QBE Insurance's Interim Profit Tops Estimates on Solid Premium Growth and Lower Claims

QBE Insurance reported a stronger-than-expected interim profit of $997 million, driven by solid premium growth in its international and North American operations, and lower-than-anticipated catastrophe claims. The insurer's gross written premiums grew 5.9% to $13.82 billion, while its combined operating ratio improved to 92.8%. However, investors remain cautious about the sustainability of certain profit drivers, such as lower claims and prior-year reserves.

Australia's QBE Insurance Group (QBE.AX) has reported a robust interim profit for the first half of fiscal 2025, driven by significant growth in premiums and lower-than-anticipated catastrophe claims. The insurer's adjusted net profit after tax (NPAT) stood at $997 million, surpassing expectations and marking a 28% increase from the same period last year [1].

QBE's gross written premiums grew by 5.9% to $13.82 billion, a testament to the company's strong performance in its international and North American operations. This growth was accompanied by a reduction in catastrophe-related claims, which amounted to $479 million, down from $527 million the previous year. The company's combined operating ratio (COR) improved to 92.8% from 93.8% last year, reflecting enhanced underwriting profitability [1].

Despite these positive developments, investors remained cautious about the sustainability of certain profit drivers, such as lower claims and the inclusion of prior-year reserves. QBE's shares closed 8.8% lower at A$21.39 apiece, their lowest level since early May, reflecting these concerns [1].

The Sydney-based insurer also declared an interim dividend of 31 Australian cents per share, up from 24 Australian cents last year. This dividend was a result of the company's strong financial performance and its commitment to shareholder returns.

QBE reiterated its forecast for constant currency gross written premiums growth in mid-single digits for the full financial year 2025. The company's resilience in the face of rising claims related to natural catastrophes and global economic headwinds underscores its ability to navigate challenging market conditions [2].

References:
[1] https://www.reuters.com/world/asia-pacific/qbe-insurances-interim-profit-tops-estimates-premium-growth-lower-claims-2025-08-07/
[2] https://www.reuters.com/world/asia-pacific/australian-insurer-qbe-beats-interim-profit-estimates-premium-growth-lower-2025-08-07/