Sydney, May 11, 2026, 06:03 (AEST)
QBE Insurance Group kept its 2026 outlook after first-quarter gross written premium rose 11% to US$9.2 billion, giving the Sydney-based insurer a stronger top line even as investors looked past the headline number. The company still expects mid-single-digit premium growth, on a constant-currency basis, and a group combined operating ratio of about 92.5% for the year.
The update matters now because the pricing cycle is losing some force. QBE reported group premium rate increases of about 2% in the quarter, while flagging competitive pressure in commercial property and at Lloyd’s, the specialist insurance market where global carriers write complex risks.
The stock showed that tension. QBE shares traded as high as A$23.08 on Friday but closed down 1.55% at A$22.30, even after the company reaffirmed guidance and reported higher premiums.
Gross written premium, or GWP, is the total premium written before deductions such as reinsurance. The combined operating ratio measures claims and expenses against premiums; a ratio below 100% usually points to an underwriting profit, before investment income is considered.
QBE said premium growth was 7% on a constant-currency basis. Ex-rate growth, which strips out price increases, was 6% and was helped by North America Crop and several international portfolios; excluding crop and exited lines, growth was 2%, with lower volume in some accident and health portfolios weighing on the quarter.
Chief Executive Andrew Horton told shareholders QBE was “tracking to plan” and had “maintained strong premium growth” in the early months of 2026. He also said QBE had completed its A$450 million buyback last month and would keep returning surplus capital where available. ASX Announcements
Claims are still the swing factor. QBE put net catastrophe claims at about US$300 million for the four months to April, against a first-half catastrophe allowance of US$517 million. It said direct underwriting effects from the Middle East conflict were not material so far, with net claims estimated at about US$60 million and included in the catastrophe figure.
But the forecast is not risk-free. A heavier run of natural disasters, a wider claims impact from geopolitical conflict, or faster softening in premium rates could pressure the 92.5% ratio target; QBE’s own filing said its forward-looking assumptions depend on no material variation in catastrophe claims or premium rates, among other factors.
Investment income gave the quarter some ballast. QBE reported about US$500 million in investment income for the four months to April, helped by a rise in its core fixed-income yield to 4.1% from 3.7% at the end of 2025. Total investment funds under management rose to US$36.1 billion.
The competitive read is mixed. QBE operates across North America, International and Australia Pacific, making it less domestic than peers such as Suncorp and Insurance Australia Group, which are often grouped with QBE in Australia’s general insurance market. That global spread helps diversification, but it also exposes the group to crop, Lloyd’s and commercial property cycles that local-only investors may watch less closely.
At the annual meeting, shareholders backed core board resolutions but rejected three climate-related resolutions. The resolution to amend the company’s constitution drew 5.22% support, while climate-risk disclosure and governance proposals drew 10.86% and 6.53%, respectively.
The meeting also completed a board handover. Mike Wilkins retired as chair and Yasmin Allen took the role, telling shareholders the change was “not a change in direction.” ASX Announcements
QBE’s 2025 numbers remain the background to the market reaction. Wilkins told shareholders the group delivered statutory net profit after tax of US$2.157 billion last year, up 21%, and a full-year dividend of 109 Australian cents per share.
The next fuller test comes in August. QBE said it will release its first-half 2026 result on Aug. 14, when investors will get a cleaner view of whether first-quarter pricing, catastrophe claims and investment income are still lining up with the company’s full-year targets.
