In the nine months leading up to September 30, 2025, QBE reported a global average premium rate increase of approximately 1.5%. This figure marks a deceleration from the growth observed in the first half of the fiscal year, largely due to slower increases in business property insurance prices. Despite this, the company's gross written premiums rose by 6% to $18.6 billion, maintaining consistency with first-half growth rates. However, the data indicates reduced momentum in the third quarter.
In response to these developments, QBE announced a substantial on-market share buyback totaling A$450 million, set to commence in the following month. This move aims to bolster shareholder value and demonstrate confidence in the company's financial stability. Nevertheless, the market reacted negatively, with QBE's shares falling by as much as 5.9% to A$18.62, positioning it among the worst performers on the ASX 200 index, which saw a 0.4% rise during the same period.
Industry experts have noted that insurers like QBE have become accustomed to robust premium increases in recent years. The current slowdown suggests a shift in market dynamics, prompting investors to reassess their positions. Despite these challenges, QBE has maintained its forecast, expecting a combined operating ratio of around 92.5% for fiscal 2026, indicating sustained underwriting profitability.
These developments underscore the evolving landscape of the Australian insurance market. Business owners and self-employed professionals should remain vigilant, as fluctuations in premium rates can directly impact insurance costs and coverage options. Staying informed about such market trends is crucial for making strategic decisions regarding business insurance needs.
