QBE Insurance Group Limited engages in underwriting general insurance and reinsurance risks in the Australia Pacific, North America, and internationally. The company offers commercial and domestic property, agriculture, public/product liability, motor and motor casualty, professional indemnity, workers' compensation, accident, health, financial and credit, and other insurance products, as well as marine, energy and aviation insurance products. It also manages Lloyd's syndicates, as well as provides investment management services. The company was founded in 1886 and is headquartered in Sydney, Australia.
H1 2026 results
QBE Insurance is held in the ASX Growth Portfolio. The company reported half year results before the open on Friday 14 August.
Gross written premium rose 10 percent to US$15,137 million, or 6 percent in constant currency and 7 percent excluding exits from non-core lines. Statutory net profit after tax rose 1 percent to US$1,033 million and adjusted profit rose 3.6 percent. The combined operating ratio held flat at 92.8 percent on a management basis, and adjusted return on equity reached 17.7 percent against a medium-term target of 15 percent or better.
| Metric | H1 2026 | H1 2025 |
| Gross written premium | US$15,137m | +6% constant currency |
| Combined operating ratio | 92.8% | flat |
| Statutory NPAT | US$1,033m | +1% |
| Interim dividend | A33c | +6% |
The composition of that ratio is what the market picked over. Catastrophe claims of US$450 million came in below allowance, including about US$75 million of Middle East costs, with a further US$50 million of Middle East large losses sitting outside the catastrophe line. Prior accident year development was favourable at US$398 million, or 4.2 percent of net earned premium, with North America contributing 5.7 percent and Australia Pacific 9.9 percent. Strip both out and the underlying ratio sits above the 92.5 percent full year target, which implies a meaningful second half improvement is required.
Divisional performance diverged. North America remained the laggard at 97.3 percent, barely changed from 97.2 percent. International improved to 91.6 percent from 92.5 percent. Australia Pacific deteriorated to 88.2 percent from 86.8 percent on the January bushfires, though it remains the best of the three.
Investment income fell on a statutory basis to US$657 million from US$929 million, while the management basis measure rose 5.1 percent to US$828 million, a 2.3 percent half year return with an exit yield of 4.1 percent.
QBE lifted the interim dividend 6 percent to 33 Australian cents, franked at 30 percent, on a 33 percent payout ratio. The APRA prescribed capital amount multiple sits at 1.82 times, above the 1.6 to 1.8 times target range, after completing a A$450 million buyback in April. After the balance date the company entered a loss portfolio transfer covering US$1.6 billion of long-tail reserves at an upfront pre-tax cost of about US$80 million.
Full year guidance was reaffirmed without change: a combined operating ratio around 92.5 percent, mid-single-digit constant currency premium growth and adjusted return on equity of 15 percent or better. Management expects the second half to benefit from the reversal of an accident and health onerous contract provision and a more balanced Middle East outcome.
Andrew Horton said underwriting performance “has been excellent, notwithstanding the growing geopolitical instability across the world”, and that QBE has entered its 140th year with good momentum. Shares fell roughly 5 percent on the day, with brokers pointing to the underlying combined ratio and an insurance profit that came in below expectations.
