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QBE Insurance Group Limited
(Sydney:QBE)
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Rating:73Outperform
Price Target:
AU$25.00
▲(13.38% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by improving financial performance (notably strong cash-flow strength and higher profitability) and supportive valuation (moderate P/E and solid dividend yield). These positives are tempered by weak near-term technical momentum (downtrend and negative MACD) and earnings-call risks tied to claims inflation, underwriting pressure in certain markets, and expense/reserve remediation actions.
Positive Factors
Premium growth and profitability
Continued premium growth alongside ROE above the medium-term target indicates improving underwriting scale and earnings quality. Sustained profitability gives QBE greater capacity to invest, return capital and absorb claims volatility.
Negative Factors
A&H claims inflation
Claims inflation in Accidents & Health is pressuring loss ratios and has required provisioning and reduced volumes. If pricing and claims actions take time to work, the segment could weigh on underwriting margins over coming periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Premium growth and profitability
Continued premium growth alongside ROE above the medium-term target indicates improving underwriting scale and earnings quality. Sustained profitability gives QBE greater capacity to invest, return capital and absorb claims volatility.
Read all positive factors
QBE Insurance Group Limited (QBE) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$32.57B
Dividend Yield1.5%
Average Volume (3M)3.66M
Price to Earnings (P/E)10.8
Beta (1Y)0.55
Revenue Growth3.37%
EPS Growth6.40%
CountryAU
Employees13,196
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.45
Shares Outstanding1,494,024,400
10 Day Avg. Volume4,045,955
30 Day Avg. Volume3,658,213
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)2.57
Price to Sales (P/S)1.20
P/FCF Ratio6.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$25.28Price Target Upside14.63% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.4
Revenue Forecast (FY)AU$20.03B
QBE Insurance Group Limited Business Overview & Revenue Model
Company Description
QBE Insurance Group Limited engages in underwriting general insurance and reinsurance risks in the Australia Pacific, North America, and internationally. The company offers commercial and domestic property, agriculture, public/product liability, m...
How the Company Makes Money
QBE primarily makes money through (1) underwriting income from insurance and reinsurance and (2) investment income generated from investing premiums (the “float”) before claims are paid.
1) Underwriting income (insurance and reinsurance operation...
QBE Insurance Group Limited Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 19, 2027
Earnings Call Sentiment Positive
The call conveyed a broadly positive performance: strong returns (ROE ~17.7%), solid premium growth (6%), disciplined capital actions (buyback, dividends, LPT and planned disposal), resilient investment income (~$830m) and notable progress on reinsurance and facilities businesses. Offsetting items included A&H claims inflation and related provisioning, pockets of underwriting pressure in parts of North America and property/Lloyd's rate softness, reserve remediation activity (LPT) and a slightly higher expense ratio. Overall the positive drivers (profitability, growth, capital strength, AI/efficiency initiatives and cat resilience) materially outweigh the challenges discussed.Positive Updates
Strong profitability and returns
Adjusted net profit just over $1.0 billion, up 4% year-on-year; group return on equity of 17.7% (almost 18%), comfortably above medium-term guidance of 15%+.
Negative Updates
Accidents & Health (A&H) underperformance and claims inflation
A&H experienced significant claims inflation (management noted claims closer to ~30% versus ~20% assumed), prompting an onerous contract provision that inflated H1 accident-year combined ratio and intentional pullback in A&H volumes while margins are restored.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong profitability and returns
Adjusted net profit just over $1.0 billion, up 4% year-on-year; group return on equity of 17.7% (almost 18%), comfortably above medium-term guidance of 15%+.
Read all positive updates
Company Guidance
QBE reiterated guidance to deliver mid‑single‑digit constant‑currency gross written premium growth (H1 GWP +6% to ~A$15bn; underlying ~7%) and a group combined ratio around 92.5% (H1 92.8%), while targeting medium‑term returns above 15% (H1 ROE 17.7%). Key H1 metrics included investment income of ~A$830m (annualized return ~4.6–5%), adjusted net profit just over A$1bn (+4%), an interim dividend of A$0.33 (+6%, H1 payout ~33%), an expense‑ratio target of ~12% for FY26, and a PCA multiple ~1.82x (1.78x ex‑dividend). Capital actions and efficiency moves highlighted were a completed A$450m buyback, QBE Re now ~A$4bn GWP (aspirational A$6bn by 2030), QPS GWP ~A$1.8bn, expected cyber premiums ~A$600m by year‑end, an LPT covering ~A$1–1.6bn of reserves (giving ~2ppt PCA benefit), an expected ~A$70m pretax gain on the trade‑credit sale in H2, a sidecar and cat bond initiatives, catastrophe costs ~A$450m in H1 (including ~A$75m Middle East impact), favourable prior‑year development ~A$110m, PML down ~11% since 2023, max event retention down ~40% to ~A$240m, and funds under management A$36.6bn (85% core fixed income, duration ~2.5 years).QBE Insurance Group Limited Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.30B | 24.96B | 18.75B | 17.45B | 13.40B | 13.53B |
| Gross Profit | 15.53B | 24.96B | 5.53B | 5.20B | 3.13B | 13.53B |
| EBITDA | 3.18B | 3.41B | 2.69B | 2.20B | 1.27B | 1.22B |
| Net Income | 2.17B | 2.23B | 1.78B | 1.35B | 587.00M | 750.00M |
Balance Sheet | ||||||
| Total Assets | 48.79B | 49.19B | 43.85B | 42.11B | 33.22B | 43.24B |
| Cash, Cash Equivalents and Short-Term Investments | 2.32B | 1.87B | 1.64B | 1.37B | 839.44M | 819.00M |
| Total Debt | 4.39B | 4.11B | 2.90B | 3.09B | 3.04B | 3.61B |
| Total Liabilities | 37.12B | 37.51B | 33.12B | 32.16B | 40.51B | 40.42B |
| Stockholders Equity | 11.66B | 11.68B | 10.73B | 9.93B | 8.86B | 8.85B |
Cash Flow | ||||||
| Free Cash Flow | 3.45B | 4.35B | 2.34B | 1.33B | 2.63B | 2.63B |
| Operating Cash Flow | 3.49B | 4.37B | 2.58B | 1.50B | 2.79B | 2.75B |
| Investing Cash Flow | -2.27B | -2.97B | -1.48B | -428.00M | -2.01B | -2.77B |
| Financing Cash Flow | -1.11B | -1.11B | -745.00M | -498.00M | -790.00M | 101.00M |
QBE Insurance Group Limited Technical Analysis
Negative
22.05
Price Trends
24.05
Negative
23.25
Negative
21.29
Positive
Market Momentum
-0.68
Positive
30.89
Neutral
20.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:QBE, the sentiment is Negative. The current price of 22.05 is below the 20-day moving average (MA) of 23.16, below the 50-day MA of 24.05, and above the 200-day MA of 21.29, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 30.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:QBE.
QBE Insurance Group Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$18.17B | 18.13 | 14.06% | 3.56% | 9.36% | -24.51% | |
73 Outperform | AU$32.57B | 10.81 | 18.63% | 4.23% | 3.37% | 6.40% | |
69 Neutral | AU$13.19B | 20.70 | 26.74% | 3.54% | 9.29% | 27.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | AU$3.90B | 37.85 | 11.69% | 2.95% | 5.84% | -49.20% | |
67 Neutral | AU$20.38B | 19.38 | 10.06% | 3.58% | -2.94% | -31.48% | |
65 Neutral | AU$6.46B | 24.31 | 11.48% | 3.70% | 16.76% | -19.90% |
* Financial Sector Average
AU:QBE
QBE Insurance Group Limited
21.93
1.68
8.32%
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Steadfast Group Limited
5.84
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AU:SUN
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18.85
-1.45
-7.13%
QBE Insurance Group Limited Corporate Events
QBE Updates Securities Trading Policy in Line with ASX Rules
Aug 17, 2026
QBE Insurance Group has released a revised Securities Trading Policy, effective 14 August 2026, in line with the requirements of ASX Listing Rule 12.10. The updated policy, authorised for release by the company secretary, is intended to provide th...
QBE Publishes 2026 Half-Year Results and Investor Presentation
Aug 13, 2026
QBE Insurance Group has released its financial results for the half year ended 30 June 2026 and prepared a detailed presentation for investors and analysts. The company indicated that this presentation, authorised by the board, will be delivered t...
QBE Releases Half-Year 2026 Investor Report
Aug 13, 2026
QBE Insurance Group has released its Investor Report for the half year ended 30 June 2026, providing the market with updated financial and operational information. The report, authorised by the company’s board of directors, is intended for i...
QBE posts strong half‑year profit, lifts dividend and accelerates capital efficiency drive
Aug 13, 2026
QBE Insurance Group reported a solid first half to 30 June 2026, delivering a 17.7% return on equity and a 4% rise in adjusted earnings per share in U.S. dollar terms, supported by 6% gross written premium growth on a constant currency basis. The ...
QBE Declares Interim Dividend of AUD 0.33 Per Share
Aug 13, 2026
QBE Insurance Group has announced an ordinary interim dividend of AUD 0.33 per fully paid share for the six-month period ended 30 June 2026. The dividend will trade ex-dividend on 24 August, with a record date of 25 August and payment scheduled fo...
QBE posts higher first-half profit, lifts insurance result and declares interim dividend
Aug 13, 2026
QBE Insurance Group reported a modest rise in first-half 2026 net profit after tax to US$1,033 million, up 1% year on year, as insurance revenue grew 10% to US$11,953 million and gross written premium expanded, particularly across its Internationa...
QBE reshapes Group and Australia Pacific boards to strengthen governance
Aug 5, 2026
QBE Insurance Group has announced a series of board changes affecting its Group and Australia Pacific Boards, effective 1 September 2026, subject to regulatory approvals. Melanie Willis AM will move from her role as Chair of the Australia Pacific ...
QBE Insurance Sets Out Key 2027 Financial and Dividend Dates
Aug 4, 2026
QBE Insurance Group has released its 2027 financial calendar, outlining key dates for full-year and half-year results announcements, dividend declarations, ex-dividend trading, record dates, and dividend payment schedules. The timetable also detai...
QBE CEO for Australia Pacific to Retire in 2026 as Insurer Plans Leadership Transition
Jul 7, 2026
QBE Insurance Group has announced that Sue Houghton, Chief Executive Officer for the Australia Pacific division, intends to retire from the company at the end of 2026 after more than five years with QBE and a 35-year career in financial services. ...
QBE Flags Lapse of Employee Conditional Rights, Trimming Potential Equity Overhang
Jul 7, 2026
QBE Insurance Group Limited, a major general insurer listed on the ASX, offers diversified insurance and risk solutions to businesses and individuals worldwide. Its capital structure includes employee conditional rights that support long-term ince...
QBE Appoints New Director Christopher Harris With No Initial Equity Interests
Jul 6, 2026
QBE Insurance Group Limited has appointed Christopher Harris as a director effective 6 July 2026. The company has disclosed to the ASX that Harris currently holds no relevant interests in QBE securities and has no interests in contracts related to...
QBE Issues New Unquoted Employee Conditional Rights Under Incentive Scheme
Jun 23, 2026
QBE Insurance Group Limited has notified the market of the issue of 17,217 unquoted employee conditional rights under its employee incentive scheme. These securities, identified under the ASX code QBEAL, were issued on June 18, 2026, and are subje...
QBE Issues 5,000 Subordinated Convertible Notes to Bolster Capital Structure
Jun 22, 2026
QBE Insurance Group Limited has notified the market of the issue of 5,000 subordinated convertible notes, designated under the ASX security code QBEAJ. The notes were issued on 17 June 2026 as unquoted securities, reflecting a capital management a...
QBE Redeems Tranche of Subordinated Convertible Notes
Jun 21, 2026
QBE Insurance Group Limited has notified the cessation of a tranche of its subordinated convertible notes listed on the ASX under the code QBEAJ. The 2,621 notes ceased on June 17, 2026, following repayment or redemption of the convertible debt se...
QBE completes redemption of USD subordinated notes and delists issue from SGX
Jun 18, 2026
QBE Insurance Group Limited has completed the full redemption of its USD524.1 million 5.875% fixed rate subordinated notes, originally issued in 2016 and due in 2046. The redemption was finalised on 17 June 2026, after which the notes were cancell...
QBE boosts Tier 2 capital with €500m subordinated note issue
Jun 16, 2026
QBE Insurance Group has issued EUR 500 million in fixed rate resetting subordinated notes under its US$5.5 billion note issuance programme, structured as Tier 2 regulatory capital that can convert into ordinary shares if a non-viability trigger ev...
QBE Plans Euro Subordinated Notes Issue to Bolster Tier 2 Capital
Jun 10, 2026
QBE Insurance Group Limited has announced a proposed issuance of euro-denominated Fixed Rate Resetting Subordinated Notes under its existing Note Issuance Programme, subject to market conditions and terms. The transaction is intended to qualify as...
QBE issues 5,115 new ordinary shares from conversion of unquoted securities
Jun 4, 2026
QBE Insurance Group has notified the market of the issue of 5,115 ordinary fully paid shares following the conversion or exercise of previously unquoted securities. The small-scale issuance, dated 2 June 2026, marginally increases the company̵...
QBE completes issuance of unquoted securities tied to prior transaction
May 24, 2026
QBE Insurance Group has notified the ASX of the issue of unquoted securities, following a previously flagged transaction under an earlier Appendix 3B filing. The new securities were issued on 19 May 2026, are not intended to be quoted on the excha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.