QBE expects Australian commercial market conditions to remain competitive this year, making growth challenging and increasing the need for responsiveness and innovation.

Group CEO Andrew Horton says the insurer is focusing on relationships with brokers and building a customer-centric approach, while exploring opportunities to draw on broader group expertise.

“We’re looking at our cyber business, which is a global business to us, and how do we grow the cyber business here,” Mr Horton told insuranceNEWS.com.au. “We’re also looking at the portfolio solutions business we have in the UK and how we bring some of that expertise here.”

QBE expects the first intermediated products provided through its modernised technology platform will be available in the second quarter, with a wider rollout to follow.

Mr Horton says the new system will benefit brokers and provide more flexibility for the company.

“Our systems have historically been quite clunky, so we haven’t been able to move very quickly internally when we’ve seen something changing in the external environment,” he said. “It’s going to be a double win: easy for the external world to do business with us and easy for ourselves to move quickly.” 

Australia Pacific gross written premium increased 1% to $US5.23 billion ($7.38 billion) on a constant currency basis last year, while excluding rate increases it was broadly flat.  

“This was despite reductions in consumer portfolios, as we recalibrate our strategy, and a generally competitive backdrop in commercial lines,” the company says.

Lenders’ mortgage insurance GWP increased 35% to $US110 million ($155 million) last year, reflecting a lift in housing market activity.

Australia Pacific’s combined operating ratio improved to 89.6% from 92% as favourable reserve developments helped counter catastrophe claims “modestly above allowance”.

“Here in Australia, it’s going to be a pretty competitive market in 2026, so our growth aspirations are not as large as they are elsewhere in the world,” Mr Horton said.

QBE’s group earnings jumped 21% to $US2.157 billion ($3.053 billion) last year and GWP was $US23.959 billion ($33.913 billion), representing gains of 7% on a reported basis and 8% excluding exited portfolios.

This year, the company expects GWP constant currency growth in the mid single digits and a combined operating ratio of 92.5%.

In the medium term, defined as the next three years, it expects an adjusted return on equity of at least 15%.

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