months to April 2026 totaled approximately 300 million dollars against QBE’s first-half catastrophe allowance of 517 million dollars. Recent natural catastrophe activity was driven by multiple events in Australia and a series of storms in the Northern Hemisphere. Direct underwriting impacts from the conflict in the Middle East have not been material to date, with net claims estimated at approximately 60 million dollars, and exposure to the region is characterized as generally limited.
Investment performance has remained resilient through the start of 2026, with returns underpinned by supportive core fixed income yields. Investment income in the four months to April reached approximately 500 million dollars, with the core fixed income yield increasing modestly to 4.1% at 1Q26 from 3.7% at full-year 2025. Total investment funds under management reached 36.1 billion dollars, with risk assets accounting for 15% of the portfolio. Investors should monitor the trajectory of premium growth excluding crop and specialty lines, the competitive dynamics in commercial property and Lloyd’s as rate momentum potentially moderates, and any further developments related to geopolitical exposures. This announcement is price sensitive and has been classified as material by the ASX.
View the full ASX announcement (PDF)
About QBE Insurance Group Limited (ASX: QBE)
QBE Insurance Group is one of the world’s top 20 general insurance and reinsurance companies, operating in 27 countries. It provides commercial, personal, and specialty insurance products.
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