QBE shares race 7% higher on strong full-year result

QBE Insurance Group Ltd (ASX: QBE) shares jumped 7.3% higher to $21.52 during Friday lunch hour trade.

The share price surge comes after the insurance company reported a 21% profit increase for the full year 2025.

Solid jump in profit and premiums

QBE is Australia’s second-largest international insurer. It offers a broad suite of products across personal, commercial, corporate and institutional markets, spanning underwriting and reinsurance.

The ASX financial company delivered a strong FY 2025 performance. It managed to lift statutory net profit after tax about 21% to US$2.16 billion from US$1.78 billion a year earlier, comfortably ahead of market expectations.

Gross written premiums climbed roughly 7% to nearly US$24 billion, reflecting solid rate momentum and broader portfolio growth. The combined operating ratio improved to 91.9%, indicating healthier underwriting margins and a better balance between premiums and claims costs.

Lower catastrophe claims

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

QBE Group CEO, Andrew Horton said:

Driven by our purpose to enable a more resilient future, 2025 has been a year of meaningful progress for QBE. Underpinned by disciplined execution of our strategic priorities, our efforts to rebalance the portfolio and stabilise performance have delivered tangible improvements, and the business has built strong momentum.

Investment income remained resilient, supporting overall profitability alongside underwriting gains. QBE lifted its full-year dividend by about 25% to $1.09 per share, with a roughly 50% payout ratio, underscoring strong capital generation.

What next for QBE Insurance?

Looking ahead, management reaffirmed guidance for mid-single-digit premium growth and a combined operating ratio of around 92.5% for FY 2026. It’s signalling confidence in continued disciplined execution.

The insurer is doubling down on underwriting discipline and portfolio optimisation, having largely exited its North American non-core book.

Mr Horton commented:

Our Portfolio Optimisation efforts have delivered meaningful change over the last few years. The exit of our North America non-core portfolio progressed well and broadly concluded this year, leaving us with a more focused business with substantially less property catastrophe exposure.

 It also plans to step up investment in digital, cloud and AI to lift efficiency and sharpen underwriting performance.

QBE shares snapshot

In the past year QBE shares have had many ups and downs, with the share price moving roughly between $18 and $24. Since the start of the year the ASX financial stock has found its way up again, gaining 9%.

Over the past 12 months QBE shares increased value with almost 6%. However, they’re still trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

The post QBE shares race 7% higher on strong full-year result appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.