Published by Global Banking & Finance Review®
Posted on November 27, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleQBE Insurance shares fell to a 7-month low after signaling slower premium growth. Despite a share buy-back plan, the market reacted to the reduced growth rate.
By Nikita Maria Jino and Roshan Thomas
(Reuters) -QBE Insurance Group's shares sank to a seven-month low on Thursday, after Australia's largest insurer by market value signalled a softer premium rate growth in the third quarter.
The group premium rate – the average change in insurance premium rates across its global portfolio – rose about 1.5% in the nine months to September 30, modestly below the first-half pace because business property insurance prices grew slowly.
Shares of QBE Insurance tumbled as much as 5.9% to A$18.62, their weakest point since April 7, even after the group unveiled an on-market share buy-back totalling A$450 million ($293.76 million), which is expected to commence next month.
The stock was trading around 3% lower, as of 0212 GMT, and was among the top 10 worst performers in the ASX 200 benchmark index, which rose 0.4%. [.AX]
Gross written premiums rose 6% to $18.6 billion in the first nine months of the fiscal year, matching the first-half growth rate and suggesting momentum slowed in the third quarter.
Greg Smith, an investment specialist at Generate KiwiSaver Scheme, said QBE and other insurers had grown accustomed to strong premium increases, something many Australasians would recognise from rising annual premiums, adding that growth now appeared to be slowing.
"For QBE, the market has reacted to the rate of premium increases slowing significantly in the first nine months of the year," he said.
QBE Insurance said it expected a combined operating ratio (COR), a key metric that measures underwriting profitability, of around 92.5% for fiscal 2026, in line with its forecast for fiscal 2025.
A ratio below 100% implies an insurer has earned more in premiums than it has paid out in claims.
Meanwhile, rival Suncorp fell more than 3% after warning of net cost of about A$350 million from recent supercell thunderstorms in Queensland and northern New South Wales that have so far resulted in more than 10,000 claims.
($1 = 1.5319 Australian dollars)
(Reporting by Nikita Maria Jino and Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu)
Premium rate growth refers to the increase in the average insurance premium rates charged by an insurer over a specific period. It indicates the insurer's pricing strategy and market conditions affecting insurance costs.
The combined operating ratio (COR) is a key metric used in the insurance industry to measure underwriting profitability. A ratio below 100% indicates that an insurer is earning more in premiums than it is paying out in claims.
Gross written premiums are the total premiums an insurance company collects from policyholders before any deductions for reinsurance or cancellations. It reflects the insurer's total business volume over a specific period.
A share buy-back occurs when a company repurchases its own shares from the market, reducing the number of outstanding shares. This can increase the value of remaining shares and is often used to return capital to shareholders.
An insurance portfolio is a collection of insurance policies held by an insurer or an individual. It represents the risk exposure and financial performance of the insurer across different types of insurance products.
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