Latest news with #QBEIF
Yahoo
08-08-2025
- Business
- Yahoo
QBE Insurance Group Ltd (QBEIF) Half Year 2025 Earnings Call Highlights: Strong Start with ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points QBE Insurance Group Ltd (QBEIF) reported a strong start to the year with a 6% growth in Gross Written Premium (GWP), driven by underlying X-rate growth of 7%. The company achieved a combined ratio of 92.8%, aligning with their full-year outlook, indicating predictable and resilient performance. Return on equity was impressive at 19.2%, with the company on track to deliver high teen returns for the year. QBE Insurance Group Ltd (QBEIF) received credit rating upgrades from S&P and Fitch, both moving to AA minus, reflecting improved business quality and resilience. An interim dividend of $0.31 was announced, maintaining a strong capital position with a PCA multiple of 1.85 times. Negative Points Premium rate increases have moderated, particularly in commercial property and Lloyd's portfolios, which could impact future profitability. The company faces challenges with large loss activity, particularly in aviation and oil refinery sectors, which could affect underwriting results. There is a noted drag from exited lines, with a projected impact of around $250 million for the year. The expense ratio remains steady at around 12%, with significant modernization investments expected to continue, potentially delaying cost reductions. Inflation concerns persist, with rate increases not fully covering inflation in some segments, posing a risk to profitability. Q & A Highlights Warning! GuruFocus has detected 2 Warning Sign with AMPX. Q: Can you discuss the GWP growth in segments achieving better than 92.5% group core relative to those that aren't, and how does this align with your outlook on combined ratios and premium rates? A: Andrew Houghton, CEO: We don't have a specific breakdown between segments above and below 92.5%. However, segments like Accident and Health (A&H), which grew by more than 10%, contribute positively to ROE despite being above 92.5%. We focus on technical pricing, which remains strong across portfolios, allowing us to grow even in areas with rate decreases, such as property. Inflation remains a key factor, and we aim to maintain pricing discipline to manage claims inflation effectively. Q: Given the favorable catastrophe outcomes despite a tough global half, is your catastrophe budget too conservative, and could it impact growth opportunities? A: Andrew Houghton, CEO: We prefer a conservative catastrophe budget set at the 80th percentile, meaning we should be under budget four out of five years if accurate. This approach ensures pricing discipline and market stability. While we continuously assess competitiveness, maintaining a conservative stance helps manage market dynamics and pricing discipline. Q: How far are you from rate adequacy deteriorating to the point of curtailing growth, given the current rate environment? A: Andrew Houghton, CEO: It's a broad question, but most lines are above 100% rate adequacy. Some lines, like D&O, are below, but many, like crop and A&H, are not cyclical and adjust for inflation annually. Property rates are falling but remain above 100%. We focus on portfolio balance, ensuring growth in lines that maintain rate adequacy. Q: How do you view your scale in the US, and how quickly can adjacent strategies like healthcare and construction grow? A: Andrew Houghton, CEO: We see significant growth potential in the US, particularly in A&H and financial lines. Adjacent strategies like healthcare and construction are nascent but can grow significantly. Our focus is on relevance and quality, ensuring we have strong underwriting and claims services to support growth. Q: Can you elaborate on the impact of large losses and how they affect your combined ratio and risk management strategy? A: Enda Singh, CFO: Large losses are part of the business, and we have allowances for them. We review each loss to ensure underwriting standards are met. While large losses can cause volatility, they are managed across a broad portfolio. We remain confident in our ability to deliver on our full-year outlook despite these challenges. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Insider
02-06-2025
- Business
- Business Insider
QBE Insurance Group Limited (QBEIF) Gets a Buy from Morgans
In a report released today, Richard Coles from Morgans maintained a Buy rating on QBE Insurance Group Limited (QBEIF – Research Report), with a price target of A$26.76. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Coles is a 5-star analyst with an average return of 11.2% and a 57.51% success rate. Coles covers the Financial sector, focusing on stocks such as QBE Insurance Group Limited, COG Financial Services Limited, and Challenger . Currently, the analyst consensus on QBE Insurance Group Limited is a Strong Buy with an average price target of $15.42. Based on QBE Insurance Group Limited's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $11.85 billion and a net profit of $977 million. In comparison, last year the company earned a revenue of $11.43 billion and had a net profit of $955 million Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QBEIF in relation to earlier this year.
Business Insider
13-05-2025
- Business
- Business Insider
Morgans Reaffirms Their Buy Rating on QBE Insurance Group Limited (QBEIF)
Morgans analyst Richard Coles maintained a Buy rating on QBE Insurance Group Limited (QBEIF – Research Report) today and set a price target of A$24.07. The company's shares closed last Wednesday at $13.50. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Coles is a 4-star analyst with an average return of 10.2% and a 55.03% success rate. Coles covers the Financial sector, focusing on stocks such as Challenger , QBE Insurance Group Limited, and Computershare Limited. The word on The Street in general, suggests a Strong Buy analyst consensus rating for QBE Insurance Group Limited with a $15.32 average price target, implying a 13.48% upside from current levels. In a report released today, Morgan Stanley also maintained a Buy rating on the stock with a A$24.60 price target. The company has a one-year high of $15.10 and a one-year low of $9.95. Currently, QBE Insurance Group Limited has an average volume of 719. Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QBEIF in relation to earlier this year.
Business Insider
12-05-2025
- Business
- Business Insider
UBS Reaffirms Their Buy Rating on QBE Insurance Group Limited (QBEIF)
In a report released today, Kieren Chidgey from UBS maintained a Buy rating on QBE Insurance Group Limited (QBEIF – Research Report), with a price target of A$24.65. The company's shares closed last Wednesday at $13.50. Protect Your Portfolio Against Market Uncertainty Chidgey covers the Financial sector, focusing on stocks such as ASX , Medibank Private, and QBE Insurance Group Limited. According to TipRanks, Chidgey has an average return of -3.8% and a 43.75% success rate on recommended stocks. In addition to UBS, QBE Insurance Group Limited also received a Buy from Morgan Stanley's Andrei Stadnik in a report issued today. However, on the same day, Bell Potter maintained a Hold rating on QBE Insurance Group Limited (Other OTC: QBEIF). Based on QBE Insurance Group Limited's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $11.85 billion and a net profit of $977 million. In comparison, last year the company earned a revenue of $11.43 billion and had a net profit of $955 million Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QBEIF in relation to earlier this year.
Business Insider
12-05-2025
- Business
- Business Insider
Analysts' Opinions Are Mixed on These Financial Stocks: Victory Capital Holdings (VCTR) and QBE Insurance Group Limited (OtherQBEIF)
Analysts have been eager to weigh in on the Financial sector with new ratings on Victory Capital Holdings (VCTR – Research Report) and QBE Insurance Group Limited (QBEIF – Research Report). Protect Your Portfolio Against Market Uncertainty Victory Capital Holdings (VCTR) Barclays analyst Benjamin Budish maintained a Hold rating on Victory Capital Holdings on May 9 and set a price target of $62.00. The company's shares closed last Friday at $59.14. According to Budish is a 5-star analyst with an average return of 15.4% and a 71.0% success rate. Budish covers the Financial sector, focusing on stocks such as Virtus Investment Partners, Intercontinental Exchange, and Apollo Global Management. Currently, the analyst consensus on Victory Capital Holdings is a Moderate Buy with an average price target of $68.86, a 16.2% upside from current levels. In a report issued on April 29, J.P. Morgan also maintained a Hold rating on the stock with a $62.00 price target. QBE Insurance Group Limited (QBEIF) Morgan Stanley analyst Andrei Stadnik maintained a Buy rating on QBE Insurance Group Limited today and set a price target of A$24.60. The company's shares closed last Wednesday at $13.50. According to Stadnik is a 4-star analyst with an average return of 7.1% and a 54.4% success rate. Stadnik covers the Financial sector, focusing on stocks such as Insurance Australia Group Limited, Macquarie Group Limited, and Insignia Financial Ltd. Currently, the analyst consensus on QBE Insurance Group Limited is a Strong Buy with an average price target of $15.12, representing a 12.0% upside. In a report issued on April 30, Goldman Sachs also maintained a Buy rating on the stock with a A$25.00 price target.
