International insurer and reinsurer QBE has announced its financial results for the full year 2025, reporting a net profit after tax of $2,157 million and an improved combined operating ratio of 91.9%.
FY 2025 net profit after tax increased from $1,779 million reported in FY24.
On an adjusted basis, net profit after tax rose to $2,132 million, delivering an adjusted return on equity of 19.8%.
QBE surpassed its own guidance for mid-single-digit growth, recording gross written premiums (GWP) of $ 23.9 million for FY25, a 7% growth compared to FY24, or 8% when excluding exited portfolios.
This growth was driven by targeted organic expansion across several classes in North America and International. Growth focus areas included QBE Re, A&H, Portfolio Solutions and Cyber.
Excluding Crop, gross written premium growth was 6%, and 8% on further excluding exited portfolios. Ex-rate growth was 6% for the year, or 5% excluding Crop, and 7% on further excluding the non-core run-off.
At 91.9%, the Group’s FY25 combined operating ratio improved from 93.1% in the prior year, supported by favourable catastrophe experience.
FY25’s CoR was “comfortably ahead” of QBE’s ~92.5% guidance, signalling increased balance and breadth of performance across the business, the re/insurer noted.
A major contributor to the result was a significant reduction in catastrophe costs. The net cost of cat claims fell to $751 million or 4.1% of net insurance revenue, a substantial improvement from $1,048 million or 5.9% in the prior year.
The result was significantly below the FY25 catastrophe allowance of $1,160 million.
Conversely, the ex-cat claims ratio saw a slight uptick to 59.8%, increasing from 59.7% in the prior year. When excluding risk adjustment and Crop, the ratio rose from 53.0% to 54.9%, which the company attributed to elevated large loss activity and shifts in the business mix.
Strong performance continued with total investment income of $1,633 million and a return of 4.9%, supported by excellent returns across both core fixed income and risk asset portfolios. The result was broadly stable compared to $1,488 million or 4.9% in the prior period.
Andrew Horton, QBE Group CEO, said: “QBE delivered strong performance in 2025, exceeding our financial plan for the year. Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns.”
Horton added: “Driven by our purpose to enable a more resilient future, 2025 has been a year of meaningful progress for QBE. Underpinned by disciplined execution of our strategic priorities, our efforts to rebalance the portfolio and stabilise performance have delivered tangible improvements, and the business has built strong momentum.
“While competition has increased in some classes, QBE remains committed to our long-term strategy, underwriting discipline, and sustaining strong performance.” “We continued to deliver on our Sustainable Growth priority in the period. This is supported by enterprise alignment around our priority businesses, and reinforced by deep broker partnerships and leading regional franchises.
“Our Portfolio Optimisation efforts have delivered meaningful change over the last few years. The exit of our North America non-core portfolio progressed well and broadly concluded this year, leaving us with a more focused business with substantially less property catastrophe exposure.” “Our Modernisation priority has been reframed as Pace and Efficiency in support of our outcome-driven modernisation programs. Our continued investment in digital, cloud and Al capabilities has supported the ongoing refinement of our underwriting AI tools across the business.”
Looking ahead, for the full year 2026 QBE aims to reach a combined operating ratio of ~92.5% with constant currency GWP growth in the mid-single digits.
In the medium term, the re/insurer looks to achieve a 15%+ Adjusted return on equity, and constant currency GWP growth in the mid-single digits.
