QBE Insurance Group Limited

QBE reported first-half 2026 gross written premium of $15 billion, up 6% year over year; combined ratio was 92.8%; investment income was around $830 million; adjusted net profit was just over $1 billion, up 4%; and ROE was 17.7%. Chris Killourhy also cited a PCA multiple of 1.82x and an interim dividend of AUD 0.33 per share, implying a first-half payout ratio of around 33%. Management reiterated full-year 2026 guidance for constant-currency gross written premium growth around the mid-single digits, a group combined ratio around 92.5%, and medium-term returns in the 15% plus range.

Andrew Horton framed the half as another strong result and said momentum remains positive, with the business on track for sustainable growth, resilient performance and excellent returns. He emphasized QBE’s portfolio diversification, its ability to connect capital to risk globally, and the strategic shift toward capital-efficient growth after years of portfolio cleanup. He also highlighted technology and AI initiatives, including faster underwriting and claims handling, as a way to improve efficiency and long-term competitiveness.

Chris Killourhy described the half as an excellent start to 2026, with continued benefits from portfolio quality, cat resilience, reserve strengthening discipline and capital optimization. He cited 6% GWP growth to $15 billion, a 92.8% combined ratio, around $830 million of investment income, and $1 billion-plus profit, while noting cat costs of about $450 million, favorable prior year development of around $110 million, and a 25% tax rate. On capital, he pointed to a very strong balance sheet, a PCA multiple of 1.82x, the $450 million buyback, and the announced reinsurance/LPT transaction that should add around 2 points of PCA benefit.

Analysts focused on capital return potential from the newly announced capital relief, with management saying excess capital will first support growth but anything above target will continue to be considered for return, likely assessed around the year-end board process. Questions also centered on QBE Re, where management confirmed the $6 billion premium target by 2030 is an aim they believe is achievable, while stressing that profitability would take precedence if market conditions deteriorate. Other key topics were A&H pricing and U.S. profitability, where management said claims inflation had run ahead of rate last year and that 2026 pricing actions should catch up, plus broker facilities and AI/cyber, where QBE said it keeps underwriting discipline through lead-role control, data visibility and diversification.