QBE, the global insurer based in Sydney, has reported one of its strongest financial performances in recent years. The company announced its full-year results on February 19, 2026, revealing a significant rise in profit, improved underwriting performance, and increased shareholder returns.
For the fiscal year, QBE posted a statutory net profit after tax of US$2,157 million, up from US$1,779 million in the previous year. On an adjusted basis, profit climbed to US$2,132 million, representing a return on equity of 19.8%. This strong performance is partly due to a better-than-expected combined operating ratio of 91.9%, which improved from 93.1% the year before and beat the company’s guidance of 92.5%. The insurer credited this to a mix of factors including good pricing, portfolio management, and notably lower catastrophe costs.
Catastrophe claims fell sharply to US$751 million, or 4.1% of premiums, down from US$1,048 million (5.9%) a year earlier, and below QBE’s annual allowance for catastrophes. This reduction helped lift underwriting results significantly. Outside of catastrophe claims, the company’s underlying claims remained stable, though some portfolios faced tougher loss trends and large individual claims. This highlights ongoing challenges with managing risk and pricing, especially as large losses continue to be a concern.
QBE also saw growth in its gross written premiums, which rose 7% to nearly US$24 billion, outperforming its growth targets. Excluding exited portfolios, growth was 8%. By region, North America grew 4%, the International segment surged 11%, while Australia Pacific remained flat. The strong international growth reflects varied local market conditions and appetite for different insurance lines.
On the investment side, QBE earned US$1,633 million in income, maintaining a solid 4.9% return. Core fixed income investments returned 4.2%, while riskier assets performed exceptionally well with nearly 10% returns. This steady investment income eases pressure on underwriting margins and provides more room for competitive pricing.
Capital strength remains robust, with QBE’s APRA PCA multiple slightly increasing to 1.87 times, just above its targeted range of 1.6 to 1.8 times. The company declared a final dividend of 78 Australian cents per share, pushing the full-year dividend up 25% to A$1.09 per share, and maintaining a payout ratio of 50%.
For brokers, these results suggest QBE is in a healthy position, combining strong profit with disciplined underwriting. Although this might not mean cheaper premiums across the board, it signals a more consistent and reliable insurer with clear appetite to grow where the risks make sense. QBE expects the market environment to stay positive and plans for continued mid-single-digit premium growth and a combined operating ratio around 92.5% in the year ahead.
As clients push back on pricing and demands, brokers will likely see QBE maintaining a careful balance between expanding business and managing the risk of big losses. This sets the stage for steady, though perhaps selective, competition in the insurance market through 2026.