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QBE Insurance Group Limited
(Sydney:QBE)
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Rating:77Outperform
Price Target:
AU$28.00
▲(12.68% Upside)
Action:Reiterated
Date:08/06/26
Overall score is driven primarily by strengthening financial performance (notably higher net income and very strong 2025 operating/free cash flow) and a supportive valuation profile (moderate P/E and strong dividend yield). The earnings call adds confidence via upbeat guidance and capital strength, while the technical picture is only neutral-to-weak in the near term, limiting the overall score.
Positive Factors
Cash Generation
QBE's materially stronger operating and free cash flows in 2025 signal durable cash-generation ability from underwriting and investments. High FCF conversion supports ongoing claim payments, reinvestment in underwriting capacity, and reliable capital returns (dividends/buybacks), enhancing financial flexibility across cycles.
Negative Factors
U.S. Specialty Underperformance
Persistent losses in U.S. specialty lines (e.g., A&H, Aviation) create a structural drag: these segments can require extended remediation through higher rates, tighter terms or reserve strengthening. Given their scale and volatility, underperformance could materially reduce group underwriting margins and require ongoing capital allocation to stabilize results.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
QBE's materially stronger operating and free cash flows in 2025 signal durable cash-generation ability from underwriting and investments. High FCF conversion supports ongoing claim payments, reinvestment in underwriting capacity, and reliable capital returns (dividends/buybacks), enhancing financial flexibility across cycles.
Read all positive factors
QBE Insurance Group Limited (QBE) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$36.95B
Dividend Yield4.25%
Average Volume (3M)3.66M
Price to Earnings (P/E)12.1
Beta (1Y)0.61
Revenue Growth8.05%
EPS Growth25.40%
CountryAU
Employees13,196
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.43
Shares Outstanding1,494,024,400
10 Day Avg. Volume4,045,955
30 Day Avg. Volume3,658,213
Financial Highlights & Ratios
PEG Ratio0.39
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$25.53Price Target Upside2.75% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.4
Revenue Forecast (FY)AU$20.27B
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:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 14, 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 | 5.53B | 5.20B | 3.13B | 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 | 40.51B | 40.42B |
| 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 | 2.63B |
| 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
Neutral
24.85
Price Trends
24.42
Negative
23.35
Positive
21.35
Positive
Market Momentum
0.03
Positive
42.71
Neutral
18.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:QBE, the sentiment is Neutral. The current price of 24.85 is below the 20-day moving average (MA) of 25.10, above the 50-day MA of 24.42, and above the 200-day MA of 21.35, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$36.95B | 12.15 | 19.29% | 4.23% | 8.05% | 25.40% | |
73 Outperform | AU$20.34B | 21.09 | 9.55% | 3.58% | 6.10% | -29.98% | |
72 Outperform | AU$19.85B | 18.46 | 14.85% | 3.56% | 8.36% | -13.93% | |
69 Neutral | AU$14.24B | 30.76 | 19.79% | 3.54% | 5.81% | -5.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | AU$5.66B | 15.97 | 15.06% | 3.70% | 11.53% | 51.82% | |
60 Neutral | AU$3.64B | 17.20 | 11.69% | 2.95% | 11.02% | 62.95% |
* Financial Sector Average
AU:QBE
QBE Insurance Group Limited
24.36
2.08
9.35%
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29.68
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0.98%
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0.32
6.49%
AU:SDF
Steadfast Group Limited
5.28
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AU:SUN
Suncorp Group
19.39
-0.89
-4.41%
QBE Insurance Group Limited Corporate Events
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...
QBE updates ASX filing after completing bookbuild for proposed securities issue
May 12, 2026
QBE Insurance Group Limited has lodged an updated Appendix 3B with the ASX detailing a proposed issue of securities, marking this filing as an amendment to a previous announcement. The company states that the update is driven by the completion of ...
QBE prices AUD500 million Additional Tier 1 Capital Notes
May 12, 2026
QBE Insurance Group Limited has priced an issue of AUD500 million wholesale Floating Rate Capital Notes under its Note Issuance Programme, which will qualify as Additional Tier 1 Capital under APRA’s capital adequacy standards. The notes for...
QBE Plans Wholesale AUD Floating Rate Capital Notes to Bolster AT1 Capital
May 11, 2026
QBE Insurance Group Limited has announced a proposed issue of wholesale Australian dollar floating rate capital notes under its existing note issuance programme, subject to market conditions and final terms. The company plans to use the proceeds t...
QBE to Redeem USD524 Million Subordinated Notes in June 2026
May 10, 2026
QBE Insurance Group Limited will redeem in full its USD524,124,000 5.875% Fixed Rate Subordinated Notes due 2046, originally issued in 2016, on 17 June 2026 at par plus accrued and unpaid interest. The redemption, which has received approval from ...
QBE Director Michael Wilkins Departs Board, Discloses Final Share Interests
May 8, 2026
QBE Insurance Group Limited has announced that director Michael Wilkins has ceased to be a director of the company as of 8 May 2026. According to the final director’s interest notice lodged with the ASX, Wilkins holds indirect interests in a...
QBE Investors Back Board and Pay, Reject Climate Proposals at 2026 AGM
May 8, 2026
QBE Insurance Group has released the voting outcomes from its 2026 Annual General Meeting, detailing proxy, direct, and poll results on key resolutions. Shareholders supported the adoption of the remuneration report, the grant of long-term incenti...
QBE Highlights Resilient 2025 Performance and Push for Global Risk Resilience
May 8, 2026
QBE Insurance Group used its 2026 Annual General Meeting to highlight another year of resilient progress in 2025, crediting disciplined execution of its strategy and strong operational foundations across the group. The company emphasised the essen...
QBE Reaffirms 2026 Outlook as Premium Growth Accelerates in First Quarter
May 8, 2026
QBE Insurance Group reported a solid start to 2026, highlighting targeted premium growth supported by resilient underwriting and disciplined investment management. The company reaffirmed its outlook for mid-single-digit gross written premium growt...
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.