QBE Insurance Group Limited (ASX: QBE), a prominent global insurer offering a diverse range of commercial, personal, and specialty insurance and reinsurance products, has reported a statutory net profit after tax attributable to ordinary equity holders of US$1,033 million for the half year ended 30 June 2026. This represents a 1% increase from the US$1,022 million recorded in the prior corresponding period. The company also announced an interim dividend of 33 Australian cents per share, up from 31 Australian cents previously, which will be 30% franked and paid on 2 October 2026.
The uplift in profit was underpinned by a 10% rise in revenue from ordinary activities, reaching US$11,953 million, and robust gross written premium (GWP) growth of 10% to US$15,137 million (6% on a constant currency basis). This growth was largely driven by targeted rate adjustments across its International and North America divisions. QBE maintained a stable combined operating ratio of 92.8% on a management basis, an indicator of underwriting performance. Catastrophe costs for the period remained below allowance, despite including modest impacts of approximately US$75 million associated with the Middle East conflict, alongside favourable prior year claims development.
Net investment income on a statutory basis stood at US$657 million, compared to US$929 million in the prior period, though on a management basis, excluding risk-free rate impacts, it was a solid US$828 million. The Group’s effective tax rate increased to 24.9%, reflecting a higher earnings contribution from International and Australia Pacific. QBE completed an A$450 million on-market share buyback and its balance sheet remains robust, with the indicative APRA PCA multiple at 1.82x, above the target range. Subsequent to the half-year, QBE entered reinsurance arrangements to de-risk US$1.6 billion of long-tail reserves, incurring an upfront cost of approximately US$80 million before tax, which is expected to provide a capital benefit.
