QBE Insurance: QBE Insurance Group Ltd. is expected to deliver another year of strong financial performance in 2026, with full-year net income forecast to reach approximately $2 billion, according to S&P Global Ratings. The positive outlook reflects the insurer’s disciplined strategy execution, successful de-risking initiatives, and sustained capital strength.
In a report released on February 20, 2026, S&P Global Ratings highlighted that QBE’s operating performance and balance sheet are likely to remain resilient well beyond 2026, supported by management’s focus on profitability, underwriting discipline, and portfolio simplification.
Strong Strategy Execution Driving Results
According to S&P, QBE’s continued success is rooted in the effective execution of its long-term strategic plan. Over recent years, the insurer has taken deliberate steps to streamline operations, improve underwriting quality, and reduce exposure to volatile and non-core business lines.
“The group’s operating performance and balance sheet will continue to benefit from the successful execution of its strategy and ongoing de-risking initiatives,” S&P noted in its assessment. These actions have helped stabilize earnings and reduce the impact of unexpected claims volatility.
A key element of this strategy has been QBE’s decision to exit certain non-core insurance lines that did not align with its long-term risk appetite or return expectations.
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Exit From Non-Core Lines Strengthens Risk Profile
One of the most notable de-risking actions has been QBE’s exit from non-core business segments, including the sale of its global trade credit and surety operations. While such divestments can sometimes impact short-term earnings, S&P believes the financial effect on QBE’s 2026 results will be minimal.
Instead, the move is expected to improve the overall quality of earnings by reducing exposure to complex and capital-intensive risks. By focusing on core insurance segments where it has scale, expertise, and pricing power, QBE is positioning itself for more consistent profitability.
Capital Position Remains Strong
Despite shareholder-friendly initiatives, QBE’s capital position is expected to remain robust. S&P projects that the insurer’s capital will stay above its “extreme-stress” capital level, even after accounting for a A$450 million share buyback and the payment of final dividends.
This strong capital buffer provides QBE with significant financial flexibility. It allows the group to absorb potential shocks from natural catastrophes, market volatility, or adverse claims developments while continuing to invest in growth opportunities and return capital to shareholders.
2025 Performance Sets the Foundation
QBE’s positive outlook for 2026 builds on an already strong performance in 2025. The company reported a net profit after tax of $2.157 billion for 2025, representing a 21% increase compared to the previous year.
S&P noted that the result exceeded its own forecasts and reflected broad-based improvements across QBE’s global operations. The insurer benefited from strong geographic diversification, with solid contributions from multiple regions rather than reliance on a single market.
Drivers Behind Earnings Growth
Several factors contributed to QBE’s strong 2025 results and are expected to continue supporting earnings momentum in 2026:
- Disciplined underwriting: Careful risk selection and pricing discipline helped improve underwriting margins.
- Sound expense control: Ongoing cost management initiatives supported operating efficiency.
- Lower catastrophe claims: A comparatively benign catastrophe environment reduced claims volatility.
- Strong investment income: Higher interest rates and effective asset allocation boosted investment returns.
Additionally, gross written premiums grew by 7% in 2025, reflecting both organic growth and improved pricing conditions across several insurance lines.
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Geographic Diversification Adds Stability
S&P highlighted QBE’s geographic diversification as a key strength. Operating across multiple regions helps smooth earnings by reducing dependence on any single economy or catastrophe-prone market.
Improved performance across all major divisions indicates that QBE’s strategic and operational improvements are taking hold across the organization, rather than being driven by one-off factors.
Outlook for 2026 and Beyond
Looking ahead, S&P expects QBE to maintain strong operating performance, supported by continued underwriting discipline, prudent risk management, and a simplified business structure. The ratings agency believes the worst of past volatility is behind the insurer, with earnings now on a more sustainable and predictable trajectory.
While challenges such as climate-related risks, regulatory changes, and economic uncertainty remain part of the global insurance landscape, QBE’s strengthened balance sheet and conservative capital management provide a solid buffer.
