Sydney, June 19, 2026, 05:05 (AEST)
- QBE ended Thursday at A$24.01, gaining 1.9%. The S&P/ASX 200 dropped 0.6%.
- The insurer has redeemed US$524.124 million in 5.875% subordinated notes that were set to mature in 2046.
- QBE has just come off a €500 million Tier 2 deal. The company reports next on August 14.
QBE Insurance Group shares jumped on Thursday after the company redeemed a US$524.124 million subordinated debt issue. The stock was last at A$24.01, up 44 cents. The broader Australian market slipped, with the benchmark index down 0.62% to 8,911.1. The ASX cash market was yet to open for Friday when the data was set.
QBE is shifting the make-up of its securities that figure in its regulatory capital. Subordinated debt sits junior to senior creditors if the company runs into trouble. Tier 2-eligible notes give insurers some extra loss absorption cushion.
QBE traded solidly Thursday, but there’s no clear sign the redemption news drove gains. The stock opened at A$23.49 and peaked at A$24.04 on turnover of around 4.2 million shares. Most of the move happened before the 11:42 a.m. filing. After that, shares put on just about 1.5 cents to the close.
QBE has redeemed the last of its 5.875% fixed-rate subordinated notes maturing in 2046 as of June 17. The company said the securities, which were issued in 2016, are now cancelled and will be delisted from the Singapore Exchange’s official list.
QBE’s repayment comes after it priced €500 million in new fixed-rate resetting subordinated notes this month. The notes mature in June 2037 and carry a 4.29% coupon to the June 2032 optional redemption. QBE has said proceeds will go toward Tier 2 capital as it keeps working on capital management.
The headline coupon is lower than the 5.875% on the old notes, which looks good on paper. But this isn’t a straight cost cut. The two deals aren’t matched on currency, tenor, or reset structure. QBE’s really just shuffled its capital structure, not booked a big instant gain to earnings.
The operating business is still the main contributor. Gross written premium climbed 7% in the first quarter on a constant-currency basis. Average rates moved up about 2%. QBE stuck to its 2026 outlook for mid-single-digit premium growth and a combined operating ratio near 92.5%. That ratio compares claims and operating costs to premium income. Anything under 100% is an underwriting profit.
QBE chief Andrew Horton told investors at the February results, “Profitability remains attractive across the majority of lines.” The group posted a 21% jump in 2025 net profit to US$2.157 billion, citing favourable catastrophe claims and better investment income. Shares have been strong, as investors bet QBE will keep its underwriting discipline. ASX Announcements
The broader sector has been supportive too. Jefferies said this week Australian general insurers are set up to do better than the market in a bigger sell-off, pointing to steady demand and cash flows. The broker kept its Buy on QBE and raised its price target to A$26.25 from A$25.55. It also put QBE with Insurance Australia Group and Suncorp in its sector call.
QBE’s debt move leaves its main threats in place. Bigger catastrophe hits, softer commercial insurance rates or higher claims inflation could all push its combined ratio past guidance. Fitch gave the new Tier 2 notes a BBB+ rating and sees QBE’s financial-leverage ratio hitting 26% on a pro-forma view, up from 24% at 2025’s end, so capital discipline stays key with the old notes redeemed.
QBE’s half-year numbers land August 14, with the first-half period closing June 30. Investors are looking for updates on premium rates, catastrophe costs and fixed-income portfolio returns.
