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QBE Insurance Group Ltd QBE

Morningstar Rating
A$16.96 −0.35 (2.02%)
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Company Report

QBE Insurance: Narrower Focus in North America With Middle-Market Growth Too Challenging

No-moat QBE Insurance is reducing its exposure in North America, exiting the middle-market segment. The middle-market segment is insurance sold via brokers for midsize businesses, with products spanning property, auto, and general liability cover such as personal injury. The business closure reduces QBE Insurance’s gross written premium, or GWP, by around USD 500 million, representing 7% of 2023 North America premiums and 2% of group premiums. We expect the impact on profit to be minimal, given the reason for exiting is challenged performance for several years—the segment was under strategic review for sale or closure 10 years ago. Management expects a limited impact on the group's combined operating ratio in 2024, but we suspect a modest positive impact in 2025 once the business has been more substantially wound down.

Price vs Fair Value

QBE is trading at a 534% premium.
Price
A$16.96
Fair Value
A$97.00
Uncertainty
High
1-Star Price
A$35.70
5-Star Price
A$3.50
Economic Moat
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Capital Allocation
Kwhqrxl

Bulls Say, Bears Say

Bulls

Rising insurance premiums, underwriting discipline, productivity initiatives, and a focus on profitable growth should drive excess returns.

Bears

Rising competition erodes market share from incumbents, such as QBE, regardless of the impact on short-term profits and returns.

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News

Trading Information

Previous Close Price
A$17.31
Day Range
A$16.9117.38
52-Week Range
A$13.8018.67
Bid/Ask
A$16.92 / A$17.17
Market Cap
A$25.48 Bil
Volume/Avg
2.3 Mil / 3.3 Mil

Key Statistics

Price/Earnings (Normalized)
12.08
Price/Sales
0.75
Dividend Yield (Trailing)
3.66%
Dividend Yield (Forward)
3.66%
Total Yield
3.66%

Company Profile

QBE Insurance is an international property and casualty insurance company. It writes around 25% of its annual gross written premiums in its home region of Australia and New Zealand. Other key regions include North America and Europe. QBE Insurance offers a number of personal, commercial, and specialty lines, including property, auto insurance, agriculture, public/product liability, professional indemnity, workers compensation, marine, energy and aviation, and accident and health.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Large Value
Total Number of Employees
11,651

Competitors

Valuation

Metric
QBE
SUN
IAG
Price/Earnings (Normalized)
12.0818.0326.99
Price/Book Value
1.731.572.56
Price/Sales
0.751.601.04
Price/Cash Flow
11.1618.37
Price/Earnings
QBE
SUN
IAG

Financial Strength

Metric
QBE
SUN
IAG
Quick Ratio
Current Ratio
Interest Coverage
8.920.086.49
Quick Ratio
No chart available

Profitability

Metric
QBE
SUN
IAG
Return on Assets (Normalized)
3.09%1.07%2.91%
Return on Equity (Normalized)
14.62%8.88%13.91%
Return on Invested Capital (Normalized)
12.33%0.17%7.65%
Return on Assets
QBE
SUN
IAG
See how this stock stacks up to its competitors with Morningstar Investor

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