The QBE Insurance Group Ltd (ASX: QBE) share price is in focus after reporting its FY26 half-year result.
QBE is one of the largest insurance companies on the ASX with a market capitalisation of well over $30 billion. It has a presence in Australia, North America, the UK, Europe, New Zealand, Asia and more.
FY26 half-year result
Below are the highlights from the six months to 30 June 2026:
- Gross written premium (GWP) increased 9.5% to US$15.1 billion
- Net insurance revenue rose 8.3% to $9.55 billion
- Net investment income grew 5.1% to $828 million
- Adjusted net profit after tax (NPAT) grew 3.6% to $1.03 billion
- Net profit rose 1.1% to $1.03 billion
- Interim dividend per share hiked by 6.4% to $0.33
What happened in the result?
QBE noted that GWP grew 6% on a constant currency basis – this assumes foreign exchange rates hadn’t changed – which was consistent with its mid-single-digit outlook, supported by a “breadth of opportunities” across its diversified business.
The insurer noted that there was 5% growth in North America and 9% growth in its international division. The international growth rate was led by QBE Re, Portfolio solutions and Lloyd’s.
There was a moderation of premium rate increases, driven by commercial property. Group premium rates rose by 3% excluding commercial property and international markets.
QBE also reported that it delivered a combined operating ratio of 92.8%, the same as last year, and it’s on track to achieve its outlook of around 92.5%. It said it’s experiencing ongoing benefit from “sound” risk settings, with further favourable prior year development and catastrophe costs comfortably below its allowance.
The insurance business also said that premium rate adequacy also remains supportive across the vast majority of portfolios.
It also described its investment performance as “excellent”, equating to a return of 2.3% for the half-year period.
Capital
QBE reported that it has a strong capital position, with a prescribed capital amount (PCA) of 1.82x, which positively compares to its target range of between 1.6x to 1.8x. It noted its $450 million on-market share buyback was completed in April.
The insurance business also said that additional capital efficiency initiatives will be completed in the second half of FY26, including the sale of its Trade Credit business, as well as a loss portfolio transfer which was announced with the result.
Improving capital efficiency will be a “primary focus” for the year ahead.
Final thoughts on the QBE share price
Insurance is a complex industry, so it’s one that I tend to avoid investing in. QBE has done well over the last five years to regain some investor confidence.
The business is not trading at a demanding earnings multiple, and its earnings and dividend are growing. It could be an adequate long-term investment from here, but I don’t know enough about the long-term profit prospects for insurance in QBE’s core markets to judge that.
Instead, there are other ASX dividend shares I’d rather buy for my portfolio.
