QBE Insurance Group has maintained its full-year 2025 guidance following an 8% increase in gross written premiums (GWP) on a constant currency basis for the quarter ending April 2025. The growth was driven by ongoing momentum across QBE’s International and North America portfolios, with a 3.4% contribution from rate increases and 7% growth in underlying volume. However, a US$100 million drag from the run-off of non-core operations in North America tempered overall gains.
Financial Highlights
The insurer reported net catastrophe claims totaling approximately US$420 million over the first four months of the year, against a US$549 million catastrophe allowance for the first half of 2025. Natural disaster events contributing to the claims included wildfires in Southern California, floods in Queensland, Cyclone Alfred, and convective storms across North America. Despite these losses, QBE’s investment income reached approximately US$410 million during the quarter, driven by favorable interest rates and performance in risk assets.
Premium Growth and Outlook
For its crop segment, QBE anticipates moderate GWP growth through the rest of the year. However, the firm expects net insurance revenue to remain consistent with 2024 due to increased cessions to the US federal crop reinsurance pool. QBE reiterated its full-year expectations, including mid-single-digit constant currency GWP growth, factoring in a US$250 million drag from continued portfolio exits in North America. The group continues to target a combined operating ratio of around 92.5% for the year.
Leadership Commentary
QBE Chair Michael Wilkins emphasized the need for a ‘whole-of-community approach to mitigation,’ criticizing the current balance between disaster funding and mitigation efforts. CEO Andrew Horton highlighted the company’s progress on operational and strategic objectives, including good growth, solid underwriting margins, and a strong balance sheet. The company will announce its half-year results on August 8.
Strategic Developments
The company is continuing to invest in modernization, data-driven underwriting, and a customer-led strategy. QBE has also made governance changes, including the approval of a revised corporate constitution and the appointment of Neil Maidment to its board. The company is aligning its strategic agenda with long-term growth, including the adoption of AI in underwriting and sustainability reporting aligned with Australian regulatory standards.
