QBE Insurance Group Limited

QBE reported gross written premium of $15 billion, up 6% year over year, and adjusted net profit of just over $1 billion, up 4%. The combined ratio was 92.8% versus the prior period, with catastrophe costs around $450 million, favorable prior-year development of around $110 million, and investment income of around $830 million. Return on equity was 17.7%, the dividend was AUD 0.33 per share, the payout ratio was around 33%, and the APRA PCA multiple was 1.82x. Management reiterated full-year guidance for constant-currency GWP growth in the mid-single digits and a group combined ratio around 92.5%, while saying medium-term guidance remains mid-single-digit growth and returns in the 15% plus range.

Andrew Horton framed the half as evidence that QBE’s portfolio reset is behind it and that the company is now focused on high-quality, capital-efficient growth. He emphasized durable mid-single-digit premium growth, returns in the 15% plus range, and a stronger use of technology and AI, citing underwriting automation and claims-processing gains across several businesses. He also highlighted broad structural demand in commercial P&C, especially in infrastructure, cyber, data centers, energy security, and other specialty areas.

Chris Killourhy said the company delivered a very strong return on equity of 17.7% and that the result reflected better portfolio quality, cat resilience, reserve strengthening discipline, capital optimization, and efficiency efforts. He pointed to GWP of $15 billion, a 92.8% combined ratio, investment income of around $830 million, a 25% tax rate, and a very strong capital position with a PCA multiple of 1.82x. He also detailed capital actions including the $450 million buyback, the trade credit and surety sale expected to close in the second half with an anticipated pretax gain of around $70 million, and the newly announced LPT covering around $1.6 billion of reserves with an immediate PCA benefit of around 2 points.

Analysts focused on capital returns, QBE Re growth, broker facilities, cyber, crop, A&H, U.S. profitability, reserves, and the new LPT. Management said the combined capital benefit from the LPT and cat bond work was about 6 points, but excess capital would first support growth and then be returned if still above target. On QBE Re, management said the $6 billion by 2030 goal is an achievable aim, while broker facilities were described as well-controlled, diversified, and profitable in the 80s combined ratio range. On U.S. A&H and the broader specialty book, management said claims inflation ran ahead of rate in the prior year, that the market is now broadly moving together on pricing, and that some U.S. specialty lines such as transaction liability also pressured results; on reserves, management said releases remain supported by their conservative three-year approach, while some international books continue to need strengthening.