The share price of ASX insurance stocks QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN) haven't moved much during Wednesday's trading.
QBE is the largest ASX insurance stock and has seen its share price drop slightly by 0.25% to $19.83. Its $19 billion rival Suncorp has gained 0.2% in value at $17.34.
Both insurance companies have had a past 6 months to forget, with QBE tumbling almost 14%, and Suncorp 16%.
Let's have a closer look at what 2026 might bring for the two heavyweight insurance stocks.
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QBE
ASX insurance stock QBE is a large, globally diversified insurer. The company spreads catastrophe and economic risk across many markets.
The weakness of the past 6 months followed a strong start to 2025. Investor confidence was shaken when QBE announced that premium-rate increases had slowed significantly across several business lines, particularly in commercial property insurance.
That said, the underlying business remains sound. QBE delivered solid half-year results, supported by improved underwriting margins, stronger investment income, and a more disciplined portfolio.
The company also launched a sizeable on-market share buyback, signalling confidence in its balance sheet and capital position. However, a softer third-quarter update for FY2025 overshadowed these positives, shifting market focus toward slowing growth.
Despite these headwinds, broker sentiment remains supportive. Most analysts rate QBE as a buy or strong buy, with an average 12-month price target of $22.30, implying upside of around 13% from current levels.
The maximum price target is set at $25.42, a potential gain of 28%.
However, Bell Potter has put the ASX insurance stock on the sell list. It is feeling cautious about the company's outlook, given how premium growth is moderating and claim costs are rising.
The broker estimates that QBE's shares will provide investors in FY 2026 with dividend yields of 4.7%.
Suncorp
Suncorp is more Australia-focused than QBE. It relies heavily on domestic personal and small commercial insurance brands. The heavier domestic exposure makes the ASX insurance stock more sensitive to Australian natural disaster losses and regulatory and premium pressures than QBE.
The insurer experienced five difficult months to November 2025, marked by elevated natural hazard losses. December, on the other hand, proved to be a comparatively quieter month for weather-related events.
Even so, total costs still exceeded Suncorp's $885 million first-half allowance. Broker UBS estimates a catastrophe budget overrun of $420 million, reduced from its earlier estimate of $580 million.
UBS has assigned a buy rating to Suncorp shares, with a price target of $20.85 on the ASX-listed insurance stock. This points to a 20% upside over the next 12 months.
In terms of the dividend, the projection on CMC Markets suggests the business could deliver an annual dividend per share of 78.5 cents. At the current Suncorp share price, it could pay a grossed-up dividend yield of 6.3%, including franking credits.
