QBE Insurance Group (ASX: QBE) – Files 2026 Half Year Investor Report

QBE Insurance Group has delivered a half-year result that demonstrates consistent operational execution, reporting an adjusted return on equity of 17.7%, which exceeds the company’s medium-term target of 15% or more. The insurer’s net profit after tax reached $1,033 million, with the combined operating ratio holding steady at 92.8%, aligned with the full-year guidance of approximately 92.5%. This consistency in performance suggests management is delivering on its disciplined underwriting and capital management strategy.

Gross written premium growth of 6% on a constant currency basis reflects the company’s ability to grow across its core markets while maintaining strict risk selection standards. The underlying growth was supported by targeted expansion in specialty segments including QBE Re, cyber insurance, and Lloyd’s portfolios, though this was partially offset by deliberate underwriting actions in accident and health lines. The average renewal premium rate increase moderated to 0.3% from 2.1% in the prior half, indicating that rate conditions have softened in certain lines such as property, even as the company maintains that rate adequacy remains supportive across most of its portfolio.

The insurer’s capital position remains robust, with the APRA PCA multiple standing at 1.82x, comfortably above its target range of 1.6x to 1.8x. Management completed a $450 million on-market share buyback in April, signalling confidence in the capital position and commitment to returning value to shareholders. The interim dividend increased to 33 Australian cents per share, representing a 6% increase in AUD terms, with a payout ratio of 33% of adjusted net profit after tax.

Investment performance continues to benefit from the supportive interest rate environment, delivering a total return of 2.3%, while claims management showed discipline with catastrophe costs remaining below the allowance and favourable prior-year reserve development providing an additional tailwind. These factors, combined with net insurance revenue growth of 4%, enabled the insurance operating result to increase by 8% to $691 million.

The company has initiated several strategic initiatives aimed at improving operational efficiency and positioning for sustainable growth. AI-enabled algorithmic underwriting capabilities have been deployed for complex specialty risks, reducing quote-to-bind times. A new primary insurance offering launched in Bermuda signals the company’s commitment to expanding its presence in strategic reinsurance hubs. Recent leadership transitions, including the appointment of Yasmin Allen as Group Board Chair and Sue Houghton’s retirement as CEO of Australia Pacific, represent a generational shift in governance.

For the full year, management maintains guidance for a combined operating ratio of approximately 92.5% and mid-single-digit gross written premium growth on a constant currency basis. Investors should monitor divisional performance trends in accident and health, where ongoing challenges persist, and track the execution of capital efficiency initiatives planned for the second half, including the announced sale of the Trade Credit business alongside a loss portfolio transfer.

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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