Australia’s QBE beats profit estimates, maintains annual outlook

BENGALURU: Australia’s QBE Insurance beat first-half profit estimates and maintained its annual outlook on Friday, as premium growth and lower catastrophe costs helped offset claims linked to the Middle East conflict.

Underwriting resilience and global diversification boosted QBE’s performance and helped it stand out in a mixed Australian insurance earnings season.

On Thursday, rival IAG reported lower-than-expected full-year cash earnings, while Suncorp posted full-year cash earnings slightly ahead of market expectations. QBE, which operates in 27 countries, including the United States, maintained its outlook for 2026 constant-currency gross written premium growth at a mid-single-digit percentage range and a combined operating ratio of about 92.5percent. A ratio below 100percent means the insurer earned more in premiums than it paid out in claims, commissions, and other expenses. It also reported a 6percent rise in its gross written premium on a constant-currency basis for the first half, underpinned by targeted growth in international markets and North America.

The growth in its overseas businesses helped it absorb about USD75 million of claims linked to the Middle East conflict, which it said remained below its expectations. Its net cost of catastrophe claims fell to USD445 million from USD479 million a year earlier, below the first-half catastrophe allowance of USD517 million.

QBE’s adjusted net profit after income tax rose to USD1,033 million for the six months ended June 30, from USD997 million a year earlier, slightly beating a VA estimate of USD1.02 billion.

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