QBE Insurance Group reported net profit of US$1.02bn for the six months ended June 30 2025, up 27% from US$802m in the prior period, as the Australian insurer posted improved underwriting performance and kept catastrophe costs below expectations.
Gross written premiums (GWP) increased 6% to US$13.82bn, with continued momentum in International and North America offsetting the impact of exited lines. The insurer’s combined operating ratio improved to 92.8% from 93.8% in the prior period.
Catastrophe costs totalled US$479m or 5.4% of net insurance revenue, down from US$527m or 6.2% in the prior period. The result remained comfortably below QBE’s first-half catastrophe allowance of US$549m despite including what QBE described as “the largest US wildfires on record in California.”
Australia Pacific faced a 1% decline in gross written premium to US$2.58bn on a constant currency basis, led by further reductions in consumer portfolios and greater competition in commercial lines. Despite the premium decline, the division delivered a combined operating ratio of 86.8%, a significant improvement from 95.6% in the prior period, driven by lower catastrophe claims and favourable prior accident year reserve development.
The International division generated the strongest premium growth with gross written premium up 11% on a constant currency basis to US$6.41bn. QBE attributed the growth to strong performance across International Markets, QBE Re and Europe, with organic growth led by two new facilities, including Ki, an algorithmic underwriting business.
However, International reported a combined operating ratio of 92.5% compared with 89.2% in the prior period. QBE said the result reflected elevated catastrophe and large loss activity, including the California wildfires and large claims within the International Markets portfolio, while describing profitability across both insurance and reinsurance portfolios as “relatively solid.”
North America posted gross written premium growth of 4% to US$4.85bn, with continued growth across the core platform offsetting drag from exited lines. Excluding exited lines, gross written premium increased 10%. The division’s combined operating ratio improved to 97.2% from 97.5%, supported by reduced strain from non-core lines and favourable prior accident year development in short-tail lines.
QBE’s balance sheet remains robust with an indicative APRA PCA multiple of 1.85 times, compared to its 1.6-1.8 times target range. Debt to total capital increased to 25.2% from 19.9% at December 31 2024, primarily due to Tier 2 issuance during the period to replace Additional Tier 1 capital notes totalling US$900m.
These strong financial results underscore QBE’s strategic commitment to digital innovation and market expansion, as evidenced by the insurer’s recent launch of its first fully digital personal accident product through an exclusive bancassurance partnership with virtual bank Mox in Hong Kong, and its planned introduction of QCyberProtect cyber insurance in New Zealand by late 2025.
