Australia’s QBE beats profit estimates, maintains annual outlook

Australia's QBE Insurance reported surpassing first-half profit estimates and holding its annual outlook on Friday. Enhanced premium growth and reduced catastrophe costs enabled the insurer to offset Middle East conflict-related claims. QBE's underwriting resilience and global diversification contributed to its strong performance, setting it apart in a mixed Australian insurance earnings season.

Rival IAG announced lower-than-expected full-year cash earnings, while Suncorp posted cash earnings slightly above market expectations. QBE, active in 27 countries including the United States, projected mid-single-digit global premium growth and a combined operating ratio around 92.5 percent for 2026. The company reported a 6 percent increase in gross written premium on a constant-currency basis in the first half, driven by targeted growth in international markets and North America.

The rise in overseas businesses helped absorb approximately USD75 million in Middle East conflict claims, which remained below expectations. Net catastrophe costs dropped to USD445 million from USD479 million a year earlier, below the first-half allowance of USD517 million. QBE's adjusted net profit after tax for the six months ending June 30 grew to USD1,033 million, slightly surpassing the VA estimate of USD1.02 billion.

The insurer also announced an interim dividend of 33 Australian cents per share, up from 31 Australian cents per share declared a year earlier.