QBE Insurance Group (ASX: QBE) – 2026 Half Year Results Presentation

QBE Insurance Group delivered adjusted earnings per share growth of 4% in USD for the first half of 2026, with an adjusted return on equity of 17.7% that comfortably exceeded the company’s medium-term target of 15%. The result reflects consistent execution against the company’s strategic plan, with the combined operating ratio reaching 92.8%, putting the group firmly on track to achieve its full-year 2026 guidance of approximately 92.5%.

The underwriting performance underpins the group’s ability to generate sustainable returns across market cycles. Premium rate increases remained at 3% excluding commercial property and international markets, reflecting the company’s disciplined approach to pricing in a competitive environment. Gross written premium grew 6% on a constant currency basis, driven by breadth across North America, international markets, and the portfolio solutions business. The company achieved this growth while managing its catastrophe exposure, with 1H26 catastrophe claims remaining comfortably below the $1,130 million allowance set for the full year.

Capital management remains a strategic focus, with the company completing a A$450 million share buyback in April and announcing a loss portfolio transfer expected to improve the capital position by approximately 2 basis points. The APRA PCA multiple stood at 1.82x, positioning the group within its target range of 1.6x to 1.8x while providing flexibility to pursue growth opportunities above the company’s hurdle rate of approximately 1.5 times weighted average cost of capital. The interim dividend increased 6% in Australian dollars to A$0.33 per share, representing a 33% payout ratio that reflects the company’s confidence in earnings sustainability.

The 1H26 result included some timing-related headwinds that management expects to reverse in the second half. An onerous contract provision within the accident and health portfolio represented a full-year underwriting loss that is expected to reverse in 2H26, while Middle East impacts contributed $75 million of catastrophe costs and approximately $50 million of associated large losses. The company characterizes the overall 2H26 impact as more balanced, given the benefit of significant demand in marine underwriting.

Looking ahead, the company expects to complete several capital efficiency initiatives, including the sale of its trade credit business alongside the loss portfolio transfer announced today. Investment income benefited from a core fixed income yield of 4.1% as at 30 June 2026, with the company guiding to investment returns exceeding 3% for the full year. Management maintained its medium-term adjusted return on equity target of 15% or above, supported by mid-single digit premium growth on a constant currency basis.

Investors should monitor the realization of the company’s capital efficiency initiatives, the evolution of premium rate adequacy across its portfolio, and any updates on catastrophe activity in the second half of 2026. The group’s track record of disciplined capital allocation and sustainable underwriting performance provides a framework for assessing whether the company can sustain returns above its medium-term targets as it navigates a competitive insurance market.

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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