QBE rallies after reporting $3b profit in FY
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More news: Shares in QBE Insurance rallied in morning trade after the company reported a better-than-expected full-year profit of $3.05 billion, driven by strong returns across its fixed incomes and risk assets portfolios.
Shares rose 7.43% to $21.55 at 1:04pm AEDT.
Jarden analysts maintained a neutral rating on the stock, setting a price target of $21.30, citing concerns over the company’s ability to meet FY26 gross written guidance due to a more challenging environment as interest rates decline.
QBE posts $3b FY profit on strong investment returns
The news: QBE Insurance reported full-year statutory profit of USD2.15 billion ($3.05 billion), up from USD1.77 billion year on year, driven by strong returns across fixed incomes and risk assets portfolios.
The numbers: Analysts were expecting a full-year profit of USD2.08 billion, according to Visible Alpha data.
Full-year net insurance revenue came in at USD18.4 billion, up from USD17.8 billion a year prior.
Gross written premium saw a 7% increase to USD23.9 billion, while funds under management rose 17% to USD35.8 billion.
Core fixed income portfolio delivered a return of USD1.18 billion, while risk asset performance generated a return of USD461 million.
The company declared a final dividend of 78 cents, topping consensus estimates of 69 cents per share.
The context: QBE CEO Andrew Horton said the results were driven by the company’s strong portfolio optimisation efforts in delivering improved returns, alongside the exit of QBE’s non-core North American portfolio.
He said QBE would continue to invest in digital and cloud capabilities to support the ongoing developments and the use of AI tools across the business.
The company forecast a FY26 combined operating ratio of around 92.5%, with constant gross written premiums growth expected in the mid-single digits.
The source: ASX
