With EPS Growth And More, QBE Insurance Group (ASX:QBE) Makes An Interesting Case
Nov 24
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Australian (ASX) Insurance Industry Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies10
- 7D-0.3%
- 3M6.7%
- 1Y25.6%
- YTD26.0%
In the last week, Insurance has been flat. The past year has been better, since the industry has gained 26% in that time. As for the next few years, earnings are expected to grow by 7.9% per annum.
Industry Valuation and Performance
Has the Australian Insurance Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | AU$96.7b | AU$80.3b | AU$5.2b | 25.7x | 18.7x | 1.2x |
| Mon, 18 Nov 2024 | AU$97.0b | AU$79.1b | AU$5.1b | 26.4x | 19.2x | 1.2x |
| Wed, 16 Oct 2024 | AU$90.9b | AU$77.7b | AU$5.0b | 25.8x | 18.3x | 1.2x |
| Fri, 13 Sep 2024 | AU$92.8b | AU$78.2b | AU$5.0b | 25.4x | 18.5x | 1.2x |
| Sun, 11 Aug 2024 | AU$90.4b | AU$78.5b | AU$5.8b | 22.5x | 15.5x | 1.2x |
| Tue, 09 Jul 2024 | AU$89.5b | AU$76.8b | AU$5.2b | 21.8x | 17.3x | 1.2x |
| Thu, 06 Jun 2024 | AU$89.5b | AU$77.2b | AU$5.2b | 20.1x | 17.2x | 1.2x |
| Sat, 04 May 2024 | AU$87.1b | AU$77.5b | AU$5.2b | 20.3x | 16.7x | 1.1x |
| Mon, 01 Apr 2024 | AU$90.0b | AU$83.9b | AU$5.2b | 20.3x | 17.1x | 1.1x |
| Wed, 28 Feb 2024 | AU$85.7b | AU$83.5b | AU$5.2b | 17x | 16.4x | 1x |
| Fri, 26 Jan 2024 | AU$82.6b | AU$64.4b | AU$4.7b | 19.8x | 17.7x | 1.3x |
| Sun, 24 Dec 2023 | AU$78.1b | AU$63.7b | AU$4.6b | 18.5x | 16.9x | 1.2x |
| Tue, 21 Nov 2023 | AU$78.1b | AU$64.6b | AU$4.7b | 18.8x | 16.7x | 1.2x |
| Thu, 19 Oct 2023 | AU$81.3b | AU$65.2b | AU$4.7b | 19.1x | 17.2x | 1.2x |
| Sat, 16 Sep 2023 | AU$79.2b | AU$65.0b | AU$4.7b | 19.1x | 16.9x | 1.2x |
| Mon, 14 Aug 2023 | AU$79.3b | AU$62.3b | AU$4.2b | 31.7x | 18.7x | 1.3x |
| Wed, 12 Jul 2023 | AU$79.2b | AU$56.6b | AU$3.4b | 31x | 23.4x | 1.4x |
| Fri, 09 Jun 2023 | AU$75.9b | AU$56.6b | AU$3.4b | 30.2x | 22.5x | 1.3x |
| Sun, 07 May 2023 | AU$75.4b | AU$56.4b | AU$3.4b | 29.4x | 22.4x | 1.3x |
| Tue, 04 Apr 2023 | AU$71.8b | AU$56.4b | AU$3.4b | 35x | 21.4x | 1.3x |
| Thu, 02 Mar 2023 | AU$73.9b | AU$56.2b | AU$3.4b | 40x | 22x | 1.3x |
| Sat, 28 Jan 2023 | AU$70.8b | AU$52.4b | AU$2.4b | 35.7x | 29.3x | 1.4x |
| Mon, 26 Dec 2022 | AU$68.1b | AU$53.4b | AU$2.4b | 33.2x | 27.8x | 1.3x |
| Wed, 23 Nov 2022 | AU$66.9b | AU$53.8b | AU$2.5b | 32.3x | 27.2x | 1.2x |
| Fri, 21 Oct 2022 | AU$65.4b | AU$54.7b | AU$2.5b | 28.5x | 26.3x | 1.2x |
| Sun, 18 Sep 2022 | AU$64.3b | AU$53.5b | AU$2.5b | 30x | 26.2x | 1.2x |
| Tue, 16 Aug 2022 | AU$64.5b | AU$52.5b | AU$2.5b | 30.6x | 25.6x | 1.2x |
| Thu, 14 Jul 2022 | AU$63.0b | AU$53.7b | AU$3.1b | 24.9x | 20.4x | 1.2x |
| Sat, 11 Jun 2022 | AU$61.8b | AU$52.7b | AU$3.0b | 24.2x | 20.3x | 1.2x |
| Mon, 09 May 2022 | AU$65.2b | AU$52.7b | AU$3.0b | 24.4x | 21.4x | 1.2x |
| Wed, 06 Apr 2022 | AU$61.9b | AU$51.6b | AU$3.0b | 24.5x | 20.7x | 1.2x |
| Fri, 04 Mar 2022 | AU$60.2b | AU$52.3b | AU$3.0b | 23.3x | 19.9x | 1.2x |
| Sun, 30 Jan 2022 | AU$61.0b | AU$52.2b | AU$895.3m | 28.3x | 68.2x | 1.2x |
| Tue, 28 Dec 2021 | AU$62.4b | AU$51.8b | AU$909.5m | 30.7x | 68.6x | 1.2x |
Price to Earnings Ratio
68.6x
Current Industry PE
- Investors are pessimistic on the Australian Insurance industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 18.7x which is lower than its 3-year average PE of 23.1x.
- The industry is trading close to its 3-year average PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Insurance industry have grown 78% per year over the last three years.
- Revenues for these companies have grown 16% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Financials industry?
| AU Market | -2.74% | |
| Financials | -3.28% | |
| Insurance | -0.29% | |
| Insurance Brokers | 1.08% | |
| General Insurance | 0% | |
| Reinsurance | 0% | |
| Life and Health Insurance | -0.38% | |
| Property and Casualty Insurance | -0.46% | |
Industry PE
- Investors are most optimistic about the Life and Health Insurance industry which is trading above its 3-year average PE ratio of 25.8x.
- Analysts are expecting annual earnings growth of 24.8%, which is higher than its past year's earnings decline of 0.5% per year.
- Investors are most pessimistic about the Property and Casualty Insurance industry, which is trading below its 3-year average of 63.8x.
Forecasted Growth
- Analysts are most optimistic on the Life and Health Insurance industry, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings decline of 0.5% per year.
- In contrast, the Property and Casualty Insurance industry is expected to see its earnings grow by 4.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| QBE QBE Insurance Group | AU$19.13 | 1.2% +AU$346.2m | 30.6% | PE10.5x | |
| SDF Steadfast Group | AU$5.83 | 1.0% +AU$66.2m | 1.4% | PE28.2x | |
| MPL Medibank Private | AU$3.76 | 0.5% +AU$55.1m | 6.2% | PE2655.1x | |
| AUB AUB Group | AU$30.74 | 1.2% +AU$40.8m | 13.5% | PE26.1x | |
| NOL NobleOak Life | AU$1.65 | 4.1% +AU$5.6m | -0.9% | PE15.3x |