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Highlights

  • QBE reports 7% gross written premium (GWP) growth in Q1 2025, or 8% in constant currency terms.

  • Investment returns remain positive, with funds under management increasing to $31.6 billion.

  • The company reaffirms its full-year outlook, including a 92.5% group combined operating ratio.

QBE Insurance Group Ltd (ASX:QBE) saw its share price rise significantly in Friday’s morning trade, gaining 2.4% to reach $22.36. This outpaced the broader S&P/ASX 200 Index (ASX: XJO), which was up just 0.1% at the same time. The rally follows the release of the company’s first quarter (Q1 2025) trading update.

The standout metric from the QBE report was its gross written premium (GWP) growth of 7% year-on-year, or 8% on a constant currency basis. This performance is particularly notable given a $100 million impact from the planned run-off of non-core insurance lines in North America. 

QBE also provided a detailed look at its underwriting performance, with catastrophe claims costing approximately $420 million for the four months ending April. These claims fall within the insurer’s first-half catastrophe allowance of $549 million. The major events contributing to these costs included wildfires in Los Angeles, widespread flooding in Queensland, and cyclone Alfred.

Importantly, QBE reassured the market about potential exposure to geopolitical and macroeconomic risks, such as tariffs and global trade disruptions. The company stated it expects any underwriting risks associated with initial trade disruptions to remain limited.

On the investment side, QBE continued to benefit from favourable interest rates and solid returns across risk assets. The insurer posted positive investment returns for the quarter, with funds under management rising to $31.6 billion, up from $30.6 billion at the end of FY 2024. However, the exit core fixed income yield edged slightly lower to 4.1%, compared to 4.3% at the end of last year.

Looking ahead, QBE reaffirmed its full-year guidance, anticipating mid-single-digit GWP growth on a constant currency basis. This outlook factors in a $250 million drag from the North American non-core portfolio runoff. The group’s combined operating ratio—a key measure of underwriting profitability—is expected to be around 92.5% for FY 2025, which remains consistent with prior guidance.

QBE also reminded investors of its upcoming half-year financial results, scheduled for release on 8 August 2025.

The QBE share price has now gained approximately 27% over the past 12 months.