QBE Insurance slated for earnings improvement – S&P Global Ratings

The insurer outperformed catastrophe loss projections.

QBE Insurance Group is expected to see continued earnings improvement into 2025, supported by stable premium rate increases of 3% to 4%, easing claims inflation, and reduced exposure to catastrophes, according to S&P Global Ratings. 

QBE reported a net profit after tax of $1.78b for the fiscal year ending 31 December 2024, in line with expectations for stronger underwriting performance, solid investment returns, and modest revenue growth. 

The insurer outperformed catastrophe loss projections, benefiting from its exit from higher-risk property portfolios in recent years, despite significant global insurance market losses. 

Challenges remain in QBE’s North American operations, particularly in crop insurance, which underperformed in 2024. However, efforts to derisk and modernise the division have led to a modest underwriting profit. 

Fiscal 2025 results are expected to benefit from stable premium rates and improved risk selection, though rising social inflation may impact casualty insurance. 

The insurer’s $200m net exposure to California wildfires is projected to affect its international division.  

QBE’s balance sheet remains strong, with capital levels assessed as very strong by both S&P Global and regulatory standards. 

The insurer has enhanced its reinsurance protection by lowering retention levels and introducing a new catastrophe bond for US events, further supporting its resilience.