S&P upgrades QBE’s credit rating

S&P Global Ratings has upgraded its long-term issuer credit rating on QBE Insurance to ‘A’ from ‘A-’, and its core operating entities to ‘AA-’ from ‘A+’. The outlook on all ratings is stable.

The upgrade reflects QBE’s improved earnings resilience, stronger underwriting and pricing discipline, and a notable improvement in capital adequacy. In 2024, the insurer reported a net profit of $1.78 billion, up from $1.36 billion in 2023, aided by renewal rate increases, favorable catastrophe experience, and better prior-year reserve development. The combined ratio improved to 93.1% from 95.2%.

QBE’s North America division also showed progress, with its combined ratio dropping to 98.9%, despite remaining a weak spot. The group continues to de-risk the portfolio and exit noncore lines.

Gross written premium rose 3% to $22.4 billion in 2024. S&P expects 5% top-line growth in 2025, supported by continued—albeit moderating—rate increases.

QBE’s capital adequacy now exceeds the extreme stress level in S&P’s risk-based capital model. Still, the agency flagged North American underperformance and potential earnings volatility as limiting factors.

An upgrade is unlikely in the near term, while a downgrade could occur if underwriting results slip or capital adequacy materially weakens.