QBE Insurance Group Ltd (ASX: QBE) shares closed on Monday trading for $20.56 apiece.
This sees shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant up 3.9% in 2026, outpacing the 1.8% year to date loss posted by the benchmark index.
Longer-term, QBE shares are down 0.8% over 12 months. Though that's doesn't include the two partly franked dividends totalling $1.048 a share that the insurer paid (or shortly will pay) eligible stockholders over this time. QBE trades on a partly franked trailing dividend yield of 5.1%.
And looking ahead, Baker Young's Toby Grimm believes QBE represents appealing value today (courtesy of The Bull).
Here's why.
Image source: Getty Images
Should you buy QBE shares today?
"QBE offers attractive value at this stage of the cycle," Grimm said.
The first reason he's bullish on QBE shares is the company's expectation beating results in calendar year 2025.
"In February, the global insurer reported better-than-forecast earnings growth of 23% in full year 2025, driven by a solid 7% increase in policy sales and relatively low claims rates," he said.
As for the second reason he has a buy rating on the ASX 200 insurer, Grimm said, "With favourable operating conditions likely to persist into full year 2026, we see compelling financial sector value at around 11.5 times projected earnings and a dividend yield of 5%."
Then there's the diversified exposure that QBE shares offer.
According to Grimm:
Insurance is inherently risky and industry feedback suggests competition is increasing, which may limit further premium increases in coming years. However, QBE offers unparalleled geographical diversification among Australian insurers, which helps reduce earnings volatility.
Grimm concluded, "We're comfortable accumulating the stock at current levels as an attractively valued, well diversified financial exposure."
What's the latest from the ASX 200 insurance stock?
QBE released its full year 2025 results on 20 February.
Atop the 23% year-on-year earnings growth that Grimm mentioned above, QBE achieved a 21% increase in statutory net profit after tax (NPAT) to US$2.16 billion.
That saw management boost the final dividend by 23.8% from the 2024 final payout to 78 cents a share.
"QBE delivered strong performance in 2025, exceeding our financial plan for the year," QBE CEO Andrew Horton said on the day.
Looking ahead, Horton added, "Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns."
As for that increasing competition that Grimm mentioned, Horton said, "While competition has increased in some classes, QBE remains committed to our long-term strategy, underwriting discipline, and sustaining strong performance."
QBE shares closed up 7.1% on the day of the 2025 results release.
