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QBE Insurance Group Limited (QBEIF)
OTHER OTC:QBEIF
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QBE Insurance Group Limited (QBEIF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.31B
Dividend Yield3.74%
Average Volume (3M)200.00
Price to Earnings (P/E)13.3
Beta (1Y)0.72
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees13,275
SectorFinancial
Sector Strength81
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.63
Shares Outstanding1,510,015,300
10 Day Avg. Volume0
30 Day Avg. Volume200
Financial Highlights & Ratios
PEG Ratio13.17
Price to Book (P/B)1.91
Price to Sales (P/S)0.00
P/FCF Ratio7.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.79Price Target Upside2.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
QBE Insurance Group Limited Business Overview & Revenue Model
Company DescriptionQBE 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/product liability, professional indemnity, workers' compensation, marine, energy and aviation, accident and health, financial and credit, and other insurances, as well as risk management solutions. It also manages Lloyd's syndicates, as well as offers investment management services. The company operates in Australia, Europe, North America, Asia, and the Pacific. QBE Insurance Group Limited was founded in 1886 and is headquartered in Sydney, Australia.
How the Company Makes Money
QBE Insurance Group Limited Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q4-2024)
| % Change Since: 34.21%|
Next Earnings Date:Aug 08, 2025
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
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 22.71B | 21.68B | 19.21B | 13.46B | 13.56B | Gross Profit |
| 22.71B | 21.68B | 19.21B | 13.46B | 13.56B | EBIT |
| 22.71B | 21.68B | -14.79M | -13.52M | -12.25M | EBITDA |
| 2.46B | 186.67M | 153.79M | 146.79M | 190.49M | Net Income Common Stockholders |
| 1.78B | 1.35B | 526.21M | 543.62M | -1.69B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.64B | 1.37B | 569.27M | 593.63M | 587.44M | Total Assets |
| 43.85B | 42.11B | 33.22B | 43.24B | 40.61B | Total Debt |
| 2.90B | 3.09B | 3.07B | 3.61B | 4.25B | Net Debt |
| 1.26B | 1.72B | 2.23B | 2.79B | 3.48B | 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $23.31B | 13.35 | 17.21% | 3.74% | ― | ― | ||
64 Neutral | $12.86B | 9.79 | 7.78% | 16985.65% | 12.28% | -7.82% | |
| €804.89M | 5.81 | 20.91% | 6.66% | ― | ― | ||
| $13.49B | 16.21 | 18.88% | 3.35% | ― | ― | ||
| $8.70B | 16.95 | 20.97% | 5.70% | ― | ― | ||
| €1.85B | 17.37 | 15.78% | 4.65% | ― | ― | ||
| $14.93B | 16.07 | 9.52% | 4.77% | ― | ― |
* Financial Sector Average
Performance Comparison
QBEIF
QBE Insurance Group Limited
15.45
3.70
31.49%
DE:0GI0
Genworth Mortgage Insurance Australia Ltd
2.84
0.74
35.24%
IAUGF
Insurance Australia Group Limited
5.74
1.57
37.65%
MDBPF
Medibank Private
1.99
0.09
4.74%
DE:3GU
NIB Holdings Ltd
3.54
-0.75
-17.48%
SNMYF
Suncorp Group
13.80
3.94
39.96%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.