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QBE raises half-year adjusted profit as renewal rate increases slow
QBE said its average renewal premium rate increase slipped to 0.3% in the half, down from 2.1% a year earlier, while group retention held at 83%.
QBE Insurance Group reported 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, and it put return on equity at 17.7%, comfortably above its medium-term 15%+ outlook, according to the insurer's half-year results announcement to the ASX.
The company said renewal premium growth cooled meaningfully, with its average renewal premium rate increase falling to 0.3% for the half from 2.1% a year earlier, as rates moderated further in property and select Lloyd's portfolios. QBE also reported group retention of 83%, indicating it is prioritizing holding its book rather than chasing rate.
In Australia Pacific, QBE said gross written premium was broadly stable, but with average premium rate increases in the low-single digits and volumes softening in some commercial portfolios where competition remains most elevated. The division's combined operating ratio rose to 88.2% from 86.8%, with elevated catastrophe activity including the January bushfire and storm and flooding events across eastern Australia.
QBE also highlighted mortgage and claims dynamics, saying its lenders mortgage insurance gross written premium fell 30% on lower mortgage origination volumes. The company attributed underwriting results to favourable prior accident year claims development across commercial lines, LMI, and compulsory third party motor, and it noted board changes including Yasmin Allen AM taking over as group chair.