S&P Global Ratings has affirmed a stable outlook for QBE Insurance Group. The credit rating agency expects the insurer to maintain strong underwriting discipline, which will help keep its financial position steady.
Revenue Growth Expected to Continue in 2025
S&P anticipates that QBE will report revenue growth of around 5% in 2025. This growth is expected to be driven by ongoing, though slower, premium growth. Despite the more cautious pace, the insurer’s revenue trajectory remains positive.
Strong Capital Ratios Above Stress Threshold
Capital ratios for QBE are forecasted to stay robust. According to S&P’s model, the insurer’s capital levels are expected to exceed the 99.99% stress threshold. This demonstrates QBE’s strong ability to withstand financial shocks.
Improved Earnings and Capital Strength in 2024
QBE has shown significant improvement in its earnings resilience and capital strength. The company has sharpened its focus on risk selection and portfolio risk reduction. These efforts have contributed to a stronger financial foundation.
In 2024, QBE reported a net profit of $1.78 billion. This is a rise from the $1.36 billion recorded in 2023. Additionally, the combined ratio improved to 93.1%, down from 95.2% the previous year. A lower combined ratio indicates better underwriting performance.
Progress in North America Market
The insurer also made gains in the North American market. There, QBE’s combined ratio improved to 98.9%. This progress was driven by shedding non-core business and reducing catastrophe risk, which helped enhance profitability.
Premium Growth Despite Strategic Exits
Even with some business exits, QBE’s total written premiums increased by 3%, reaching $22.4 billion. This shows the insurer’s ability to grow its premium base while managing risk exposure effectively.
In summary, QBE Insurance Group’s financial health remains strong. Its stable outlook reflects solid underwriting discipline, robust capital levels, and ongoing revenue growth.
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