QBE Insurance Group estimates its exposure to Middle East conflict-related claims at around US$60m, which is modest relative to the insurer’s earnings and capital strength, Fitch Ratings said on Wednesday.
The ratings agency made the comments while affirming QBE Insurance Group’s Long-Term Issuer Default Rating (IDR) at ‘A’, and keeping the Insurer Financial Strength (IFS) ratings of its core subsidiaries at ‘AA-’. The outlook on all ratings remains stable, reflecting continued strength in earnings, capitalisation and business profile.
Fitch noted that QBE’s profitability continued to improve in 2025, supported by disciplined underwriting and steady investment returns. The insurer’s combined ratio improved to 90% in 2025 from 91% a year earlier, while return on equity (ROE) rose to 19% from 17% in 2024.
QBE’s net income increased to US$2.2bn, driven by a stronger insurance service result. Insurance revenue rose by 5% to US$23bn in 2025, with all segments reporting an underwriting profit.
Fitch said these metrics compare strongly with the criteria guidelines for the ‘AA’ IFS Rating category.
The agency also pointed to lower earnings volatility in recent years, helped by reserve actions and exits from weaker business lines.
QBE’s capitalisation remained a key strength as its Fitch Prism score stayed at “Extremely Strong” supported by continued capital accumulation. The regulatory prudential capital adequacy (PCA) coverage ratio held at 1.87x, above QBE’s target range.
The group expanded risk transfer tools, securing US$650m in catastrophe bonds and a US$550m casualty sidecar. It also launched an A$450m share buyback and issued A$500m AT1 capital in 2026.
Fitch-calculated financial leverage rose to 24% in 2025, up from 20% a year earlier, following capital management actions including debt redemption and new issuance.
Fitch maintained QBE’s “favourable” company profile, citing its large global footprint across 26 countries and diversified business mix across commercial (42%), speciality (29%), reinsurance (13%), crop and lenders’ mortgage insurance (11%) and consumer lines (5%).
The group’s exit from its North American middle-market business is also largely complete, with a sharper focus on core, higher-return segments.
