Australia-headquartered global insurer QBE has disclosed a modest increase in insurance profit for H1 2026, with underwriting performance remaining resilient despite higher underlying claims costs and rising expenses.
The firm’s insurance profit rose to $1.206 billion from $1.157 billion in H1 2025, while its insurance operating result increased to $691 million, up from $639 million.
QBE’s gross written premiums (GWP) climbed to $15.14 billion in H1 2026, compared with $13.82 billion a year earlier.
QBE said ex-rate GWP growth was 6%, or 4% excluding Crop and exited portfolios, with growth of 11% in International and 4% in North America. Australia Pacific GWP was down 1%.
Despite the growth in premiums, the firm’s combined operating ratio remained at 92.8%, unchanged from the prior-year period.
The ex-catastrophe claims ratio increased slightly to 61.8% from 61.5%, reflecting claims inflation, particularly in Accident & Health, as well as large individual events.
Catastrophe experience was more favourable in H1 2026, with the firm’s catastrophe claims ratio improving to 4.7% from 5.4%.
QBE’s net cost of catastrophe claims fell to $445 million, below both the prior-year figure of $479 million and the first-half catastrophe allowance of $517 million.
The Australian firm also reported $403 million of prior accident-year claims development in H1 2026, compared with $360 million in H1 2025.
This included favourable development of the central estimate of $108 million, versus $91 million in the prior period.
Reinsurance income increased to $1.77 billion from $1.52 billion, while reinsurance expenses rose to $2.41 billion from $2.06 billion.
QBE’s insurance revenue increased to $11.95 billion, while net insurance revenue reached $9.55 billion, up from $8.81 billion.
The firm’s overall net profit after tax was $1.033 billion, compared with $1.022 billion a year earlier.
Andrew Horton, QBE’s CEO, commented, “QBE delivered solid performance in the period and is on track to deliver our full year outlook. We continue to see good momentum in the business, supported by disciplined underwriting and a continued focus on portfolio optimisation.
“Overall rate adequacy remains favourable across most portfolios, supporting continued profitable growth. We continue to expect a Group combined operating ratio of ~92.5% for 2026, with constant currency gross written premium growth in the mid-single digits.
“Over the medium term, we expect a continuation of sustainable growth, and a 15%+ adjusted return on equity. The supportive interest rate environment is expected to continue to underpin strong investment returns.”
