The QBE Insurance Group Ltd (ASX: QBE) share price is in focus after the insurer posted a 4% increase in adjusted net profit after tax to US$1,033 million for the half year ended 30 June 2026, alongside a 6% rise in its interim dividend.
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What did QBE Insurance Group report?
- Gross written premium rose 10% to US$15.1 billion (up 6% in constant currency terms)
- Adjusted net profit after tax was US$1,033 million, a 4% lift on 1H25
- Adjusted earnings per share increased by 4% in USD to 97 US cents
- Combined operating ratio held steady at 92.8%
- Interim dividend of A$0.33 per share, up 6%, with ~30% franked
- APRA PCA capital ratio remained strong at 1.82x
What else do investors need to know?
QBE maintained solid returns, with a return on equity of 17.7%, comfortably above its medium-term goal of 15% or more. The company completed a A$450 million buyback in April and announced plans to sell its Trade Credit business and transfer a loss portfolio to boost capital efficiency.
Underwriting results were in line with expectations, with favourable reserve developments and catastrophe claims remaining below the group's allowance. However, some timing-related ex-catastrophe claims, particularly in Accident & Health, are expected to reverse over the remainder of 2026.
Capital discipline remains a priority, as evidenced by robust regulatory capital multiples and further actions, such as redeeming A$500 million in Tier 2 notes in August to streamline the balance sheet.
What's next for QBE Insurance Group?
Looking forward, QBE targets mid-single digit premium growth and expects to maintain a combined operating ratio around 92.5% for the full year. The insurer also signalled further initiatives to enhance capital efficiency and deploy surplus capital into higher-return areas or back to shareholders through buybacks or dividends.
An improving outlook for interest rates is expected to support investment returns, while management remains focused on expense management and further business simplification. The impact from large claims in the Middle East and Accident & Health will be monitored, but a more balanced second half is anticipated.
QBE Insurance Group share price snapshot
Over the past 12 months, QBE shares have risen 10%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 4% over the same period.
