QBE Insurance posts 2025 profit and dividend increase in FY25

The QBE Insurance Group Ltd (ASX: QBE) share price is in focus today after the insurer reported a 21% lift in statutory net profit after tax to US$2,157 million and full year dividends up 25% to 109 cents per share.

What did QBE Insurance Group report?

• Gross written premium rose 7% to US$23,959 million (8% excluding exited portfolios)
• Statutory net profit after tax up 21% to US$2,157 million (FY24: US$1,779 million)
• Combined operating ratio improved to 91.9% versus 93.1% a year ago
• Investment income steady at US$1,633 million, a return of 4.9%
• Full year dividend increased 25% to 109 Australian cents per share (payout ratio: 50%)
• Adjusted return on equity up to 19.8% (FY24: 18.2%)

What else do investors need to know?

QBE saw its funds under management jump 17% to US$35.8 billion, driven by premium growth and robust investment returns. Debt to total capital increased to 24.1% as the group completed tier 2 capital raisings to replace previously issued notes.

The combined operating ratio improvement reflects successful portfolio optimisation and lower catastrophe claims, with the net cost from catastrophes at just 4.1% of net insurance revenue, well below the group’s allowance. The APRA Prescribed Capital Amount (PCA) multiple edged higher to 1.87x, above the group target range.

What did QBE Insurance Group management say?

Group CEO Andrew Horton said:

QBE delivered strong performance in 2025, exceeding our financial plan for the year. Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns.

What’s next for QBE Insurance Group?

Looking ahead, QBE expects continued gross written premium growth in the mid-single digits (on a constant currency basis) for FY26, with an anticipated combined operating ratio of around 92.5%.

The company remains focused on underwriting discipline and portfolio optimisation, having largely exited its North American non-core portfolio. Strategic priorities include further investment in digital, cloud, and AI capabilities to drive efficiency and robust underwriting.

QBE Insurance Group share price snapshot

Over the past 12 months, QBE Insurance Group shares have remained flat, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

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The post QBE Insurance posts 2025 profit and dividend increase in FY25 appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.