QBE Insurance Group Ltd (ASX: QBE) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant closed yesterday trading for $21.92. In late morning trade on Wednesday, shares are swapping hands for $22.18 apiece, up 1.2%.
For some context, the ASX 200 is up 2.7% at this same time amid renewed hopes of a deescalation in the Iran war.
Taking a step back, QBE has strongly outperformed the benchmark index in 2026.
Since market close on 31 December, QBE shares are up 11.5% compared to the 2.7% year to date gain posted by the ASX 200.
QBE also trades on a partly franked trailing dividend yield of 4.9%.
And looking ahead, Investor Pulse's Mark Elzayed expects more outperformance from the Aussie insurer (courtesy of The Bull).
Here's why.
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Should you buy QBE shares today?
"Elevated premium rates and higher interest yields combine to drive earnings momentum," said Elzayed, citing the first reason he's bullish on the stock.
He noted:
Improvement was clear in its full year 2025 results released in February. Net profit after tax of US$2.157 billion was up from US$1.779 billion in the prior corresponding period. Premium growth remained solid, with gross written premiums increasing 7% to $US23.9 billion, driven by rate increases across North America and international markets.
As for the second reason you might want to buy QBE shares today, Elzayed said, "At the same time, catastrophe costs were well below expectations."
Which leads to the third reason, namely the company's growing passive income appeal.
"This combination of underwriting strength and cost control supported a 25% increase in the full year dividend to $1.09 a share," Elzayed said.
QBE's passive income payouts in 2025 represented a full year dividend payout ratio of 50%.
"Improved quality of earnings and reduced volatility adds to QBE's appeal," Elzayed concluded.
What's the latest from the ASX 200 insurer?
QBE released its full calendar year 2025 results on 20 February.
Atop the strong growth metrics Elzayed mentioned up top, the company also achieved a 17% year-on-year increase in its funds under management to US$35.8 billion.
And the company's total investment income of $1.63 billion equated to a return of 4.9%.
"QBE delivered strong performance in 2025, exceeding our financial plan for the year," QBE CEO Andrew Horton said. "Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns."
QBE shares closed up 7.1% on the day of the results release.
