QBE Insurance Group Limited (QBE) AI Stock Analysis

• Market Cap: $34.96B
• Dividend Yield: 5.44%
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.56
• Revenue Growth: 6.01%
• EPS Growth: 31.57%
• Country: AU
• Employees: 13,275
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.97
• Shares Outstanding: 1,510,015,300
• 10 Day Avg. Volume: 2,207,279
• 30 Day Avg. Volume: 2,608,946
• PEG Ratio: 1.69
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.06
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 0.65
• Enterprise Value/Ebitda: 0.34
• 1Y Price Target: $24.91
• Price Target Upside: 7.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: AU$26.00 ▲(12.31%Upside)

QBE Insurance's overall stock score reflects its strong financial performance and positive earnings call sentiment as the most significant factors. While technical indicators are mixed, the company's reasonable valuation and attractive dividend yield support its investment appeal.

QBE Insurance Group Limited Business Overview & Revenue Model

Company Description

QBE 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 Money

QBE 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 Financial Statement Overview

Summary

QBE Insurance demonstrates a strong financial position with notable revenue and profit growth. The income statement shows a 4.75% increase in revenue and improved net profit margins. The balance sheet reflects reduced leverage and strong equity growth, while cash flow statements highlight substantial operating and free cash flow increases. Overall, the company is financially stable with room for further optimization in leverage and asset utilization.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.75B	17.45B	13.40B	13.20B	11.79B
Gross Profit	18.75B	17.45B	13.40B	13.20B	11.79B
EBITDA	2.46B	186.67M	153.79M	146.79M	190.49M
Net Income	1.78B	1.35B	587.00M	750.00M	-1.52B
Balance Sheet
Total Assets	43.85B	42.11B	33.22B	43.24B	40.61B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.37B	569.27M	593.63M	587.44M
Total Debt	2.90B	3.09B	3.07B	3.61B	4.25B
Total Liabilities	33.12B	32.16B	24.30B	34.38B	33.05B
Stockholders Equity	10.73B	9.93B	8.92B	8.85B	7.56B
Cash Flow
Free Cash Flow	2.34B	1.33B	2.63B	2.54B	1.25B
Operating Cash Flow	2.58B	1.50B	2.79B	2.66B	1.37B
Investing Cash Flow	-1.48B	-428.00M	-1.98B	-2.68B	-2.41B
Financing Cash Flow	-745.00M	-498.00M	-778.79M	97.54M	1.33B

QBE Insurance Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 23.15 is above the 20-day moving average (MA) of 22.99, above the 50-day MA of 23.08, and above the 200-day MA of 20.29, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 59.53 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHF	81 Outperform	€3.57B	21.96	15.78%	3.68%	8.40%	-22.95%
QBE	79 Outperform	$34.96B	13.26	17.21%	5.44%	6.01%	31.57%
SUN	74 Outperform	$22.34B	15.84	9.52%	5.58%	-11.75%	―
MPL	73 Outperform	$13.83B	28.23	20.97%	3.43%	5.21%	-21.15%
HLI	73 Outperform	AU$1.41B	6.45	20.91%	6.19%	-6.90%	-5.67%
IAG	68 Neutral	$20.13B	15.93	18.88%	2.82%	34.77%	―
Sector *	67 Neutral	¥722.67B	10.84	7.55%	3.29%	7.81%	14.63%

QBE Insurance Group Limited Corporate Events

QBE Insurance Issues Unquoted Employee Conditional Rights

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

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

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-

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

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

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

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

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

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

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

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

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

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.

QBE Insurance Group Reports Strong 2024 Performance Amid Industry Challenges

QBE Insurance Group Limited reported a strong performance in 2024, highlighting the successful execution of its strategic priorities and improved service delivery to customers and shareholders. The company emphasized the essential role of insurance in economic activities and community support, especially amidst rising weather-related and geopolitical challenges. QBE acknowledged the rising cost of premiums and stressed the importance of reducing underlying risks to improve affordability, while committing to a sustainable and adaptable insurance sector for the future.

QBE Insurance Reports Strong Q1 2025 Premium Growth

QBE Insurance Group Limited reported a robust 8% growth in gross written premiums for the first quarter of 2025, driven by strong performance in international and North American markets. Despite challenges from non-core line run-offs in North America, the company maintained its growth trajectory, excluding these factors. The company anticipates moderate growth in its Crop segment for the fiscal year 2025, with stable net insurance revenue due to increased cessions to the federal risk pool. Overall, QBE’s underwriting performance remains resilient amid challenging market conditions, reinforcing its positive outlook for the year.