QBE Insurance Group (QBE) H2 2025 earnings summary

Executive summary

• Achieved record post-tax profit of $2.13 billion, EPS up 25% year-over-year, and ROE at 19.8%, exceeding all guidance and targets.

• Gross written premium (GWP) grew 7% to $24 billion, exceeding mid-single-digit guidance.

• Combined ratio improved to 91.9%, outperforming guidance and prior year.

• Maintained a high-quality, diversified business model, well-positioned for industry opportunities.

• Strong investment income of $1.6 billion, with a 4.9% return.

Financial highlights

• GWP growth of 7% headline, 8% excluding crop and exits; net insurance revenue declined 6% due to increased cessions in Crop.

• Adjusted net profit after tax increased 23% to $2.13B; adjusted EPS (diluted) up 25% to A$2.17.

• Final dividend of AUD 0.78, full-year AUD 1.09, up 25% year-over-year, with a 50% payout ratio.

• Expense ratio at 12.4%, with expense growth moderating to 5%.

• Book value per share (ex-AT1) up 18% in USD terms to A$11.6.

Outlook and guidance

• FY26 outlook targets mid-single-digit GWP growth, combined ratio around 92.5%, and ROE above 15%.

• Expense ratio expected to improve to 12% in 2026 and glide lower over the medium term.

• No explicit reserve releases factored into guidance; ROE guidance assumes 80% POA on cat budget.

• Investment returns expected above 3%, with market conditions supportive and 90% of GWP at or above target returns.

• Portfolio rebalancing and targeted growth in high-margin areas like QBE Re, Portfolio Solutions, and cyber.