QBE Confirms 6% Premium Growth and Launches A$450m Buyback

Strong Premium Growth Amid Portfolio Adjustments

QBE Insurance Group has delivered a robust performance in the first nine months of FY25, reporting a 6% increase in gross written premiums (GWP) on a constant currency basis. This growth was achieved despite a $250 million drag from the run-off of non-core lines in North America, highlighting sustained momentum particularly across its International and North America segments. Excluding these run-offs and crop insurance, premium growth was even stronger at 7%, underscoring the company’s ability to expand organically in competitive markets.

Underwriting and Investment Performance Support Outlook

QBE reiterated its FY25 outlook, expecting a combined operating ratio of approximately 92.5%, a key measure of underwriting profitability. The company anticipates return on equity to remain in the high teens, supported by disciplined underwriting and favourable investment returns. Catastrophe claims have been lower than expected in the second half of the year, with net costs around $700 million against an allowance of $950 million for the first ten months, marking the third consecutive year of catastrophe cost favourability.

Investment performance remained solid, with a stable core fixed income yield of 3.7% and strong returns from risk assets including equities and enhanced fixed income. Total funds under management increased to $34.8 billion, with risk assets comprising 15% of the portfolio, reflecting a balanced approach to growth and risk.

Capital Management and Shareholder Returns

In a move signaling confidence in its capital position, QBE announced an on-market buyback of ordinary shares totaling A$450 million, to be executed over 2026. This buyback will be funded by surplus capital and is expected to increase total shareholder distributions to around 65% of earnings, up from an estimated 50% dividend payout ratio for FY25. This active capital management approach aligns with QBE’s medium-term strategy to optimise shareholder returns while maintaining financial flexibility.

Looking Ahead to FY26

Planning for FY26 is well advanced, with QBE anticipating further premium growth and maintaining a combined operating ratio target of approximately 92.5%. The company expects improved portfolio balance and earnings visibility to support continued profitability across most lines. The upcoming FY26 guidance will provide more clarity on crop insurance trends and renewal pricing, key factors for the year ahead.

Overall, QBE’s update reflects a company confident in its strategic direction, balancing growth with disciplined underwriting and capital management to deliver sustainable returns.