QBE Insurance Group (QBE) has reported adjusted net profit after tax of US$1,033 million for the half year ended June 30 2026, up from US$997 million in the prior corresponding period, with return on equity (ROE) at 17.7% - above the group's medium-term target of 15%+, according to the company's half-year results announcement.
"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 New Zealand brokers, the most relevant signal in this result is the pace of change in renewal pricing. QBE's International division, which houses much of its New Zealand-relevant underwriting alongside QBE Re and Lloyd's portfolios, reported an improved combined operating ratio of 91.6%, down from 92.5% a year earlier, while group-wide average renewal premium rate increases fell to just 0.3% for the half, from 2.1% previously. That softening - most pronounced in property and select Lloyd's lines – gives brokers a stronger negotiating position at renewal than they've had in recent cycles.
The group's net claims ratio improved to 62.3% from 62.8%, supported by favourable catastrophe experience and further favourable prior year claims development. For brokers placing property and casualty risk into markets with global reinsurance exposure, that improving claims trend - alongside catastrophe costs running comfortably below allowance - points to sustained capacity rather than a hardening response, which is useful context when setting client expectations ahead of renewal discussions. New Zealand's ongoing earthquake and severe weather exposure means brokers should still watch how global reinsurers price local risk even as broader softening continues.
QBE's capital position remained well above regulatory targets, with its Prescribed Capital Amount (PCA) multiple at 1.82 times. The group also disclosed a reinsurance transaction to de-risk around US$1.6 billion of long-tail reserves tied to exited business lines – a move that typically supports an insurer's ability to maintain or grow capacity in ongoing lines, which is a relevant data point for brokers assessing which carriers have room to write new business through the remainder of 2026. Governance changes during the half, including Yasmin Allen AM becoming group chair, add further context for brokers tracking leadership continuity at a carrier they place business with.
