QBE’s net profit hit $1bn in H1’25, GWP grew 6%

Australian insurer QBE has reported a statutory net profit after tax of $1.02 billion for the first half of 2025, a 27.4% increase from $802 million in the same period a year earlier.

Adjusted net profit after tax was $997 million, up from $777 million in H1’24, resulting in an adjusted return on equity of 19.2%.

Gross written premium rose 6% to $13.8 billion from $13.1 billion, supported by continued organic growth in several focus areas.

Net insurance revenue increased to $8.8 billion from $8.5 billion.

The company’s combined operating ratio improved to 92.8% from 93.8% in H1’24, driven by favourable central estimate development and catastrophe experience, following efforts to strengthen portfolio resilience and reserve stability.

This comprised a net claims ratio of 62.8%, a net commission ratio of 17.9%, and an expense ratio of 12.1%, compared to 64.2%, 17.6%, and 12.0%, respectively, a year earlier.

The net cost of catastrophe claims of $479 million, or 5.4% of net insurance revenue, reduced from $527 million, or 6.2%, in the prior period. The result was comfortably below the Group’s first-half catastrophe allowance of $549 million.

Prior accident year claims development totalled $360 million, up from $282 million, including favourable development of the central estimate of net outstanding claims by $91 million, compared with adverse development of $18 million in the prior period.

Strong investment performance continued, with total investment income of $788 million equating to a return of 2.4%, compared to $733 million, or 2.4%.

Andrew Horton, Group CEO of QBE, said, “QBE delivered a solid result in the first half of 2025 and remains on track to meet our full year targets. This reflects continued execution of our strategy and a sustained focus on building a high-quality, consistent business.

“Ongoing focus and execution against our strategic agenda continues, reflecting our ambition to deliver more predictable performance and sustainable long-term growth.

“Our approach to portfolio optimisation has matured, moving beyond remediation to active portfolio management that balances diversification with returns. The balance we have achieved across product classes and geographies is now delivering tangible financial benefits and will continue to drive future performance.

“Our purpose of enabling a more resilient future is brought to life every day by our teams, our partners, and the customers and communities we support. The extreme weather events witnessed across the globe this period have had a profound impact on many communities. QBE remains focused on supporting affected customers, and we continue to implement new initiatives to help deliver the support our customers need.”