Design Highlights
- QBE’s net catastrophe claim costs for the first ten months of 2025 stand at A$700 million, significantly under budget.
- Costs are A$250 million below the estimated A$950 million, marking a successful financial performance.
- This achievement marks the third consecutive year of favorable catastrophe cost outcomes for QBE.
- Strong risk management strategies and advanced modeling contribute to effective cost control and assessment.
- QBE’s operational resilience reflects effective strategic planning amid challenging market environments.
QBE Insurance is throwing catastrophe fears out the window—at least for now. The company reported net catastrophe claim costs for the first ten months of 2025 at a mere A$700 million, which is about A$250 million under budget. Yes, you read that right. They had estimated costs closer to A$950 million, but it seems like luck—or perhaps skill—was on their side.
With November and December’s costs projected at around A$200 million, it’s clear that QBE is headed for a full year with catastrophe costs comfortably below budget, marking the third consecutive year of such favorable outcomes.
What’s driving this miracle? Well, California wildfires contributed around A$200 million in exposure. Then there were the storms and floods hitting Australia and North America. Nature’s wrath doesn’t seem to take a vacation, but somehow, QBE is still managing to dodge the worst of it. It’s almost like they’ve got a protective bubble or a savvy risk management team that knows what they’re doing.
On the flip side, gross written premium (GWP) also saw a boost, growing about 6% over the first nine months of 2025, hitting A$18.6 billion. That’s despite facing a drag of A$250 million from non-core business lines in North America. So, even with the dead weight, they’re still paddling upstream. Gross written premium growth of 6% shows that even in challenging times, QBE is navigating with skill. Additionally, their combined operating ratio improved to 92.8%, indicating enhanced operational efficiency.
Excluding those non-core lines, the premium growth was even better at around 7%. Just goes to show, a little disciplined pricing and some clever reshaping of the portfolio can work wonders.
Now, let’s talk claims management. The net claims ratio dropped from 64.2% to 62.8%, thanks to favorable prior accident year reserve developments. That’s a fancy way of saying they got lucky with past claims. Like many insurance carriers, QBE’s liability coverage includes legal defense costs that are paid in addition to policy limits, ensuring comprehensive protection for policyholders facing lawsuits.
Their expense ratio? Steady as a rock at about 11.3–11.5%. The combined operating ratio improved too, showing that they’re not just treading water; they’re swimming.
QBE has also been smart with its risk management. Advanced catastrophe modeling and innovative partnerships, like one with the International Finance Corporation, are helping them stay afloat. Geographic diversification keeps them nimble against natural disasters.
And even with rising reinsurance costs—over A$2 billion—they’re sticking to their guns, maintaining a similar reinsurance program.
In a market that’s tricky, QBE is making it look easy. Who knew that catastrophe fears could be thrown out the window with such flair?
