QBE underwriting gains strengthen balance sheet defence

Prior-year reserve development remained favourable.

Australia-listed QBE Insurance Group Limited’s outlook remains stable, with expectations that capital reserves will remain at least very strong, backed by a conservative investment portfolio, an appropriate reinsurance programme, and declining financial leverage in recent years.

AM Best assessed QBE’s overall balance sheet strength as very strong, supported by risk-adjusted capitalisation at the strongest level as of year-end 2025 under Best’s Capital Adequacy Ratio. The rating agency

At year-end 2025, QBE held an adjusted financial leverage ratio of 13.2% with strong interest coverage and a consistent track record of favourable prior-year reserve developments.

The agency also highlighted QBE's strong operating performance and established market position in global commercial lines insurance. 

Supported by portfolio management and geographic diversification, the group recorded a net combined ratio of 88.2% for 2025—a two-percentage point improvement compared with 2024 on an IFRS 17 accounting basis.

AM Best further noted that QBE maintains appropriate enterprise risk management across its operations.