QBE Insurance Group Ltd (ASX: QBE) shares are having another strong session on Thursday.
At the time of writing, the QBE share price is up 4.61% to $24.50.
Earlier today, the ASX 200 financial share climbed as high as $24.57. That's its highest level in more than a decade, last seen during the post-GFC recovery period in December 2009.
The move adds to what has already been a solid year for QBE shareholders. The stock is now up more than 20% in 2026.
So, what is driving the rally, and should investors still be interested after such a big run?
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Why QBE shares are rising
QBE has been getting support from a stronger insurance earnings backdrop and higher premiums in its latest full-year numbers.
The company reported statutory net profit after tax (NPAT) of US$2.16 billion for FY 2025, up from US$1.78 billion a year earlier. Adjusted NPAT also rose to US$2.13 billion, while adjusted return on equity (ROE) came in at 19.8%.
Its combined operating ratio improved to 91.9%, from 93.1% in the prior year, pointing to a better underwriting result and tighter control of claims and costs.
QBE also lifted its full-year dividend to $1.09 per share, which was 25% higher than the prior year.
Based on the current share price, the stock is still offering a dividend yield of about 4.5%.
QBE holds its guidance
The more recent first-quarter update gave investors another reason to stay positive.
QBE said gross written premium growth was 11% compared with the prior corresponding period, or 7% on a constant currency basis.
The company also maintained its FY 2026 outlook, pointing to mid-single-digit gross written premium growth and a group combined operating ratio of around 92.5%.
That suggests management still expects the business to remain profitable. This is despite premium growth potentially slowing from the very strong figures seen across the industry in recent years.
Is it too late to buy?
QBE is in much better shape than it was a few years ago. Earnings have improved, the dividend has been lifted, and the first-quarter update showed the business has started 2026 well.
But investors are no longer buying the stock at a cheap-looking price. After a move to a decade-high, much of the good news is already reflected in the share price.
There are also risks to watch. UBS has previously raised concerns about a softer insurance pricing backdrop heading into 2027, particularly if premium rate growth loses pace more quickly than expected.
After today's push to decade highs, I'd be inclined to wait for a better entry point rather than chase the rally.
