Did Suncorp or QBE insurance shares perform better in the last year?

The S&P/ASX 200 Financials Index (ASX: XFJ) rose by 24.45% in FY25 to lead all sectors. Two of Australia's largest insurance providers, Suncorp Group Ltd (ASX: SUN) and QBE Insurance Group Ltd (ASX: QBE) contributed to this rise. 

Both firmly sit within the top 10 largest companies by market capitalisation within the financials sector. 

Let's look at which has been a better investment over the last year. 

QBE Insurance Group Ltd (ASX: QBE)

QBE is Australia's second-largest international insurer, providing a broad range of insurance products across personal, business, corporate, and institutional markets.

At the time of writing, QBE shares are trading at $22.96 each, compared to roughly $17.00 a year ago. 

This represents an impressive 34.11% rise. 

The insurer has reported consistent premium growth, with gross written premiums rising consistently. 

Its FY24 results showed a 23% rise in net profit after tax (NPAT) and a 3% rise in gross written premium growth. 

In its 1Q25 Performance Update, the insurer said gross written premium growth was up 7% compared to the prior corresponding period. 

These strong financial results sparked investor confidence, and likely contributed to its share price rise which included an 8.9% rise the day of its FY24 results. 

Investors who bought in a year ago would be sitting pretty today. 

A $10,000 investment in QBE shares a year ago would today be worth $13,411 today, before taking into consideration the healthy yield of 3.85%. 

Suncorp Group Ltd (ASX: SUN)

A name many Queenslander's would be familiar with, Suncorp's insurance business trades under a number of brand names including AAMI, APIA, and GIO.

Its share price grew steadily for much of FY25 before falling 20% in February after being caught in some political crossfire.

Since then its share price has steadily recovered. 

All in all, for the last 12 months, Suncorp shares grew 3.78%. 

Do these insurance shares have upside?

Based on analysis from brokers, it seems both insurance shares are hovering close to fair value. 

Broker Bell Potter gives the slight nod to QBE shares, with an "overweight" recommendation and target price of $24.59. 

This indicates a 7.10% upside. 

Broker Macquarie set the target price for QBE at $23.00, suggesting its trading close to fair value. 

Back in late June, Jed Richards of Shaw and Partners said taking profits on QBE shares may be "prudent" at this point.