QBE Insurance Group Limited (AU:QBE)
ASX:QBE
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QBE Insurance Group Limited
(Sydney:QBE)
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Rating:83Outperform
Price Target:
AU$25.00
▲(10.67% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by strengthening financial performance (higher earnings and materially improved cash generation) and supportive earnings-call guidance on growth, combined ratio, ROE and capital returns. Valuation is also favorable (low P/E and high dividend yield). Technicals are constructive but less decisive, while risks center on earnings volatility typical of the sector, U.S. specialty remediation needs, and the 2025 increase in debt.
Positive Factors
Strong cash generation
QBE's operating and free cash flow expanded materially in 2025, with strong free-cash-flow conversion historically. Durable cash generation supports underwriting volatility, funds dividends and buybacks, enables reinvestment and reduces reliance on external financing for capital management.
Negative Factors
Earnings and cash-flow volatility
QBE's earnings and cash flows have been materially volatile (including a 2020 loss and variable FCF trends). That cyclicality reduces multi-period earnings predictability, complicates capital planning and makes underwriting and investment returns more sensitive to economic and claims cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
QBE's operating and free cash flow expanded materially in 2025, with strong free-cash-flow conversion historically. Durable cash generation supports underwriting volatility, funds dividends and buybacks, enables reinvestment and reduces reliance on external financing for capital management.
Read all positive factors
QBE Insurance Group Limited (QBE) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$33.93B
Dividend Yield4.68%
Average Volume (3M)3.66M
Price to Earnings (P/E)13.4
Beta (1Y)0.66
Revenue Growth5.93%
EPS Growth14.80%
CountryAU
Employees13,275
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.05
Shares Outstanding1,501,791,600
10 Day Avg. Volume4,045,955
30 Day Avg. Volume3,658,213
Financial Highlights & Ratios
PEG Ratio0.38
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$24.21Price Target Upside7.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.33
Revenue Forecast (FY)AU$20.34B
QBE Insurance Group Limited Business Overview & Revenue Model
Company Description
QBE Insurance Group Limited underwrites general insurance and reinsurance risks. The company offers range of commercial, personal, and specialty products, such as commercial and domestic property, motor and motor casualty, agriculture, public/prod...
How the Company Makes Money
QBE primarily makes money through underwriting income and investment income. Underwriting income is generated by selling insurance and reinsurance policies and collecting premiums upfront; QBE then pays out claims and incurs operating expenses (in...
QBE Insurance Group Limited Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial performance: robust profitability (USD 2.1bn profit, ~20% ROE), above-guidance top-line growth, improved combined ratio, record investment returns, stronger capital metrics and active capital management (dividend increase, buyback, ratings upgrades). Headwinds were concentrated in U.S. specialty (A&H, Aviation), crop-related net revenue impacts from increased cessions, some rate softening in pockets (Lloyd's, reinsurance), and elevated large-claim risk historically. Management provided medium-term guidance of mid-single-digit GWP growth and 15%+ ROE and outlined measures (pricing, portfolio remediation, alternative capital, expense efficiency and AI deployment) to sustain performance. Overall, the highlights materially outweigh the lowlights.Positive Updates
Strong Profitability and ROE
Post-tax profit of USD 2.1 billion and EPS up ~25% for the year; Return on Equity increased to ~19.8% (around 20%), marking QBE's fourth consecutive double-digit ROE and outperformance versus guidance.
Negative Updates
U.S. Specialty Underperformance
U.S. specialty businesses (notably Accident & Health and Aviation) saw elevated claims and large losses, pushing parts of U.S. specialty to a combined operating ratio above 100% and weighing on divisional results.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profitability and ROE
Post-tax profit of USD 2.1 billion and EPS up ~25% for the year; Return on Equity increased to ~19.8% (around 20%), marking QBE's fourth consecutive double-digit ROE and outperformance versus guidance.
Read all positive updates
Company Guidance
QBE’s guidance reiterated mid‑single‑digit GWP growth for 2026 and over the medium term (next three years), a 2026 combined operating ratio around 92.5%, and a Group ROE trending at 15%+ (assuming an effective tax rate of ~25% and investment returns sustained at 3%+); management said >90% of the portfolio is expected to be at or above rate adequacy, expects an expense ratio of ~12% in 2026 (down from 12.4% in 2025), and confirmed a 40–60% dividend payout framework (current payout 50%, full‑year dividend AUD 1.09, final AUD 0.78, franking 30%) with buybacks to return surplus capital (≈$90m executed to date). Capital flexibility remains strong with a year‑end PCA multiple of 1.87x (pro‑forma ~1.73x after distributions), a lowered group catastrophe budget (~$1.13bn) and CAP attachment reduced to $250m, and management expects ongoing surplus capital generation supported by alternative capital levers; for context 2025 results included GWP $24bn (+7%), combined ratio 91.9%, profit ~$2.1bn, EPS +~25% and an investment return of 4.9% (~$1.6bn income).QBE Insurance Group Limited Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.96B | 18.75B | 17.45B | 13.40B | 13.53B |
| Gross Profit | 24.96B | 21.41B | 21.85B | 6.08B | 13.53B |
| EBITDA | 3.41B | 2.69B | 2.20B | 1.27B | 1.22B |
| Net Income | 2.23B | 1.78B | 1.35B | 587.00M | 750.00M |
Balance Sheet | |||||
| Total Assets | 49.19B | 43.85B | 42.11B | 33.22B | 43.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.87B | 1.64B | 1.37B | 839.44M | 819.00M |
| Total Debt | 4.11B | 2.90B | 3.09B | 3.04B | 3.61B |
| Total Liabilities | 37.51B | 33.12B | 32.16B | 24.30B | 34.38B |
| Stockholders Equity | 11.68B | 10.73B | 9.93B | 8.86B | 8.85B |
Cash Flow | |||||
| Free Cash Flow | 4.35B | 2.34B | 1.33B | 2.63B | 2.54B |
| Operating Cash Flow | 4.37B | 2.58B | 1.50B | 2.79B | 2.75B |
| Investing Cash Flow | -2.97B | -1.48B | -428.00M | -2.01B | -2.77B |
| Financing Cash Flow | -1.11B | -745.00M | -498.00M | -790.00M | 101.00M |
QBE Insurance Group Limited Technical Analysis
Positive
22.59
Price Trends
20.52
Positive
19.73
Positive
20.12
Positive
Market Momentum
0.53
Negative
75.71
Negative
94.08
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 22.59 is above the 20-day moving average (MA) of 21.34, above the 50-day MA of 20.52, and above the 200-day MA of 20.12, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 75.71 is Negative, neither overbought nor oversold. The STOCH value of 94.08 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | AU$33.93B | 13.45 | 19.29% | 4.68% | 5.93% | 14.80% | |
73 Outperform | AU$17.67B | 18.10 | 9.55% | 26.88% | -0.54% | 26.37% | |
72 Outperform | AU$17.04B | 9.34 | 14.85% | 3.91% | 8.47% | 54.09% | |
69 Neutral | AU$12.45B | 10.89 | 19.79% | 3.73% | 6.37% | 1.73% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | AU$4.68B | 11.48 | 15.06% | 3.70% | 9.16% | 43.16% | |
60 Neutral | AU$3.17B | 25.45 | 11.17% | 2.95% | 10.98% | 23.05% |
* Financial Sector Average
AU:QBE
QBE Insurance Group Limited
22.83
2.93
14.71%
AU:AUB
AUB Group
24.65
-4.97
-16.78%
AU:IAG
Insurance Australia Group Limited
7.35
-0.14
-1.80%
AU:MPL
Medibank Private
4.55
0.30
7.13%
AU:SDF
Steadfast Group Limited
4.24
-1.20
-22.06%
AU:SUN
Suncorp Group
16.33
-2.08
-11.29%
QBE Insurance Group Limited Corporate Events
QBE Cancels 8.3 Million Shares in On-Market Buy-Back
Mar 19, 2026
QBE Insurance Group Limited has cancelled 8,266,954 ordinary fully paid shares following completion of an on-market share buy-back, as disclosed in its latest capital notification to the ASX. The reduction in issued capital may enhance earnings pe...
QBE Updates Market on Progress of On-Market Share Buy-Back
Mar 12, 2026
QBE Insurance Group has provided an updated notification on its on-market share buy-back, covering its ordinary fully paid shares traded on the ASX. The program, originally notified in November 2025, is being reported to the market on a daily basi...
QBE Updates Market on Progress of On‑Market Share Buy-Back
Mar 9, 2026
QBE Insurance Group has provided an updated notification to the ASX on progress under its on-market share buy-back program involving its ordinary fully paid shares. The latest daily report shows that a total of 8,982,616 shares had been repurchase...
QBE Updates Market on Progress of Ongoing Share Buy‑Back
Mar 8, 2026
QBE Insurance Group Limited has provided an update on its ongoing on‑market share buy‑back program for its ordinary fully paid shares. The company reported that a total of 8,391,057 shares had been repurchased prior to the latest tradi...
QBE Faces Shareholder-Requisitioned Resolutions at 2026 AGM
Mar 5, 2026
QBE Insurance Group has disclosed that shareholders have formally requisitioned resolutions under section 249N of the Corporations Act for consideration at the company’s 2026 Annual General Meeting in Sydney on 8 May 2026. The resolutions, l...
QBE updates market on CEO Andrew Horton’s share transactions and equity holdings
Mar 4, 2026
QBE Insurance Group has disclosed changes in the holdings of its chief executive, Andrew Horton, following the vesting, sale, and transfer of certain equity awards. The filing details movements between unlisted conditional rights and fully paid or...
QBE Updates Market on Progress of On-Market Share Buy-Back
Mar 3, 2026
QBE Insurance Group Limited has provided an updated notification to the ASX regarding its on-market share buy-back of fully paid ordinary shares. The update confirms that the company is continuing to execute its previously announced capital manage...
QBE Reports Lapse of 416,088 Employee Conditional Rights
Feb 26, 2026
QBE Insurance Group Limited has notified the market that 416,088 employee conditional rights, trading under ASX code QBEAL, have lapsed. The lapse occurred because the conditions attached to these rights were not met or could no longer be satisfie...
QBE Issues New Tranche of Unquoted Employee Conditional Rights
Feb 26, 2026
QBE Insurance Group Limited has notified the market of the issue of 77,363 unquoted employee conditional rights under its employee incentive scheme. These securities, which are subject to transfer restrictions and are not quoted on the ASX, were i...
QBE Discloses Lapse of Director Andrew Horton’s Incentive Rights
Feb 26, 2026
QBE Insurance Group has reported a change in the security holdings of its director, Andrew Horton, reflecting adjustments to his incentive-related interests. The filing details the lapse of a portion of his unlisted conditional rights under the co...
QBE Updates Market on Progress of On-Market Share Buy-Back
Feb 24, 2026
QBE Insurance Group has updated the market on its on-market share buy-back program for its ordinary fully paid shares. The company reported that it had repurchased a cumulative 4,638,290 shares before the previous trading day and a further 753,934...
QBE Releases Investor Presentation on 2025 Full-Year Results
Feb 19, 2026
QBE Insurance Group has released a presentation detailing its financial and operational results for the year ended 31 December 2025, following the formal announcement of those results to the market. The presentation is being delivered to investors...
QBE lifts profit, premiums and dividend on stronger 2025 performance
Feb 19, 2026
QBE Insurance Group reported a strong 2025 financial performance, with statutory net profit after tax rising to US$2.16 billion from US$1.78 billion and adjusted net profit increasing to US$2.13 billion. The insurer generated an adjusted return on...
QBE Releases Investor Report for Year Ended 31 December 2025
Feb 19, 2026
QBE Insurance Group has released its Investor Report for the year ended 31 December 2025. The report, authorised by the QBE Board of Directors, provides investors and the market with the company’s latest annual financial and operational info...
QBE Declares AUD 0.78 Interim Dividend for December 2025 Half
Feb 19, 2026
QBE Insurance Group has declared an ordinary fully paid share dividend of AUD 0.78 for the six‑month period ended 31 December 2025, payable on 17 April 2026. The stock will trade ex‑dividend on 5 March 2026, with a record date of 6 Mar...
QBE profit jumps 21% on stronger underwriting and investment returns
Feb 19, 2026
QBE Insurance Group reported a 5% rise in insurance revenue to US$22.96 billion for 2025, with net profit after tax attributable to ordinary equity holders increasing 21% to US$2.16 billion. The statutory insurance operating result climbed to US$2...
QBE Announces Lapse of 23,553 Employee Conditional Rights
Jan 8, 2026
QBE Insurance Group Limited has announced the cessation of 23,553 employee conditional rights (security code QBEAL) after they lapsed on 31 December 2025 because the conditions attached to those rights were not, or could no longer be, satisfied. T...
QBE Cancels 4.6 Million Shares After On‑Market Buy‑Back
Jan 4, 2026
QBE Insurance Group Limited has cancelled 4,638,290 ordinary fully paid shares following completion of an on‑market buy-back, effective 29 December 2025. The reduction in issued capital forms part of the insurer’s capital management in...
QBE Director Peter Wilson Steps Down, Holds Indirect Stake in Shares
Dec 31, 2025
QBE Insurance Group has announced that director Peter Wilson ceased to be a director of the company effective 31 December 2025, with his previous director’s interest notice dated 15 August 2025. At the time of his departure, Wilson held no Q...
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.