ASX:QBE

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QBE Insurance Group

Executive Summary

QBE Insurance Group Limited underwrites general insurance and reinsurance risks for personal, business, corporate, and institutional customers.


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has QBE Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QBE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

QBE

1.3%

AU Insurance

2.7%

AU Market


1 Year Return

-23.4%

QBE

-20.1%

AU Insurance

-6.6%

AU Market

Return vs Industry: QBE underperformed the Australian Insurance industry which returned -19.2% over the past year.

Return vs Market: QBE underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

QBEIndustryMarket
7 Day-0.6%1.3%2.7%
30 Day13.9%10.4%12.2%
90 Day-27.4%-12.8%-2.8%
1 Year-20.2%-23.4%-15.9%-20.1%-2.7%-6.6%
3 Year-22.3%-30.4%-4.4%-17.4%18.2%2.6%
5 Year-23.2%-37.0%13.1%-11.7%33.2%4.4%

Price Volatility Vs. Market

How volatile is QBE Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is QBE Insurance Group undervalued compared to its fair value and its price relative to the market?

14.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: QBE (A$8.83) is trading above our estimate of fair value (A$4.12)

Significantly Below Fair Value: QBE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: QBE is good value based on its PE Ratio (14.1x) compared to the Insurance industry average (17.7x).

PE vs Market: QBE is good value based on its PE Ratio (14.1x) compared to the Australian market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: QBE is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: QBE is good value based on its PB Ratio (1x) compared to the AU Insurance industry average (2.5x).


Next Steps

Future Growth

How is QBE Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QBE's forecast earnings growth (26.8% per year) is above the savings rate (2.3%).

Earnings vs Market: QBE's earnings (26.8% per year) are forecast to grow faster than the Australian market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: QBE's revenue (0.9% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: QBE's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QBE's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has QBE Insurance Group performed over the past 5 years?

-21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QBE has high quality earnings.

Growing Profit Margin: QBE's current net profit margins (4.5%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: QBE's earnings have declined by -21.9% per year over the past 5 years.

Accelerating Growth: QBE's earnings growth over the past year (0.7%) exceeds its 5-year average (-21.9% per year).

Earnings vs Industry: QBE earnings growth over the past year (0.7%) underperformed the Insurance industry 8.2%.


Return on Equity

High ROE: QBE's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is QBE Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: QBE's short term assets ($8.4B) do not cover its short term liabilities ($15.4B).

Long Term Liabilities: QBE's short term assets ($8.4B) do not cover its long term liabilities ($16.5B).


Debt to Equity History and Analysis

Debt Level: QBE's debt to equity ratio (38%) is considered satisfactory.

Reducing Debt: QBE's debt to equity ratio has increased from 32.3% to 38% over the past 5 years.

Debt Coverage: QBE's debt is well covered by operating cash flow (57.5%).

Interest Coverage: QBE's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is QBE Insurance Group's current dividend yield, its reliability and sustainability?

4.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QBE's dividend (4.88%) is higher than the bottom 25% of dividend payers in the Australian market (2.52%).

High Dividend: QBE's dividend (4.88%) is low compared to the top 25% of dividend payers in the Australian market (6.55%).


Stability and Growth of Payments

Stable Dividend: QBE's dividend payments have been volatile in the past 10 years.

Growing Dividend: QBE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.3%), QBE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QBE's dividends in 3 years are forecast to be covered by earnings (63.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Pat Regan (53yo)

2.42yrs

Tenure

US$4,428,000

Compensation

Mr. Patrick C. Regan, also known as Pat, BSc, FCA, has been Group Chief Executive Officer of QBE Insurance Group Limited since January 1, 2018. Mr. Regan served Chief Executive Officer of Australian & New  ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD4.43M) is above average for companies of similar size in the Australian market ($USD2.98M).

Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Regan
Group CEO & Executive Director2.42yrsUS$4.43m0.072% $9.5m
Inder Singh
Group Chief Financial Officer2.17yrsUS$1.82m0.0022% $282.7k
Jason Brown
Group Chief Underwriting Officer1.42yrsUS$1.75m0.011% $1.5m
Peter Grewal
Group Chief Risk Officer1.92yrsUS$1.61mno data
Todd Jones
Chief Executive Officer of North America0.67yrUS$3.05mno data
Richard Pryce
Chief Executive Officer of International6.67yrsUS$3.58m0.014% $1.8m
Vivek Bhatia
Chief Executive Officer of Australia Pacific2.33yrsUS$2.30m0.0030% $394.5k
Matt Mansour
Global Chief Information Officer2.17yrsno datano data
A. R. Jackson
Group Head of Investor Relationsno datano datano data
Carolyn Scobie
Group General Counsel & Company Secretary4.42yrsno datano data

2.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: QBE's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Regan
Group CEO & Executive Director2.42yrsUS$4.43m0.072% $9.5m
Michael Wilkins
Chairman0.25yrUS$252.00k0.0037% $485.2k
John Green
Independent Deputy Chairman5.42yrsUS$309.00kno data
Stephen Fitzgerald
Independent Non-Executive Director5.67yrsUS$288.00k0.0042% $547.0k
Kathryn Lisson
Independent Non-Executive Director3.75yrsUS$254.00k0.0025% $328.7k
Rolf Albert Tolle
Independent Non-Executive Director4.25yrsUS$272.00k0.0040% $529.9k
Brian Pomeroy
Independent Non-Executive Director6yrsUS$257.00k0.0021% $269.6k
Jann Skinner
Independent Non-Executive Director5.67yrsUS$367.00k0.0044% $573.3k

5.5yrs

Average Tenure

64yo

Average Age

Experienced Board: QBE's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: QBE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.5%.


Top Shareholders

Company Information

QBE Insurance Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QBE Insurance Group Limited
  • Ticker: QBE
  • Exchange: ASX
  • Founded: 1886
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: AU$13.149b
  • Shares outstanding: 1.47b
  • Website: https://www.qbe.com

Number of Employees


Location

  • QBE Insurance Group Limited
  • 8 Chifley Square
  • Level 27
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QBEI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
QBEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
QBEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
QBECHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
QBIE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

QBE Insurance Group Limited underwrites general insurance and reinsurance risks for personal, business, corporate, and institutional customers. The company offers range of commercial, personal, and specialty products, such as commercial and domestic property, motor and motor casualty, agriculture, public/product liability, professional indemnity, workers' compensation, marine, energy and aviation, accident and health, financial and credit, and other insurances, as well as risk management solutions. It also manages Lloyd’s syndicates, as well as offers investment management services. The company serves in North America, Australia Pacific, and internationally. QBE Insurance Group Limited was founded in 1886 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 10:35
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.