QBE Grows Premiums 7%, Achieves 19.8% ROE and Raises Dividend in 2025

Strong Financial Momentum in a Complex Environment

QBE Insurance Group Limited has delivered a standout performance for the year ended 31 December 2025, exceeding its financial plan amid a challenging global backdrop. The insurer reported a 7% increase in gross written premium to US$23.96 billion, driven by organic growth across its North America and International divisions, alongside portfolio optimisation efforts that have sharpened its focus on core businesses.

The combined operating ratio (COR), a key measure of underwriting profitability, improved notably to 91.9% from 93.1% in 2024, marking QBE’s strongest result in several years. This improvement was underpinned by catastrophe costs that remained comfortably below allowance for the third consecutive year, despite significant global insured losses exceeding US$100 billion.

Profitability and Shareholder Returns Reach New Heights

Net profit after tax rose to US$2.16 billion, up from US$1.78 billion the previous year, with an adjusted return on equity (ROE) of 19.8%; the highest in over a decade. This robust profitability supported a 22 Australian cents increase in the full-year dividend to 109 Australian cents per share, reflecting the Board’s confidence in the company’s financial strength and outlook.

In addition to the dividend boost, QBE announced a A$450 million on-market share buyback program, commenced in December 2025 and expected to complete during 2026. This move underscores the company’s disciplined capital management approach and commitment to delivering value to shareholders.

Strategic Execution and Risk Management Drive Resilience

QBE’s performance was supported by its ongoing portfolio optimisation, which has reduced exposure to volatile property catastrophe risks, particularly in North America, where the run-off of non-core lines is nearing completion. The insurer’s underwriting discipline remains a cornerstone, with granular monitoring of profitability by product and geography ensuring sustained margin adequacy despite moderating premium rate increases.

Investment income remained robust at US$1.63 billion, delivering a 4.9% return. The portfolio’s conservative positioning, with 85% in high-quality fixed income and 15% in risk assets, helped navigate periods of financial market volatility driven by geopolitical and economic uncertainty.

Innovation, Sustainability, and Modernisation

QBE continues to invest in digital transformation and artificial intelligence to enhance underwriting efficiency and customer experience. The launch of its global brand proposition, ‘At the heart of it’, and the Cyber Protect product campaign exemplify its customer-centric approach.

On sustainability, QBE published its first climate mandatory report aligned with Australian Government legislation and strengthened its governance around climate-related risks. The company also expanded its social impact initiatives through the QBE Foundation, partnering to support climate-vulnerable communities and purpose-driven businesses.

Outlook: Sustained Growth and Strong Returns

Looking ahead to 2026, QBE expects mid-single-digit growth in gross written premium and a combined operating ratio around 92.5%, supported by a catastrophe allowance of US$1.13 billion and an expense ratio near 12%. The company introduced medium-term guidance targeting an adjusted ROE of 15%+, assuming investment returns above 3% and a tax rate around 25%.

New leadership in the finance function, with Chris Killourhy appointed Group CFO in January 2026, signals continuity and strength in executing QBE’s strategic priorities. The insurer’s diversified portfolio, disciplined underwriting, and capital management position it well to navigate evolving risks and market cycles.