18/09/2025 09:52

QBE Insurance Group Ltd (QBE) $20.50

QBE has drifted ~15% lower in recent months as investors structure portfolios around a lower interest rate environment.  The stock is trading on a PE of 10.8x relative to peers IAG trading on 18x and Suncorp (SUN) trading on 17x implying a solid relative and absolute valuation in an expensive market, and QBE has been performing strongly as a business.

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07/03/2025 09:25

QBE Insurance Group Ltd (QBE) $20.84

QBE has noticeably performed better than its peers in recent weeks, although cracks have started to appear this week. The insurer's result in late February propelled the stock towards multi-year highs, a very different outcome than with IAG. The numbers were good, coming in better than expectations, NPAT ~$US1.78bn vs $US1.71bn and a dividend of 63c vs 53c consensus.

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14/02/2025 09:43

QBE Insurance Group Ltd (QBE) $19.85

QBE has kept pace with its peers over the last few years, finally shaking off its serial under performer tag. However, speculating about what lies in store following reports by SUN and IAG is guesswork. Again, we are conscious that the stocks are trading on a stretched valuation and will need to deliver when they front investors.

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04/10/2024 09:20

QBE Insurance Group Ltd (QBE) $16.34

QBE has been under pressure in recent months as the prospect of falling interest rates weighs on the stock. Although it's still up 10% year-to-date, it's corrected over 17% from its June high. QBE’s recent 1H24 result was broadly in line with expectations, and we like the current chapter as the insurer gets its house in order.

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06/09/2024 09:15

QBE Insurance Group Ltd (QBE) $16.05

QBE has already corrected ~14% from its July high as it retreats in anticipation of lower US interest rates. QBE earns income from its premiums in US bonds ahead of payouts on the claims. Last month's trading update came in largely as expected, and the stock has not moved since early August. QBE’s 1H24 result was broadly in line with expectations. The key to us is that the insurer is too cheap due to its messy history, trading ~10x FY24F PE, well below its global peers.

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08/08/2024 09:39

QBE Insurance Group Ltd (QBE) $16.37

QBE provided a trading update for the five months to May 24, which identified some of the noisier items; however, the important underlying profitability was not mentioned. QBE is historically very volatile on reporting day, which happens to be tomorrow, with an average earnings surprise of 10%, leading to an average 4.2% move in share price on the day of reporting i.e. not the faint hearted. Margins will be a focus tomorrow and we believe repricing continues to track in excess of loss trends, which drives margin expansion.

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20/06/2024 09:48

QBE Insurance Group Ltd (QBE) $17.59

QBE fell -4.25% on Wednesday after announcing plans to close part of their North American ‘mid-market’ business after failing to sell it. It’s another step in the simplification process for QBE which has been ongoing for several years, essentially unwinding the complexity that built up over decades. QBE has had a stellar run over the last two years as their more targeted strategy and favourable macro conditions supported earnings.

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04/06/2024 09:07

QBE Insurance Group Ltd (QBE) $18.26

QBE rallied +2.6% on Monday, its largest gain in 15 weeks, aided by S&P reaffirming its Long-term credit rating at A-. QBE remains our preferred local insurance play after its excellent March full-year result, but the stock has experienced a decent retracement each year since COVID, apart from 2024, yet that is! The risk/return isn’t exciting just yet, but we do like the insurer into a pullback.

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11/04/2024 09:26

QBE Insurance Group (QBE) $17.55

QBE remains our preferred local insurance play after its March full year result showcased an improved return on equity of over 20% in the second half. Importantly, the stock remains cheap, trading on an estimated PE of 9.8x compared to its global peer average of around 12x plus. We like the direction of the business over recent times, although much of this has clearly been reflected in the share price, with the stock up over 18% year-to-date.

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07/03/2024 09:12

QBE Insurance Group Ltd (QBE) $15.19

In February, Sydney-based insurer QBE's FY23 result demonstrated an improved return on equity (ROE) of over 20% in the second half, leaving the business well-positioned for a solid earnings position over the years ahead. Importantly, in the current environment, their conservative guidance leaves them with the potential to “under promise and over deliver.”

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