QBE Insurance Group: Assuming credit coverage

Research evidence excerpt

QBE Insurance Group: Assuming credit coverage

J P M O R G A N Asia Pacific Credit Research

17 June 2026

Neutral

QBE Insurance Group QBEAU

Assuming credit coverage

Asia Pacific Credit Research

We assume credit coverage of Australia’s QBE Insurance and maintain a Neutral

recommendation. We also initiate on the recently issued subordinated USD bonds Matthew Hughart AC

with a Neutral recommendation. (852) 2800-6518

matthew.hughart@jpmorgan.com

• The 2037 / ’32c subordinated bonds are rated BBB+ at Fitch and S&P. They J.P. Morgan Securities (Asia Pacific) Limited

trade slightly inside Japan life insurance bonds, which are rated a notch higher. Emma Xing

We see better value in the Japan life insurance names at this juncture. Ratings (852) 2800-8727

emma.xing@jpmorgan.com

are similar to the senior bonds issued by Hong Kong’s FWD Group (bond J.P. Morgan Securities (Asia Pacific) Limited

ticker: FWDGHD) on which we have a Neutral recommendation. This also Europe Corporate Credit - Banking &

supports a balanced view on QBEAU’s bonds. Financial Services (IG)

• Full-year results included an improvement in the combined ratio to 91.9%, Gareth Davies, CFA

compared to 93.1% in fiscal 2024. Return on equity improved to 19.8% (44-20) 3493 0672

compared to 18.2% in 2024. The insurance service result was $1.7bn, up 15% gareth.davies@jpmorgan.com

y/y while net investment result was $1.6bn (+9.7% yy), which combined to J.P. Morgan Securities plc

give a group net income result of $2.2bn ($1.8bn, +21%). The prescribed

capital amount (PCA) multiple came in at 1.87x compared to a target range of

1.6-1.8x.

• Risks to our view include higher catastrophe and large-loss experience (given

QBE’s global P/C exposure), including elevated natural catastrophe claims