QBE Insurance Group Limited

QBE reported first-half 2026 gross written premium of $15 billion, up 6% year over year, with underlying growth closer to 7% after noncore exits. The combined ratio was 92.8%, adjusted net profit was just over $1 billion, up 4%, and return on equity was 17.7% (described as almost 18%). Investment income was around $830 million, up 5% versus the prior period, and the interim dividend was AUD 0.33 per share, up 6%; the first-half payout ratio was around 33%. Cat costs were around $450 million, about $30 million lower than the prior period, and favorable prior-year development was around $110 million. Management kept full-year guidance unchanged: constant-currency GWP growth around the mid-single digits, a group combined ratio around 92.5%, and medium-term ROE in the 15% plus range.

Andrew Horton struck a confident tone, repeatedly describing the period as another strong result and saying momentum in the business is positive. He emphasized that QBE is now focused on high-quality, capital-efficient growth after finishing a series of portfolio optimization actions, and highlighted technology and AI as a way to improve underwriting and claims efficiency. He also framed the company’s reinsurance and facilities businesses as structural growth engines, saying QBE Re is an important profit pool and that QPS offers data and diversification advantages.

Christopher Killourhy highlighted a strong first half with ROE of 17.7%, GWP up 6% to $15 billion, a 92.8% combined ratio, and investment income of around $830 million at a 4.6% annualized return. He pointed to cat performance below allowance, favorable prior-year development of around $110 million, and a PCA multiple of 1.82x, or 1.78x after the interim dividend. He also noted the group expense ratio was 12.4% versus 12.1% a year ago, said the full-year expense ratio target remains 12%, and detailed capital actions including a $450 million buyback, an expected around $70 million pretax gain on the trade credit/surety sale, and an LPT with a Day 1 pretax cost of around $80 million that should add about 2 points to PCA.

Analysts focused on capital return potential, growth in QBE Re and broker-led facilities, crop reserves, A&H inflation, U.S. specialty profitability, property pricing, and the new LPT. Management said the reported 6-point capital benefit is a combination of the LPT and a cat bond, but stressed that excess capital would first support growth and then be returned if still above target. On QBE Re, Andrew Horton said the $6 billion premium goal by 2030 is an achievable aim, while Chris Killourhy said property excess-of-loss pressure has not yet translated into broader attachment point or terms-and-conditions deterioration. On A&H, Horton said claims inflation came in closer to 30% than the 20% pricing increase they had expected, and on the U.S. he acknowledged specialty and financial lines were still dragging the combined ratio above 100% ex-crop. Management also said the LPT is part of the end of the remediation program, though they would not rule out future transactions if they helped remove volatility and release capital.