QBE Insurance Group has reported a strong 2025 adjusted cash net profit of $2.13 billion, surpassing consensus estimates by 4 per cent. According to Jarden analyst Blake Dowsett, this outperformance was primarily driven by lower catastrophe costs and reserve releases. The company’s reported combined operating ratio (COR) of 91.9 per cent also exceeded expectations. QBE is a multinational insurance company providing a range of general insurance products, including property, casualty, and motor coverage. The company operates across various regions, including Australia, North America, and Europe.
Gross written premiums (GWP) for QBE rose by 7 per cent to $23,959 million, which is 1.4 per cent above consensus forecasts. The company’s final dividend was declared at $1.09 per share. Looking ahead, QBE’s FY26 guidance projects mid-single-digit growth in GWP and a COR target of 92.5 per cent. Dowsett noted that achieving these targets could be challenging due to potential declines in premium rates. He said margin improvements will rely on favourable catastrophe assumptions, reserve management, and effective expense control.
While Dowsett characterised the FY25 earnings beat as being of ‘lower quality’, he emphasized the company’s strong volume execution and continued growth guidance as positive indicators. QBE’s medium-term outlook includes a target of 15 per cent return on equity (ROE) and continued mid-single-digit GWP growth. The company’s stock price reflected the positive news, with shares in QBE trading up 8.3 per cent in afternoon trade.
