QBE Insurance Group (QBE) has posted adjusted net profit after tax of US$1,033 million for the half year ended June 30 2026, up from US$997 million a year earlier. The Sydney-headquartered insurer's return on equity (ROE) came in at 17.7% - comfortably above its medium-term outlook of 15%+, according to the company's half-year results announcement to the ASX.
"QBE has entered its 140th year with good momentum, supported by a strong balance sheet, a clear strategy and disciplined execution," group CEO Andrew Horton (pictured) said in the company's half-year investor report, marking 140 years since the insurer's founding in 1886.
For Australian brokers, the result signals a market shifting in their favour at renewal. QBE's Australia Pacific division reported gross written premium (GWP) broadly stable on the prior corresponding period, with average premium rate increases holding in the low-single digits and volumes softening in a number of commercial portfolios "where competition remains most elevated" – language brokers can use as leverage when negotiating terms on behalf of clients in contested lines. The division's combined operating ratio (COR) rose to 88.2% from 86.8%, still the strongest of QBE's three divisions, despite elevated catastrophe activity including the January bushfire and storm and flooding events across the east coast.
Group-wide, QBE's average renewal premium rate increase fell to just 0.3% for the half, down sharply from 2.1% a year earlier, with rates moderating further in property and select Lloyd's portfolios. For brokers, that softening trend is a signal to revisit pricing assumptions with clients heading into renewal season, particularly in property and commercial lines where QBE has explicitly flagged reduced pricing pressure. Group retention held at 83%, suggesting the insurer remains focused on holding its book rather than chasing rate.
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Lenders mortgage insurance (LMI) GWP fell 30%, reflecting lower mortgage origination volumes – a relevant data point for brokers working alongside mortgage and lending channels. Meanwhile, the division's underwriting result benefited from favourable prior accident year claims development across commercial lines, LMI and compulsory third party (CTP) motor, which brokers can point to as evidence of QBE's reserving discipline when discussing insurer stability with clients.
The half also brought board changes: Yasmin Allen AM became QBE's group chair, succeeding Michael Wilkins AO, while Christopher Harris joined the board on July 6 2026. Separately, Sue Houghton, CEO of Australia Pacific, announced her retirement, with QBE saying it was "well progressed" in seeking her replacement - a transition worth watching for brokers with established relationships in the local underwriting team.
QBE's capital position remains a factor brokers can weigh when assessing an insurer's capacity to write new and renewal business: its Prescribed Capital Amount (PCA) multiple stood at 1.82 times, above the top of its 1.6–1.8 times target range, and the group flagged a reinsurance transaction to de-risk around US$1.6 billion of long-tail reserves tied to exited business lines. For brokers, a well-capitalised insurer with reserve strengthening underway typically translates into more predictable capacity and appetite through the remainder of the cycle.
