QBE Delivers Solid 1H25 Results, On Track for Full Year
Key points
- Statutory net profit after tax of $1,022 million, up from $802 million in 1H24
- Adjusted net profit after tax of $997 million, resulting in an adjusted return on equity of 19.2%
- Combined operating ratio improved to 92.8% from 93.8% in the prior period
Full summary
QBE Insurance Group Ltd announced its results for the half year ended 30 June 2025, reporting a solid performance. Statutory net profit after tax increased to $1,022 million from $802 million in the prior period, while adjusted net profit after tax rose to $997 million from $777 million, resulting in an adjusted return on equity of 19.2%. Gross written premium growth of 6%, or 8% excluding exited portfolios, was supported by continued organic growth in a number of focus areas. The Group's combined operating ratio improved to 92.8% from 93.8% in the prior period, driven by strong underwriting performance within the core business, the progressive run-off of non-core portfolios, and favourable prior year development. Investment income remained strong, with total investment income of $788 million equating to a return of 2.4%. QBE's indicative regulatory Prescribed Capital Amount (PCA) multiple of 1.85x remained well positioned relative to the Group's 1.6-1.8x target range. The Board has declared an interim dividend of 31 Australian cents per share, representing an interim dividend payout ratio of 30% of adjusted net profit after tax.
Guidance
QBE expects 2025 constant currency gross written premium growth in the mid-single digits, and a combined operating ratio of approximately 92.5%. The company also reported a 1H25 exit core fixed income yield of 3.8%.
Outlook
QBE remains on track to meet its full year targets, reflecting continued execution of its strategy and a sustained focus on building a high-quality, consistent business. The company's approach to portfolio optimisation has matured, moving beyond remediation to active portfolio management that balances diversification with returns, delivering tangible financial benefits and driving future performance.
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