Design Highlights
- QBE’s gross written premium increased by 6% to $18.6 billion in Q1-Q3 2025, highlighting strong market performance.
- The company achieved an improved combined operating ratio of approximately 92.5%, reflecting effective underwriting practices.
- Catastrophe claims remain below the projected allowance of $200 million, contributing to enhanced financial health.
- Favorable catastrophe claims experience has led to three consecutive years of low claim costs for QBE.
- QBE reported a solid investment return of $459 million in Q3 2025, further supporting its financial stability.
As QBE Insurance rolls into the final months of 2025, it’s clear they’re cashing in big time on rising premiums. With a gross written premium (GWP) bump of 6% to a whopping $18.6 billion in just the first three quarters, they’re riding high.
Sure, they took a hit from the runoff of some North American non-core lines—around $250 million. But let’s be real: even with that drag, their growth story is more impressive than a magician pulling a rabbit from a hat. Subtract that pesky runoff, and their ex-rate growth skyrockets to 7%, or 6% if you toss out Crop insurance. Talk about a strategic maneuver! QBE is clearly focused on their profitable segments like Accident and Health, and Financial Lines, keeping the cash flowing. They’re not just sitting back, hoping for luck; they’re making smart moves.
However, let’s not ignore the fact that the full-year 2025 premium growth forecast is still just mid-single digits. It’s good, but not mind-blowing. The average premium rate increase? Well, that’s moderated to a cozy 1.5% for the first nine months. Not exactly a wild party, but it’s still better than a flat-out decline. Commercial property insurance prices are softening, which is like finding out your favorite dessert got smaller but still tastes great. Excluding commercial property and Lloyd’s segments, premium rates shot up about 4%. So, there’s some good news buried in there.
QBE’s underwriting performance is looking sharp too, with a combined operating ratio (COR) improving to around 92.5%. That’s a sign of a profitable underwriting environment, folks. They’re playing their cards right, with a favorable catastrophe claims experience boosting their numbers. Despite ongoing regulatory challenges, they continue to focus on navigating headwinds and sustaining growth in key markets. Many businesses are also exploring additional liability coverage options beyond their primary policies to protect against catastrophic losses that could exceed standard limits.
And let’s not forget the fact that the catastrophe allowance for the end of the year is pegged at around $200 million, while actual costs are projected to stay below that. For the third year in a row. Cue the applause! With a solid investment return of $459 million in Q3 2025, thanks in part to stable fixed income yields, QBE seems to have their ducks in a row. They’re not just surviving; they’re thriving.
