QBE Insurance Group has maintained its full-year 2025 guidance after reporting continued premium expansion in the first quarter (Q1 FY25), despite elevated catastrophe-related losses and growing volatility in global markets.
The insurer posted an 8% increase in gross written premiums (GWP) on a constant currency basis for the quarter ending April 2025. This includes a 3.4% contribution from rate increases and 7% growth in underlying volume. Premium growth was largely attributed to ongoing momentum across QBE’s International and North America portfolios.
A US$100 million drag from the run-off of non-core operations in North America tempered overall gains. Excluding both the non-core portfolio impact and crop insurance, underlying growth was steady at 8%.
For its crop segment, QBE anticipates moderate GWP growth through the rest of the year. However, the firm expects net insurance revenue to remain more consistent with 2024 due to increased cessions to the US federal crop reinsurance pool.
The insurer reported net catastrophe claims totalling approximately US$420 million over the first four months of the year. These losses are set 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.
QBE’s exposure to the California wildfires was reported as unchanged from prior estimates. The company noted that while geopolitical and trade-related risks remain under review, their immediate underwriting impact appears limited. Management said that mitigating inflationary pressures remains a focus for the near term.
QBE’s investment income reached approximately US$410 million during the quarter. The company cited favourable interest rates and performance in risk assets as key drivers. Its exit yield on core fixed income dropped slightly to 4.1% from 4.3% at the end of 2024.
Total funds under management rose to US$31.6 billion, with risk assets now accounting for 15% of the portfolio.
Gains in fixed income securities – driven by falling risk-free rates – were offset by adjustments to claims liabilities, resulting in a net neutral effect from asset-liability management activity.
QBE reiterated its full-year expectations, including mid-single-digit constant currency GWP growth. This projection factors 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.
The company will announce its half-year results on Aug. 8.
At QBE’s recent annual general meeting (AGM), chair Michael Wilkins described the insurer’s performance in 2024 as steady while reiterating the broader societal and economic role of the insurance sector.
“We continue to advocate for a whole-of-community approach to mitigation, where governments, insurers, and communities work together. Right now, in Australia, we spend 97% of disaster funding on recovery and only 3% on mitigation. That balance must shift. It’s simply not sustainable, economically or socially, to continue down this path,” he said.
He also criticised the tax burden on insurance customers, noting that levies and duties add between 20% and 40% to premiums. He pointed out that in the 2023-24 fiscal year, state governments collected nearly A$8.6 billion in insurance taxes – far exceeding total industry profits.
“Reducing taxes on insurance is one of the few immediate levers that can provide relief, while we pursue longer-term reform through mitigation and planning policy,” Wilkins said. “We also need to address the issue of underinsurance, particularly for small businesses, where tax and affordability pressures are impacting uptake and increasing exposure to risk.”
QBE CEO Andrew Horton said the group continues to make progress on its operational and strategic objectives.
“We have delivered good growth, solid underwriting margins, and a strong balance sheet – a combination that continues to support excellent returns and more predictable outcomes. These are important indicators that our business is working – for customers, for shareholders, and for our people,” he said.
He emphasised continued investment in modernisation, data-driven underwriting, and a customer-led strategy.
The latest AGM also saw shareholder approval of QBE’s revised corporate constitution. Longtime board member Rolf Tolle is stepping down, while Neil Maidment – a veteran of the reinsurance sector – has joined the board. The company stated these changes are part of its broader governance renewal efforts.
Looking ahead, QBE said it would continue to align its strategic agenda with long-term growth, including the adoption of AI in underwriting, portfolio optimisation, and sustainability reporting aligned with Australian regulatory standards.
