Why Investors Shouldn't Be Surprised By QBE Insurance Group Limited's (ASX:QBE) Low P/E
Jan 24
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Australian (ASX) Insurance Industry Analysis
UpdatedFeb 01, 2025
DataAggregated Company Financials
Companies10
- 7D3.8%
- 3M17.8%
- 1Y27.7%
- YTD6.8%
Over the last 7 days, the Insurance industry has risen 1.8%, driven by gains from QBE Insurance Group of 3.9%. In the same time, NobleOak Life was down 5.1%. This takes the industry's 12 month performance to a gain of 27%. Looking forward, earnings are forecast to grow by 7.3% annually.
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, 01 Feb 2025 | AU$105.5b | AU$80.4b | AU$5.2b | 27.7x | 20.4x | 1.3x |
| Mon, 30 Dec 2024 | AU$99.4b | AU$80.4b | AU$5.2b | 26.6x | 19.3x | 1.2x |
| Wed, 27 Nov 2024 | AU$97.0b | AU$78.9b | AU$5.0b | 26.2x | 19.2x | 1.2x |
| Fri, 25 Oct 2024 | AU$91.1b | AU$78.0b | AU$5.0b | 25.4x | 18.3x | 1.2x |
| Sun, 22 Sep 2024 | AU$92.8b | AU$77.6b | AU$5.0b | 26.6x | 18.6x | 1.2x |
| Tue, 20 Aug 2024 | AU$93.2b | AU$71.0b | AU$5.6b | 23.6x | 16.8x | 1.3x |
| Thu, 18 Jul 2024 | AU$91.7b | AU$76.8b | AU$5.2b | 22.3x | 17.7x | 1.2x |
| Sat, 15 Jun 2024 | AU$90.3b | AU$77.4b | AU$5.2b | 20.7x | 17.3x | 1.2x |
| Mon, 13 May 2024 | AU$88.6b | AU$77.4b | AU$5.2b | 19.7x | 17x | 1.1x |
| Wed, 10 Apr 2024 | AU$89.6b | AU$83.3b | AU$5.2b | 20.6x | 17.2x | 1.1x |
| Fri, 08 Mar 2024 | AU$86.3b | AU$83.4b | AU$5.2b | 19.8x | 16.5x | 1x |
| Sun, 04 Feb 2024 | AU$83.8b | AU$64.7b | AU$4.7b | 20.2x | 17.9x | 1.3x |
| Tue, 02 Jan 2024 | AU$78.6b | AU$63.7b | AU$4.6b | 18.6x | 17.1x | 1.2x |
| Thu, 30 Nov 2023 | AU$78.5b | AU$64.3b | AU$4.7b | 18.7x | 16.9x | 1.2x |
| Sat, 28 Oct 2023 | AU$76.9b | AU$65.3b | AU$4.7b | 18.6x | 16.3x | 1.2x |
| Mon, 25 Sep 2023 | AU$80.1b | AU$65.0b | AU$4.7b | 19x | 17x | 1.2x |
| Wed, 23 Aug 2023 | AU$77.1b | AU$63.7b | AU$4.5b | 30.3x | 17.2x | 1.2x |
| Fri, 21 Jul 2023 | AU$79.7b | AU$56.1b | AU$3.4b | 30x | 23.8x | 1.4x |
| Sun, 18 Jun 2023 | AU$78.4b | AU$56.0b | AU$3.3b | 31.5x | 23.4x | 1.4x |
| Tue, 16 May 2023 | AU$74.3b | AU$56.6b | AU$3.4b | 29.3x | 22x | 1.3x |
| Thu, 13 Apr 2023 | AU$74.3b | AU$56.5b | AU$3.4b | 35x | 22.1x | 1.3x |
| Sat, 11 Mar 2023 | AU$73.4b | AU$56.8b | AU$3.4b | 36.4x | 21.7x | 1.3x |
| Mon, 06 Feb 2023 | AU$68.2b | AU$52.8b | AU$2.4b | 33.1x | 28.1x | 1.3x |
| Wed, 04 Jan 2023 | AU$68.5b | AU$53.2b | AU$2.4b | 32.4x | 28x | 1.3x |
| Fri, 02 Dec 2022 | AU$67.2b | AU$53.4b | AU$2.4b | 31.7x | 27.4x | 1.3x |
| Sun, 30 Oct 2022 | AU$64.3b | AU$54.4b | AU$2.5b | 29.8x | 25.9x | 1.2x |
| Tue, 27 Sep 2022 | AU$62.0b | AU$53.9b | AU$2.5b | 28.7x | 25.1x | 1.1x |
| Thu, 25 Aug 2022 | AU$65.6b | AU$53.0b | AU$2.4b | 30.7x | 27x | 1.2x |
| Sat, 23 Jul 2022 | AU$63.2b | AU$53.3b | AU$3.1b | 25.8x | 20.6x | 1.2x |
| Mon, 20 Jun 2022 | AU$59.8b | AU$53.2b | AU$3.1b | 22.9x | 19.5x | 1.1x |
| Wed, 18 May 2022 | AU$66.3b | AU$53.2b | AU$3.1b | 24x | 21.6x | 1.2x |
| Fri, 15 Apr 2022 | AU$62.4b | AU$51.9b | AU$3.0b | 24.4x | 20.8x | 1.2x |
| Sun, 13 Mar 2022 | AU$58.4b | AU$52.2b | AU$3.0b | 22.3x | 19.3x | 1.1x |
| Tue, 08 Feb 2022 | AU$63.6b | AU$52.2b | AU$896.7m | 29.2x | 71x | 1.2x |
Price to Earnings Ratio
71x
Current Industry PE
- Investors are relatively neutral on the Australian Insurance industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 21.2x.
- 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 79% per year over the last three years.
- Revenues for these companies have grown 15% 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 | 1.42% | |
| Financials | 1.48% | |
| Insurance | 3.81% | |
| Life and Health Insurance | 4.90% | |
| Property and Casualty Insurance | 3.71% | |
| Insurance Brokers | 2.99% | |
| General Insurance | 0% | 0 |
| Reinsurance | 0% | 0 |
Industry PE
- Investors are most optimistic about the Life and Health Insurance industry which is trading above its 3-year average PE ratio of 27.6x.
- Analysts are expecting annual earnings growth of 26.1%, 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 27.8x.
Forecasted Growth
- Analysts are most optimistic on the Life and Health Insurance industry, expecting annual earnings growth of 26% 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 3.2% 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$20.94 | 3.9% +AU$1.2b | 29.4% | PE11.5x | |
| IAG Insurance Australia Group | AU$9.20 | 4.3% +AU$898.0m | 50.8% | PE24.2x | |
| SUN Suncorp Group | AU$20.81 | 3.0% +AU$763.4m | 46.0% | PE28.2x | |
| MPL Medibank Private | AU$4.00 | 4.7% +AU$495.7m | 3.9% | PE2824.6x | |
| SDF Steadfast Group | AU$5.84 | 2.6% +AU$165.5m | -1.5% | PE28.3x |
