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QBE Insurance Group Limited
(Sydney:QBE)
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Rating:73Outperform
Price Target:
AU$30.00
â–˛(36.05% 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 scale
Sustained mid-single-digit premium growth indicates continued demand and expanding underwriting scale. Underlying growth near 7% after noncore exits is especially supportive because it suggests the business is growing through its active portfolio rather than relying solely on legacy or discontinued operations.
Negative Factors
A&H claims inflation
Claims inflation materially above assumptions pressures margins and can force QBE to reduce volumes while repricing and restoring adequacy. The provision and intentional pullback indicate that remediation may weigh on near-term growth and demonstrate ongoing sensitivity to loss-cost trends in this line.
Read all positive and negative factors
Positive Factors
Negative Factors
Premium growth and scale
Sustained mid-single-digit premium growth indicates continued demand and expanding underwriting scale. Underlying growth near 7% after noncore exits is especially supportive because it suggests the business is growing through its active portfolio rather than relying solely on legacy or discontinued operations.
Read all positive factors
QBE Insurance Group Limited (QBE) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$39.60B
Dividend Yield4.19%
Average Volume (3M)3.65M
Price to Earnings (P/E)12.9
Beta (1Y)0.54
Revenue Growth3.37%
EPS Growth6.40%
CountryAU
Employees13,196
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.45
Shares Outstanding1,494,154,500
10 Day Avg. Volume3,954,478
30 Day Avg. Volume3,654,855
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$25.24Price Target Upside14.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.41
Revenue Forecast (FY)AU$19.79B
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 | 2.71B | 2.26B | 1.34B | 1.33B |
| 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
Positive
22.05
Price Trends
23.43
Positive
23.82
Positive
22.34
Positive
Market Momentum
0.84
Negative
75.35
Negative
96.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:QBE, the sentiment is Positive. The current price of 22.05 is below the 20-day moving average (MA) of 24.79, below the 50-day MA of 23.43, and below the 200-day MA of 22.34, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 75.35 is Negative, neither overbought nor oversold. The STOCH value of 96.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$39.60B | 12.86 | 18.63% | 4.19% | 3.37% | 6.40% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | AU$3.84B | 37.72 | 5.61% | 3.33% | 5.84% | -49.20% | |
66 Neutral | AU$13.74B | 21.70 | 26.74% | 3.85% | 9.29% | 27.49% | |
65 Neutral | AU$6.44B | 24.21 | 11.48% | 3.61% | 16.76% | -19.90% | |
65 Neutral | AU$21.61B | 21.24 | 10.06% | 3.25% | -2.94% | -31.48% | |
62 Neutral | AU$20.87B | 20.74 | 14.06% | 3.59% | 9.36% | -24.51% |
* Financial Sector Average
AU:QBE
QBE Insurance Group Limited
26.50
7.39
38.63%
AU:AUB
AUB Group
29.42
-5.29
-15.24%
AU:IAG
Insurance Australia Group Limited
8.92
1.30
17.01%
AU:MPL
Medibank Private
4.99
0.40
8.64%
AU:SDF
Steadfast Group Limited
5.81
-0.27
-4.38%
AU:SUN
Suncorp Group
20.39
1.47
7.78%
QBE Insurance Group Limited Corporate Events
QBE Issues New Shares Following Conversion of Unquoted Securities
Oct 20, 2026
QBE Insurance Group Limited has notified the market of the issue of 2,304 new ordinary fully paid shares following the conversion or exercise of unquoted securities. The shares, issued on 15 October 2026 and disclosed via an Appendix 3G filing, re...
QBE director Stephen Ferguson increases stake via bonus share issue
Oct 6, 2026
QBE Insurance Group has reported a change in the indirect shareholding of director Stephen Ferguson under its directors’ share acquisition arrangements. Ferguson received an issue of 90 fully paid ordinary shares at $22.75 per share under th...
QBE Insurance Seeks ASX Quotation for Additional Dividend Plan Shares
Oct 6, 2026
QBE Insurance Group has applied for quotation on the ASX of 130,083 ordinary fully paid shares issued on 2 October 2026 under a dividend or distribution plan. The additional securities modestly expand QBE’s listed share capital, providing pa...
QBE Reports Lapse of Employee Conditional Rights and Cessation of Securities
Oct 2, 2026
QBE Insurance Group Limited has notified the market of a cessation of certain employee equity-linked securities, following the lapse of conditional rights that failed to meet required performance or service conditions. The announcement details tha...
QBE Names Jonathan Groves CEO of Australia Pacific Division
Sep 21, 2026
QBE Insurance Group has appointed Jonathan Groves as Chief Executive Officer of its Australia Pacific division, effective 1 November 2026, with the role based in Sydney and subject to regulatory approvals. He will join the Group Executive Committe...
QBE Updates Pricing for Interim Dividend Reinvestment and Bonus Share Plans
Sep 21, 2026
QBE Insurance Group Limited has updated its previously announced interim dividend for ordinary fully paid shares to reflect revised pricing under its Dividend Reinvestment Plan and bonus share plan. The distribution relates to the six-month period...
QBE Issues 29,960 New Ordinary Shares from Unquoted Securities Conversion
Sep 6, 2026
QBE Insurance Group Limited has notified the market of the issue of 29,960 ordinary fully paid shares following the conversion or exercise of previously unquoted securities. The new shares, issued on 2 September 2026, modestly increase QBE’s...
QBE appoints Melanie Willis to board and discloses director share interests
Sep 1, 2026
QBE Insurance Group Limited has announced the appointment of Melanie Willis as a director effective 1 September 2026, expanding its board leadership. This move reflects ongoing governance and oversight arrangements as the company continues to mana...
QBE Redeems Subordinated Convertible Notes, Updates Capital Structure
Aug 31, 2026
QBE Insurance Group Limited has notified the cessation of 50,000 subordinated convertible notes (ASX code QBEAJ), following their repayment or redemption without conversion on August 25, 2026. The move slightly reduces QBE’s outstanding conv...
QBE Completes Redemption of A$500m Subordinated Notes
Aug 26, 2026
QBE Insurance Group Limited has completed the redemption of its A$500 million floating rate subordinated notes due 2036, originally issued in 2020. The notes outstanding as of 25 August 2026 have been fully redeemed, marking the closure of this sp...
QBE Issues Unquoted Employee Conditional Rights Under Incentive Scheme
Aug 20, 2026
QBE Insurance Group Limited has notified the market of the issue of 50,460 unquoted employee conditional rights, recorded under ASX security code QBEAL, with an issue date of 17 August 2026. These securities are granted under an employee incentive...
QBE Issues 316,438 New Ordinary Shares Following Option Conversions
Aug 19, 2026
QBE Insurance Group Limited has notified the market of the issue and transfer of 316,438 ordinary fully paid shares on August 17, 2026. The new securities arise from the exercise or conversion of previously unquoted options or other convertible se...
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...
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.