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QBE Insurance Group Limited (AU:QBE)
:QBE
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QBE Insurance Group Limited (QBE) AI Stock Analysis

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AU:QBE

QBE Insurance Group Limited

(OTC:QBE)

Rating:74Outperform
Price Target:
AU$24.00
▲(11.94% Upside)
QBE Insurance's overall stock score reflects strong financial performance and positive earnings call sentiment as the most significant factors. The company's robust revenue and profit growth, coupled with strategic plans for future growth, contribute positively. However, mixed technical indicators and challenges in specific segments slightly temper the score.

QBE Insurance Group Limited (QBE) vs. iShares MSCI Australia ETF (EWA)

QBE Insurance Group Limited Business Overview & Revenue Model

Company DescriptionQBE Insurance Group Limited is a leading global insurer and reinsurer, headquartered in Sydney, Australia. The company operates in multiple segments including North America, Europe, and Asia Pacific, offering a wide range of insurance products and services. QBE's core offerings encompass general insurance and reinsurance, providing coverage across property, motor, marine, aviation, and financial lines, among others. With a focus on delivering tailored risk management solutions, QBE serves a diverse clientele including individuals, small businesses, and large multinational corporations.
How the Company Makes MoneyQBE Insurance Group Limited generates revenue primarily through the underwriting and sale of insurance policies across its global operations. The company's key revenue streams include premium income from policyholders and investment income from the management of its insurance funds. Premiums are collected in exchange for providing coverage against various insured risks, while investment income is earned by investing the float – the pool of premiums collected before claims are paid out. Additionally, QBE benefits from reinsurance services, where it assumes or cedes risks with other insurance companies to balance its portfolio and optimize capital efficiency. These activities, combined with strategic partnerships and an extensive distribution network, contribute significantly to QBE's earnings.

QBE Insurance Group Limited Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q4-2024)
|
% Change Since: -8.57%|
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record investment income, improved return on equity, and a solid capital position. However, challenges remain in the crop insurance sector and non-core segment losses in North America. The overall sentiment leans towards positive due to the significant achievements outweighing the challenges.
Q4-2024 Updates
Positive Updates
Strong Revenue and Growth
Headline growth of 3% includes a drag from exited lines and crop. Excluding these, QBE delivered underlying growth of around 9%. The combined operating ratio improved to 93.1% from the previous year.
Record Investment Income
QBE achieved a record investment result with a total income of around $1.5 billion, representing a return of almost 5%.
Return on Equity
QBE reported a return on equity of 18.2%, marking the highest in well over a decade.
Dividend Increase
The final dividend was announced at $0.63, bringing the full-year dividend to $0.87, which is 40% higher than the prior year and represents a full-year payout ratio of 50%.
Improved Catastrophe Costs
Catastrophe costs were comfortably below the allowance, marking the third consecutive year where natural catastrophe costs have trended at or below budget.
Capital Position
QBE's capital position remains very strong with the PCA multiple at 1.86x, and both S&P and Fitch revised their outlook on QBE from stable to positive.
Negative Updates
Underperformance in Crop
QBE's crop insurance performance was disappointing with a combined ratio of 99%, affected by drought and commodity price weakness in specific states.
North America Non-Core Segment Loss
The non-core segment in North America reported a loss of around $220 million due to exposure to convective storms and hurricanes.
Expense Ratio Increase
The expense ratio increased to 12.2%, primarily reflecting higher change spend to support modernization programs.
Company Guidance
In the QBE FY '24 call, the company reported a headline growth of 3% for the fiscal year, while underlying growth, excluding exited lines and crop, was around 9%. QBE's combined operating ratio improved to 93.1%, outperforming their plan of 93.5%. A record investment result yielded a total income of $1.5 billion, reflecting a return of almost 5%. The return on equity was 18.2%, the highest in over a decade. The balance sheet remains strong, with a final dividend of $0.63, bringing the full-year dividend to $0.87, a 40% increase from the previous year, and a payout ratio of 50%. For 2025, QBE anticipates mid-single-digit growth and aims to improve the combined operating ratio to around 92.5%. The company maintained a strong capital position with a PCA multiple of 1.86x and plans to continue focusing on growth opportunities, efficiency, and disciplined capital management.

QBE Insurance Group Limited Financial Statement Overview

Summary
QBE Insurance demonstrates strong financial performance with positive revenue growth and improved net profit margin. The balance sheet shows reduced leverage and robust equity growth. Cash flows are strong, with substantial operating cash flow increases, indicating a solid financial position and growth momentum.
Income Statement
85
Very Positive
QBE Insurance has shown a positive revenue growth trajectory with Total Revenue increasing from $21.68 billion in 2023 to $22.71 billion in 2024, a 4.75% increase. Gross Profit Margin remains robust at 100%, indicating strong operational efficiency. The Net Profit Margin improved significantly from 6.25% in 2023 to 7.84% in 2024, reflecting enhanced profitability. The EBIT and EBITDA margins, though not calculable due to revenue equaling gross profit and EBIT, show solid absolute figures and an upward trend in EBITDA, suggesting better core earnings performance.
Balance Sheet
78
Positive
The Debt-to-Equity ratio has improved, reflecting a reduction in leverage, with Total Debt decreasing while Stockholders' Equity increased to $10.73 billion in 2024. The Return on Equity stands strong at 16.58%, indicating efficient use of equity capital to generate profits. The Equity Ratio is consistent, suggesting a stable asset base primarily funded by equity, but there's room for improvement in asset efficiency.
Cash Flow
80
Positive
Operating Cash Flow has seen a substantial increase to $2.575 billion in 2024 from $1.503 billion in 2023, highlighting strong cash generation capabilities. Free Cash Flow increased to $2.341 billion, with a notable Free Cash Flow to Net Income Ratio, indicating effective conversion of profits to cash. The Free Cash Flow Growth Rate is impressive, underscoring robust cash performance, though there is slight volatility in financing activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.75B17.45B13.40B13.20B11.79B
Gross Profit18.75B17.45B13.40B13.20B11.79B
EBITDA2.46B186.67M153.79M146.79M190.49M
Net Income1.78B1.35B587.00M750.00M-1.52B
Balance Sheet
Total Assets43.85B42.11B33.22B43.24B40.61B
Cash, Cash Equivalents and Short-Term Investments1.64B1.37B569.27M593.63M587.44M
Total Debt2.90B3.09B3.07B3.61B4.25B
Total Liabilities33.12B32.16B24.30B34.38B33.05B
Stockholders Equity10.73B9.93B8.92B8.85B7.56B
Cash Flow
Free Cash Flow2.34B1.33B2.63B2.54B1.25B
Operating Cash Flow2.58B1.50B2.79B2.66B1.37B
Investing Cash Flow-1.48B-428.00M-1.98B-2.68B-2.41B
Financing Cash Flow-745.00M-498.00M-778.79M97.54M1.33B

QBE Insurance Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.44
Price Trends
50DMA
22.98
Negative
100DMA
22.44
Negative
200DMA
20.83
Positive
Market Momentum
MACD
-0.28
Positive
RSI
37.78
Neutral
STOCH
6.94
Positive
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 21.44 is below the 20-day moving average (MA) of 22.66, below the 50-day MA of 22.98, and above the 200-day MA of 20.83, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 37.78 is Neutral, neither overbought nor oversold. The STOCH value of 6.94 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
€3.68B22.6415.78%3.57%8.40%-22.95%
74
Outperform
AU$32.37B10.7218.97%4.06%5.93%14.80%
73
Outperform
$13.96B28.5220.97%3.39%5.21%-21.15%
72
Outperform
AU$1.44B6.5720.91%9.99%-6.90%-5.67%
72
Outperform
$19.35B15.3118.88%3.41%34.77%
67
Neutral
¥833.81B12.949.17%3.03%8.16%12.53%
67
Neutral
$21.77B15.439.52%4.51%-11.75%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:QBE
QBE Insurance Group Limited
21.44
5.97
38.58%
AU:HLI
Genworth Mortgage Insurance Australia Ltd
5.27
2.00
60.97%
AU:SUN
Suncorp Group
20.10
4.21
26.45%
AU:MPL
Medibank Private
5.07
1.31
34.88%
AU:IAG
Insurance Australia Group Limited
8.50
1.53
21.90%
AU:NHF
NIB Holdings Ltd
7.62
0.70
10.08%

QBE Insurance Group Limited Corporate Events

QBE Insurance Group Releases 2025 Half-Year Results
Aug 7, 2025

QBE Insurance Group Limited announced its half-year results for the period ending June 30, 2025. The presentation of these results is set to be delivered to investors and analysts, highlighting the company’s financial performance and strategic direction. This announcement, authorized by the QBE Board of Directors, is significant for stakeholders as it provides insights into the company’s operational health and future positioning within the industry.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Reports Strong First Half 2025 Results
Aug 7, 2025

QBE Insurance Group Limited reported a strong financial performance for the first half of 2025, with a statutory net profit after tax of $1,022 million, up from $802 million in the same period last year. The company achieved a 6% growth in gross written premiums, supported by organic growth and a strategic reshaping of its portfolio. The combined operating ratio improved to 92.8%, and investment income remained robust at $788 million. QBE’s capital position is strong, with a PCA multiple of 1.85x, and the board declared an interim dividend of 31 Australian cents per share.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Releases 2025 Half-Year Investor Report
Aug 7, 2025

QBE Insurance Group Limited has released its Investor Report for the half-year ending June 30, 2025. This report, authorized by the QBE Board of Directors, provides insights into the company’s financial performance and strategic direction for the first half of the year, potentially impacting its operational strategies and market positioning.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Announces Dividend Distribution for 2025
Aug 7, 2025

QBE Insurance Group Limited has announced a dividend distribution of AUD 0.31 per share for the six-month period ending June 30, 2025. The ex-dividend date is set for August 19, 2025, with a record date of August 20, 2025, and payment scheduled for September 26, 2025. This announcement reflects QBE’s ongoing commitment to returning value to its shareholders and may impact investor sentiment positively.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Reports Strong Half-Year Profit Growth
Aug 7, 2025

QBE Insurance Group Limited reported a 27% increase in net profit after tax for the half year ending June 30, 2025, reaching $1,022 million compared to $802 million in the previous period. This growth was driven by strong organic growth in International and North America, lower strain from exited lines, and favorable central estimate development. The company also benefited from supportive interest rates and strong risk asset returns, with net investment income rising significantly. The interim dividend will be partially franked, and the company plans to satisfy its Dividend Reinvestment Plan through on-market share purchases.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Issues Unquoted Employee Conditional Rights
Jun 25, 2025

QBE Insurance Group Limited announced the issuance of 25,408 unquoted employee conditional rights as part of an employee incentive scheme. These securities are subject to transfer restrictions and will not be quoted on the ASX until the restrictions are lifted, reflecting the company’s commitment to employee engagement and retention.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Group Achieves Credit Rating Upgrade
Jun 19, 2025

QBE Insurance Group Limited has announced that Fitch Ratings has upgraded the Financial Strength Rating of its core operating entities to AA- from A+, and its long-term Issuer Default Rating to A from A-, both with a stable outlook. This upgrade follows a similar rating increase by S&P Global Ratings and marks a significant milestone in QBE’s efforts to strengthen its business quality and resilience, potentially impacting its market positioning and stakeholder confidence positively.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Issues 60,000 Subordinated Convertible Notes
May 26, 2025

QBE Insurance Group Limited has announced the issuance of 60,000 subordinated convertible notes, which are unquoted equity securities. This move is part of the company’s financial strategy to strengthen its capital structure, potentially impacting its market position and providing implications for investors and stakeholders.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Group Sees Credit Rating Upgrade to AA-
May 23, 2025

QBE Insurance Group Limited announced that S&P Global Ratings has upgraded the Financial Strength Rating and long-term Issuer Credit Rating of its core operating entities to AA- from A+, with a stable outlook. This upgrade signifies a positive impact on QBE’s market positioning, potentially enhancing stakeholder confidence and improving the company’s competitive edge in the insurance sector.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Completes US$400 Million Capital Notes Buyback
May 19, 2025

QBE Insurance Group Limited has completed the resale and buyback of US$400 million in Perpetual Fixed Rate Resetting Capital Notes, which have now been cancelled. This move will result in the delisting of the notes from the Singapore Exchange Securities Trading Limited, potentially impacting QBE’s financial structure and market positioning.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Announces Director’s Interest Change
May 15, 2025

QBE Insurance Group Limited has announced a change in the director’s interest, specifically regarding Andrew Horton. The change involves the issuance of 267,584 unlisted conditional rights and 7,840 accrued notional bonus shares, reflecting an increase in Horton’s direct interest in the company. This development is part of QBE’s ongoing corporate governance and management strategies, potentially impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Issues Unquoted Securities for Employee Incentive
May 15, 2025

QBE Insurance Group Limited announced the issuance of 627,800 unquoted securities under an employee incentive scheme. These securities are subject to transfer restrictions and are not quoted on the ASX until the restrictions are lifted, which could impact employee retention and motivation strategies.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Prices AUD600 Million Subordinated Notes to Bolster Capital
May 15, 2025

QBE Insurance Group Limited has announced the pricing of AUD600 million in Subordinated Notes, which will be eligible as Tier 2 Capital under APRA’s capital adequacy framework. This issuance includes AUD275 million of Floating Rate Notes and AUD325 million of Fixed to Floating Rate Notes, both maturing in 2036. The move is part of QBE’s strategy to strengthen its capital base, with implications for its financial stability and market positioning.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$19.30 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Group Announces Proposed Subordinated Notes Issuance
May 13, 2025

QBE Insurance Group Limited has announced a proposed issuance of AUD Floating Rate and/or Fixed-to-Floating Rate Subordinated Notes as part of its ongoing funding and capital management strategy. This move aims to bolster QBE’s Tier 2 capital, with further details on pricing and issuance conditions to be announced later, reflecting the company’s strategic approach to maintaining financial stability and market competitiveness.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$20.10 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Completes US$500 Million Capital Notes Buyback
May 13, 2025

QBE Insurance Group Limited has successfully completed the resale and buyback of US$500 million of its Perpetual Fixed Rate Resetting Capital Notes. This strategic financial maneuver is expected to enhance QBE’s capital management and strengthen its financial position, potentially impacting its market standing and providing reassurance to stakeholders about the company’s fiscal health.

The most recent analyst rating on (AU:QBE) stock is a Buy with a A$20.10 price target. To see the full list of analyst forecasts on QBE Insurance Group Limited stock, see the AU:QBE Stock Forecast page.

QBE Insurance Announces Director Departure and Securities Interests
May 12, 2025

QBE Insurance Group Limited announced that Rolf Tolle has ceased to be a director as of May 9, 2025. The notice details Tolle’s relevant interests in securities, which include 35,000 fully paid ordinary shares held by HSBC Custody Nominees and 52,891 shares held by CPU Share Plans Pty Limited. This change in directorship may impact the company’s governance structure and could have implications for stakeholders monitoring the company’s leadership dynamics.

QBE Insurance Group Updates Constitution Following Shareholder Approval
May 9, 2025

QBE Insurance Group Limited has announced an amendment to its Constitution, which was approved by shareholders during the Annual General Meeting. This change reflects the company’s ongoing efforts to adapt its governance framework, potentially impacting its operational strategies and stakeholder engagement.

QBE Insurance Group Secures Strong Shareholder Support at 2025 AGM
May 9, 2025

QBE Insurance Group Limited held its 2025 Annual General Meeting where shareholders voted on several resolutions. The results showed strong support for the company’s proposals, with all resolutions carried, including the re-election of directors and amendments to the constitution. This indicates solid shareholder backing and may positively impact the company’s governance and strategic direction.

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.Date of analysis: Aug 09, 2025