QBE Insurance Group Limited (ASX: QBE) announced a strong half-year performance for the period ended 30 June 2026, revealing a significant increase in adjusted net profit after tax and robust returns on equity. QBE Insurance Group Limited is one of the world’s largest general insurance and reinsurance companies, providing a comprehensive range of insurance products to individuals, businesses, and government entities across various markets. Adjusted net profit after tax reached US$1,033 million, an increase from US$997 million in the prior period. The annualised adjusted return on equity stood at 17.7%, exceeding its medium-term outlook of 15% plus. An interim dividend of A$33 cents per share was declared, representing a 33% payout ratio.
Operational growth remained solid, with gross written premium (GWP) increasing by 6% on a constant currency basis, in line with its mid-single-digit outlook. This growth was supported by diverse opportunities across its business. QBE maintained a disciplined approach to risk selection and rate adequacy, contributing to a combined operating ratio (COR) of 92.8%. This figure keeps the company on track to achieve its full-year 2026 outlook of approximately 92.5%. The period benefited from sound risk settings, favourable prior-year development, and catastrophe costs comfortably below allowance.
Investment performance was strong, with total investment income of US$828 million, a return of 2.3%. This was supported by solid returns from both core fixed income and risk asset portfolios. QBE maintained a strong capital position, with an indicative APRA PCA multiple of 1.82x at 30 June 2026, within the Group’s 1.6 – 1.8x target range. To enhance capital efficiency, the company completed an A$450 million on-market share buyback in April and announced further initiatives for 2H FY26, including the sale of its Trade Credit business and a loss portfolio transfer. Improving capital efficiency is a primary focus for the year ahead.
