By investing your superannuation wisely, you might be able to generate a regular cash flow high enough to live the retirement of your dreams.

The question is: How much do you actually need in your super to be able to get the passive income you want when you transition to your pension phase?

Let's investigate, using an annual $100,000 passive income as an example.

How much do I need in my superannuation to get a passive income of $100,000 every year?

To calculate how much you need in your superannuation, you need to divide your annual passive income by the dividend yield of your overall portfolio.

Obviously, the catch is that the answer varies depending on what your dividend yield is.

It means a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

Say your overall portfolio has a dividend yield of around 3%, you'll need a balance of around $3.3 million to earn $100,000 per year in passive income.

Of course, $3.3 million is a huge figure, and this level of superannuation isn't achievable for everyone.

But the good news is, as your portfolio's dividend yield increases, the superannuation balance required to earn the same passive income decreases. 

So if the yield of your portfolio is around 4%, for example, your balance would need to be closer to $2.5 million to earn the same dividend income.

For a 5% yielding portfolio, you'd need a balance of closer to $2 million to earn the same amount.

Increase that to a 6%, 7%, or 8% dividend yield, and you're looking at closer to $1.6 million, $1.4 million, or $1.25 million, respectively. 

And so on…

You'd still earn $100,000 per year in passive income from each of these portfolio sizes.

What ASX shares can I buy around these dividend yields?

There are a huge range of ASX dividend shares available for your superannuation investment. Here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Northern Star Resources Ltd (ASX: NST), AMP Ltd (ASX: AMP) and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable stocks that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I'd look at Suncorp Group Ltd (ASX: SUN), QBE Insurance Group (ASX: QBE), Rio Tinto Ltd (ASX: RIO) or defensive assets like Telstra Group Ltd (ASX: TLS). These all pay a yield around 3% to 5%. 

For a higher 5% to 6% dividend yield, I'd look at reliable payers like APA Group (ASX: APA) or Origin Energy Ltd (ASX: ORG).

Lendlease Group (ASX: LLC) and Charter Hall Long WALE REIT (ASX: CLW) yield around 7% to 8%.

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH), Centuria Office REIT (ASX: COF), or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield anywhere between 9% and 12%.

The post How much superannuation is needed to target a $100,000 annual passive income? appeared first on The Motley Fool Australia.

And ASX dividend shares are a fantastic way to get you there.

The problem is that it can be difficult to work out exactly which shares to buy and how much to invest to get the passive income you want. 

To help, here's a rundown of how to earn a passive income through ASX dividend shares, using $12,000 per year in passive income as an example.

What portfolio size do I need to get $12,000 per year in passive income from ASX shares?

To calculate the portfolio size you'd need to earn $12,000 per year in passive income, you'd need to divide your annual passive income figure by the dividend yield of your overall portfolio. 

So in this case, for example, $12,000 divided by a dividend yield of 3% is $400,000. This $400,000 figure is the portfolio size you'd need to earn this level of passive income each year.

The tricky part is that the answer varies widely depending on the dividend yield of the ASX shares you'd have in your portfolio. 

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of dividend income. 

How much do I need if my portfolio yields 4% to 8%?

We've already calculated (above) the balance you'd need to earn $12,000 off a 3% yielding portfolio.

To earn the same passive income off a 4% yielding portfolio, you'd need around $300,000.

Then, to earn $12,000 from a 5% yielding portfolio, it would need to be closer to $240,000.

If your portfolio has an overall dividend yield of around 6%, you'd need to invest closer to $200,000 to receive your $12,000 per year in passive income.

Your portfolio would only need to be around $171,500 to earn $12,000 if it had an overall yield of 7%.

Portfolios yielding 8% would need to be around $150,000 to earn the same $12,000 per year.

And so on. As your dividend yield increases, the portfolio size needed to earn the same level of passive income goes down.

These figures are based on cash dividends before any tax or franking credit benefits.

Can't I just invest in the highest-yielding stocks so I don't need to put up as much money up front?

Technically, yes, but it would be a bad investment decision.

Generally, the higher yielding the ASX shares, the more risk they carry.

Instead, you'll want to focus on creating a diversified portfolio. For example, you could split your portfolio so that around 70% is invested in mid-range yielding ASX shares, and the remaining 30% is invested in high-yield stocks or riskier shares.

I'd also look to buy ASX shares across multiple sectors to further diversify my portfolio.

It's important to note that your passive income will likely fluctuate with the company's profits and dividend decisions.

Give me some examples of passive-income earning ASX shares that yield around 3% to 6%

There is a huge range of ASX dividend shares available to buy, but here are a few of my favourites, currently yielding between 3% and 6%.

Investment banking business Macquarie Group Ltd (ASX: MQG) pays a dividend yield of around 2.7%.

Meanwhile, mining giant Rio Tinto Ltd (ASX: RIO) pays its shareholders a yield of around 3.6%, and Brambles Ltd (ASX: BXB) yields a little lower at around 3.4%. 

QBE Insurance Group Ltd (ASX: QBE) pays a yield around 4.4%, at the time of writing. ANZ Group Holdings Ltd (ASX: ANZ) yields close to 4.6%.

Woodside Energy Group Ltd (ASX: WDS) pays around a 5.4% dividend yield to shareholders. Meanwhile, packaging giant Amcor Ltd (ASX: AMC) pays closer to 6%.

… and some high-yield options around 7% or more

For higher yields, real estate investment trusts (REITs) are a great option because they still offer diversity across a range of assets or shares. Charter Hall Long WALE REIT (ASX: CLW) yields around 6.8% at the time of writing. 

Elsewhere, Wam Leaders (ASX: WLE) yields just shy of 7%, and Lendlease Group Ltd (ASX: LLC) yields around 7.8%.

The post These ASX shares could generate $12,000 per year in passive income appeared first on The Motley Fool Australia.

At the time of writing, the shares are up around 0.5% and changing hands at $25.49 a piece. At one point this morning, the shares were as high as $25.52.

The current trading price is the highest level seen since early 2009.

QBE shares had a slow start to the year after dropping to a low of $18.83 in December. The shares have rebounded 35% from that dip and are now up around 29% for the year to date and 12% higher than this time last year.

What has driven the QBE share price rebound in 2026?

QBE shares have rebounded off the back of support from stronger insurance earnings and higher premiums.

In May, the company posted its first-quarter FY26 update. It revealed an 11% year-on-year increase in gross written premium (GWP), or 7% on a constant currency basis. 

The insurer also reported total funds under management of $36.1 billion at the end of the quarter.

QBE maintained its FY26 outlook, pointing to mid-single-digit gross written premium growth and a group combined operating ratio of around 92.5%.

Then, just yesterday, the company announced a senior leadership change. In a statement to the ASX, QBE said Sue Houghton will step down from her role as Chief Executive Officer for Australia Pacific at the end of 2026. The move hasn't seemed to spook investors, and the company's share price has continued rallying higher.

Are the shares a buy, sell, or hold now?

The experts are divided about the outlook for QBE shares over the next 12 months.

Market Index data shows that around half of brokers have a buy rating on the shares. But the $23.35 average target price currently implies a potential 8% downside ahead.

Sentiment is a little more bullish on TradingView data. Out of 11 analysts, six have a buy or strong buy rating on the shares. Another two rate QBE as a hold, and three have a sell stance.

But the average $24.52 target price also implies a 4% downside at the time of writing, likely due to the latest share price rally.

Some are more optimistic, though, and think QBE shares have the potential to climb another 9% to $27.62 a piece.

Investment firm Market Partners is positive on the outlook for QBE shares and sees an emerging turnaround story ahead. It recently noted that QBE has been working hard to simplify its business over the past 5 to 10 years, including a number of acquisitions, and it's now paying off. 

The post QBE shares rebound 35% to fresh multi-year high: Buy, sell or hold? appeared first on The Motley Fool Australia.

At the time of writing, the QBE share price is up 2% to $25.49. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.8% to 8,737 points.

The move adds to a strong recent run for the ASX insurance stock, which is now up around 12% over the past month and 28% since the start of 2026.

Here's what the company told investors.

Senior leader to retire

In a statement to the ASX, QBE said Sue Houghton has advised the company of her intention to retire.

She will step down from her role as Chief Executive Officer for Australia Pacific at the end of 2026.

Houghton has been with QBE for more than 5 years and has spent over 35 years working across financial services.

The Australia Pacific business is one of QBE's 3 main divisions, sitting alongside North America and International.

Group Chief Executive Andrew Horton said Houghton had made a strong contribution to QBE over the past 5 years and helped the Australia Pacific business improve its performance, capability, and customer outcomes.

He said:

On behalf of the Board and Executive Leadership Team, I thank Sue for her contribution and leadership and wish her every success in retirement.

Houghton will remain in the role while QBE begins a search for her replacement.

What is really moving QBE shares

A senior leadership change could have taken some heat out of QBE shares, but investors seem comfortable with the way this one is being handled.

The stock was already moving higher before the update, with investors backing the insurer after a solid start to 2026.

QBE has been getting support from stronger underwriting, premium growth, and steady demand for large defensive financial stocks.

The timing of Houghton's exit is also helping. She is staying in the role until the end of 2026, which gives QBE plenty of time to find a replacement and manage the handover.

Can QBE shares keep climbing?

After a 26% gain in 2026, QBE shares have already had a strong run.

But I wouldn't say the run looks finished just because the stock is near its 52-week high.

The leadership change should be manageable, especially with Houghton staying on until the end of next year.

If QBE keeps underwriting well and claims don't blow out, I think investors will be happy to stick with it.

The post QBE shares surge again as $37 billion insurance giant faces leadership change appeared first on The Motley Fool Australia.

In FY26, ASX 200 shares put in a respectable performance, lifting 2.8% and delivering total returns of 7%.   

Here, we look at three ASX 200 shares that the experts have a bullish view on for FY27.  

Zip Co Ltd (ASX: ZIP)

The Zip share price rose 5.5% to close out FY26 at $3.24 on 30 June.  

Jonathon Higgins from United Capital Partners (UCPS) has a buy rating on this ASX 200 buy now, pay later share for FY27.

Higgins considers Zip's turnaround over the past few years as one of the best he's ever witnessed. 

In a new note, Higgins points out that Zip is on track to report annual cash earnings of more than $260 million just three years after a $50 million cash earnings loss. 

Back then, Zip abandoned its plans for global expansion to instead focus on its core markets of Australia and the US.

Today, Higgins reckons the market is underappreciating Zip's cost discipline and its prospects for further growth in the US. 

Compared to US-listed BNPL peers, Higgins says Zip shares are the cheapest and could be in for a re-rate in FY27.

UCPS has a buy rating on Zip with a target share price of $4.85. This implies a potential 50% upside over the next 12 months. 

Higgins commented: 

Sustainable earnings momentum against structural growth is hard to find on the ASX currently. 

Resmed CDI (ASX: RMD)

The Resmed share price fell 26.6% to $28.88 on 30 June amid a broader healthcare sector downturn in FY26. 

Blake Halligan from Catapult Wealth has a buy rating on this ASX 200 healthcare share. 

Halligan explained (courtesy The Bull): 

ResMed is a global leader in sleep apnoea devices and digital health platforms, benefiting from strong structural demand and resilient clinical positioning.

Despite the progression in GLP-1 therapies for treating sleep apnoea, ResMed's CPAP (continuous positive airway pressure) treatments remain superior at this point in time.

RMD continues to offer appealing growth, income and defensive healthcare exposure.

QBE Insurance Group Ltd (ASX: QBE) 

The QBE share price lifted 7.7% in FY26 to close the year at $25.19. 

In an article, fund manager Market Partners described QBE as one of the most compelling artificial intelligence (AI) cost-reduction stories on the ASX.  

The QBE share price has been on a tear since the insurer reported a 21% increase in net profit after tax (NPAT) for FY25 in February.

QBE shares hit a multi-year high of $25.32 on the first day of the new financial year. 

Gerrish explained their bullish view on the ASX 200 financial share in a recent webinar: 

They've been working hard over the last five, 10 years around simplification of their business.

So they went out there, they made a huge number of acquisitions… and it's starting to pay benefits.

The experts said QBE was an emerging turnaround story, with the share price now trading at 15-year highs.

Gerrish added:

Turnarounds can take a lot longer than anyone envisages.

But once a turnaround is starting to gain traction like it is in QBE, then the stock can run a lot further and a lot longer than anyone thinks.

So, on 12x [P/E], growing earnings at high single digits, yielding 4.7% part-franked [dividends] with earnings tailwinds, we think QBE stacks up.

The post 3 ASX 200 shares to buy now: experts appeared first on The Motley Fool Australia.

Today's increase follows a strong share price rally so far in 2026, and marks the highest trading price in nearly 16 years.

The financial shares are now over 24% higher for the year to date, and around 5% higher than 12 months ago.

What has driven QBE shares higher?

QBE shares have been climbing higher on the back of support from a stronger insurance earnings backdrop and higher premiums.

Last month, the company posted its first-quarter FY26 update, revealing an 11% year-on-year increase in gross written premium (GWP), or 7% on a constant currency basis. 

The insurer reported total funds under management of $36.1 billion at the end of the quarter.

The company also maintained its FY26 outlook, pointing to mid-single-digit gross written premium growth and a group combined operating ratio of around 92.5%.

It looks like many investors were pleased with the update and are continuing to jump on board.

Do brokers rate the insurance stock as a buy, sell, or hold?

Experts are bullish on the outlook for QBE shares over the next 12 months. But it looks like, after the latest rally, a lot of the positive sentiment is already reflected in the share price. 

Market Index shows that the majority of brokers have a buy rating on QBE shares. But the $24.58 average target price implies just a tiny 0.1% upside at the time of writing.

TradingView data shows more diversity in analysts' sentiment. Of 11 analysts, seven have a buy or strong buy rating, two have a hold rating, and two rate the shares as a sell.

The average $24.81 target price implies a slightly higher 1% upside at the time of writing. However, some think QBE shares could climb up to 10% higher to $26.91 over the next 12 months.

Investment firm Market Partners is positive about the outlook for QBE shares. It recently noted that QBE has been working hard to simplify its business over the past 5 to 10 years, including a number of acquisitions, and it's now paying off. The experts said QBE is an emerging turnaround story. 

On the flip side, UBS raised concerns last month about the outlook for QBE shares. It said that there's potential for a softer insurance pricing backdrop heading into 2027, particularly if premium rate growth loses pace more quickly than expected. 

Meanwhile, Macquarie has a hold rating on QBE shares with a $25.10 price target. 

The post QBE shares soar to fresh multi-year high: Here's what brokers expect next appeared first on The Motley Fool Australia.

But can we continue to do so?

Investment firm, Market Partners, explains why it prefers another type of ASX financial share over banks for dividends these days.

Expert recommends better stocks for dividends

Instead of ASX 200 bank shares, Market Partners analysts James Gerrish and Shawn Hickman prefer insurance stocks.

The main case against the banks is not their relatively high share prices.

It's that investment loans have been powering their growth, and "that is likely to be pulled in" following the Federal Budget.

The Federal Government proposed major changes to capital gains tax (CGT) in the budget last month.

Under the changes, the 50% CGT discount for assets held longer than 12 months will be replaced by a cost base inflation indexation method from 1 July next year, and a minimum 30% CGT rate will apply.

In a webinar, Hickman, who is head of research at Market Partners' digital advice platform, Market Matters, said:

It's hard to imagine people are going to go out there aggressively in the near future and get fresh investment loans.

This may impact the earnings of the ASX 200 bank shares, which would threaten future dividends.

They're very secure businesses, but the growth factor for them to push a lot higher from here is very hard to imagine.

And that's why Market Matters is underweight.

We still own ANZ Group Holdings Ltd (ASX: ANZ). We still own Westpac Banking Corp (ASX: WBC). They're strong. They're going to make money. They're going to pay good dividends, but we don't see any reason to be overweight the banks.

While Gerrish emphasises that they are "certainly not negative on the banks" at today's share prices, investing is still "a relative game".

Gerrish explained:

… insurers benefit from higher interest rates. So they earn a higher income from their invested funds.

You pay your premiums, they invest the premiums, they earn a return on the premiums, then they pay out claims when they come up.

He points out that the insurance sector has experienced volatility for the past three or four years, but things have changed.

… now the tailwinds on the insurance side are improving, we think, and you think about insurers yielding circa 5%, banks mid-4%s.

Insurers have less economic sensitivity, banks have a greater degree of economic sensitivity relative to the insurers.

I think there's a case to be made that there's more upside in the insurers than banks.

That doesn't mean the banks don't go up from here, but there's probably more upside in terms of the insurance stocks relative to the banks.

Preferred ASX insurance share for dividends

Gerrish said Suncorp Group Ltd (ASX: SUN) is Market Matters' preferred ASX insurance share for dividends moving into FY27.

Since selling its banking division to ANZ, Gerrish reckons Suncorp has become a "simpler and safer institution".

He says a significant new reinsurance program, that takes about 2% off Suncorp's earnings, will protect future dividends for investors.

In this sort environment, where yield is really, really important, I think Suncorp stacks up here.

It trades about two P/E points cheaper than Insurance Australia Group Ltd (ASX: IAG).

I think it probably should trade more aligned with IAG.

Reinsurance protects Suncorp's earnings by transferring part of the financial risk of high payouts after major events.

Gerrish noted that climate change has raised risks and encouraged insurers to invest in reinsurance.

The experts point out that higher inflation can allow insurers to raise premiums, however it also makes repairs more expensive.

Gerrish added:

Insurance is a good business when they get their pricing discipline right and claims are benign.

That's the sort of environment that they're in now.

So insurance companies can now print a lot more money.

And the other thing around higher rates… is their investment portfolio has a long duration.

So, as they roll over fixed income — the majority is in fixed income — then they're getting higher rates of return on the investment portfolio as well.

Top ASX insurance share pick for growth

The experts said their top pick among ASX insurance shares for growth into FY27 is QBE Insurance Group Ltd (ASX: QBE).

Gerrish said:

They've been working hard over the last five, 10 years around simplification of their business.

So they went out there, they made a huge number of acquisitions… and it's starting to pay benefits.

The experts said QBE was an emerging turnaround story, with the share price trading close to 15-year highs.

Gerrish added:

Turnarounds can take a lot longer than anyone envisages.

But once a turnaround is starting to gain traction like it is in QBE, then the stock can run a lot further and a lot longer than anyone thinks.

So, on 12x [P/E], growing earnings at high single digits, yielding 4.7% part-franked [dividends] with earnings tailwinds, we think QBE stacks up.

ASX 200 bank share dividends

The trailing dividend yields of the ASX 200 bank shares are as follows:

• Commonwealth Bank of Australia (ASX: CBA) shares have a trailing dividend yield of 3% plus 100% franking
• National Australia Bank Ltd (ASX: NAB) shares have a trailing dividend yield of 4.5% plus 100% franking
• ANZ shares have a trailing dividend yield of 4.8% plus 70% to 75% franking
• Westpac shares have a trailing dividend yield of 4.3% plus 100% franking

The post Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) endured a red day this Thursday, with investors retreating after sending the market higher over the first half of the week. After a few healthy days, investors were clearly in a more sober mood today, with the ASX 200 dropping 0.62% after a bumpy session. That leaves the index at 8,911.1 points.

This thrifty day for the ASX comes after a decidedly red night up on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn't playing nice, falling 0.98%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, tumbling 1.34%.

But let's get back to the Australian market now and dive a little deeper into how the different ASX sectors handled today's tough trading conditions.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

At the time of writing, the benchmark is down 0.55% to 8,916 points after touching an intraday high of 8,983.8 points.

That leaves the market giving back Wednesday's 0.54% gain, although the index is still around 3% higher over the past week.

So, why has the local market lost ground today?

Wall Street gives investors a rough lead

Australian shares opened lower after a weak session in the United States overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) fell 0.98%, while the S&P 500 Index (SP: .INX) dropped 1.2% following the latest US Federal Reserve meeting.

The central bank left its benchmark interest rate unchanged at between 3.5% and 3.75%. However, updated forecasts showed 9 of the 19 officials now expect at least one rate rise before the end of 2026.

Keep in mind that's a major change compared to March, when no officials were forecasting an increase this year.

Nonetheless, US share market futures rebounded strongly during the Australian morning, helping the ASX 200 briefly move into positive territory.

But that support didn't last long, with sellers returning before midday.

Miners and banks weigh on the index

The losses are spread across much of the market, with 123 stocks trading lower, 68 higher and nine unchanged.

Several heavyweight miners are among those falling after iron ore, gold and copper prices softened overnight.

BHP Group Ltd (ASX: BHP) shares are down 0.24% to $65.43, while Fortescue Ltd (ASX: FMG) shares have dropped 1.70% to $19.98.

The major banks are also mixed. Commonwealth Bank of Australia (ASX: CBA) shares are 0.34% lower at $163.15, while Westpac Banking Corp (ASX: WBC) shares have fallen 1.14% to $35.16.

National Australia Bank Ltd (ASX: NAB) shares are down 1.30% to $37.18. However, ANZ Group Holdings Ltd (ASX: ANZ) shares are 0.17% higher at $35.11.

A few big names are holding up

There are still a few decent gains elsewhere in the market.

QBE Insurance Group Ltd (ASX: QBE) shares are up 1.53% to $23.93, while Woolworths Group Ltd (ASX: WOW) shares have gained 0.90% to $38.12.

CSL Ltd (ASX: CSL) shares are also 0.82% higher at $107.67 as the stock continues to recover from its recent lows.

And oil prices have fallen again after the United States and Iran signed an interim peace agreement that includes plans to reopen the Strait of Hormuz.

Brent crude was trading near US$78.66 a barrel, while West Texas Intermediate (WTI) had slipped to around US$75.81.

Despite this, Woodside Energy Group Ltd (ASX: WDS) shares have managed to edge 0.35% higher to $29.06.

The post Why has the ASX 200 given up its early rebound today? appeared first on The Motley Fool Australia.

After starting sharply lower this morning, the ASX 200 spent most of the day recovering and broke into positive territory for a brief moment this afternoon. But it was not to last, and the index ended up closing 0.23% lower at 8,633.2 points.

This tantalising day for ASX investors followed a much rougher night on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was smashed, dropping a nasty 1.87%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling 1.98%.

But let's get back to ASX shares now and take a look at what was going on amongst the various ASX sectors today.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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?

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.

The post QBE shares just hit a decade high. Is it too late to buy? appeared first on The Motley Fool Australia.

The S&P/ASX 200 financial stock is down 1.25% to $23.27 at the time of writing.

That leaves QBE up around 17% in 2026, despite being flat over the past year.

Today's fall comes after UBS analysts raised concerns about a softer insurance pricing backdrop, which could become a bigger issue heading into 2027.

So, why's UBS taking a more cautious look at the stock?

Let's dive in.

What UBS is watching

According to The Australian, UBS analyst Kieren Chidgey has pointed to a warning from Lloyd's as a potential issue for QBE.

Lloyd's has reportedly signalled it may intervene in 2027 growth plans because the insurance market is softening faster than expected.

QBE has exposure to this because it writes about 10% of its premiums through Lloyd's.

Chidgey does not appear to be saying QBE is directly in the firing line. In fact, he said QBE is unlikely to be caught in the intervention "cross-hairs" because of its long underwriting record.

The bigger concern is what this says about margins.

UBS said the underlying margin trajectory heading into 2027 is softening, with Lloyd's expecting rate adequacy to fall below long-term hurdle levels for the first time since 2018.

Property and energy asset coverage were named as two areas where growth could slow.

Why investors are taking notice

Insurance stocks have benefited from several years of strong premium increases, which have helped offset claims inflation, weather costs, and other risks.

QBE has been part of that trend. The company delivered a solid FY 2025 result, with statutory net profit after tax (NPAT) rising 21% to US$2.16 billion. Its combined operating ratio improved to 91.9%, which was its strongest result in several years.

The combined operating ratio is a key insurance measure. A lower number means the insurer is keeping more premium revenue after paying claims and costs.

QBE also lifted its full-year dividend by 25% to $1.09 per share. It has also guided to mid-single-digit gross written premium growth in 2026 and a group combined operating ratio of around 92.5%.

But after a strong run-in premiums and margins, investors are being reminded that insurance pricing may not keep moving in the same direction forever. If pricing pressure builds into 2027, the market may start paying closer attention to whether QBE can protect its margins.

Why QBE still has support

QBE still has some support because it is a global insurer with a broad earnings base.

The company operates across 27 countries and has exposure to Australia, North America, Europe, and other international markets. This gives it more spread than a domestic insurer tied mostly to one economy or one insurance market.

The stock also still offers a dividend yield of about 4.65%, which may be another reason investors have been willing to stick with it this year.

The post UBS sounds the alarm on this ASX 200 financial stock after a big 2026 run appeared first on The Motley Fool Australia.

However, a combination of rising premium rates, improving underwriting margins, and disciplined capital management is creating an interesting investment backdrop for Insurance Australia Group Ltd (ASX: IAG) and QBE Insurance Group Ltd (ASX: QBE).

Why premiums keep rising

The driver behind both stocks is relatively straightforward.

Australia's insurance industry has spent the past three years repricing policies upward to recover from a period of elevated claims costs.

These costs were driven by natural catastrophes, supply chain inflation, and building cost increases that significantly exceeded what premiums had priced in.

That repricing cycle has not yet fully run its course.

IAG CEO Nick Hawkins confirmed at the company's half-year results that the business is forecasting high single-digit premium growth for the full year FY2026, with the Australian retail business delivering 14.4% top-line growth in the first half.

QBE similarly reported double-digit premium growth in Q1 2026 and maintained its optimistic full-year outlook.

Gross written premium grew 7% in constant currency across FY2025 driven by targeted expansion across its North American and International divisions.

Insurance Australia Group

IAG is Australia's largest general insurer, writing more than $14 billion in premium per annum across brands including NRMA, RACV, and CGU.

The first half of FY2026 was a noisy result on the surface, with statutory net profit after tax falling 35% to $505 million.

This was largely due to a one-off $174 million weather impact from the newly acquired RACQI portfolio before it was integrated into IAG's comprehensive reinsurance program in January 2026.

Stripping out those one-off items, the underlying picture was considerably more constructive.

Underlying insurance profit grew 7.6% to $804 million and the underlying insurance margin held at 15.1%, with management maintaining full-year FY2026 insurance profit guidance of $1.55 billion to $1.75 billion.

The board also announced an on-market share buyback of up to $200 million, reflecting a strong capital position that gives IAG the flexibility to keep returning cash to shareholders even while investing in the RACQI integration.

However, investors should note that IAG could face a claim in an upcoming Greensill court case, with the company provisioning $432 million for legal fees and claims handling while maintaining it expects no net exposure.

IAG shares have fallen in the last 12 months, which may have created a more attractive entry point for investors.

QBE

QBE offers a different but equally interesting angle on the rising premium theme.

As Australia's second largest international insurer, QBE operates across 27 countries, giving it a diversified premium base that is less exposed to Australian weather events than IAG.

QBE's FY2025 full-year result delivered a 21% lift in statutory net profit after tax to US$2.16 billion, comfortably ahead of market expectations, with its combined operating ratio improving to 91.9%, the strongest result in several years.

The company declared a full-year dividend of A$1.09 per share, a 25% lift on the prior year, and maintained a 50% payout ratio.

QBE is guiding to continued double-digit premium growth in 2026, with Q1 results confirming the momentum has carried into the new year.

Foolish takeaway

IAG and QBE are each navigating their own near-term complexities, whether that is weather events, legal uncertainty, or the pace of global premium moderation.

Nevertheless, the backdrop of rising premiums, improving underwriting discipline, and strong capital positions makes both stocks worth serious consideration for investors seeking quality financial exposure beyond the big four banks.

The post Why rising insurance premiums could make these 2 ASX insurers very attractive right now appeared first on The Motley Fool Australia.

Australia's benchmark index rose just over 1% during Tuesday's trading session.

This sparked fresh 52-week highs for several well-known ASX shares. 

Here's what experts are saying about these companies right now. 

Telstra Group Ltd (ASX: TLS)

Telstra shares rose another 2% yesterday to hit fresh 52-week highs of $5.52 per share. 

It has now climbed 13% year to date, as investors have pushed their chips in on defensive options like Telstra. 

It is considered a defensive stock because telecommunications services are essential, so customers tend to keep paying for mobile and internet plans even during economic downturns. 

Its large market share, recurring revenue, and relatively stable dividend payments also make earnings less volatile compared with more cyclical industries like mining or retail.

Following this recent share price rise, it appears that Telstra shares are close to fully valued. 

Catapult Wealth recently placed a hold recommendation on the company. 

Additionally, 13 analyst forecasts via TradingView indicate the current share price is 5% above fair value. 

QBE Insurance Group Ltd (ASX: QBE)

QBE shares rose 3% yesterday to hit a fresh 52-week high of $24 per share. 

It has now climbed 21% year to date. 

It has been one of the beneficiaries of rising interest rates. 

QBE is Australia's second-largest international insurer. 

Insurers can benefit from interest rate rises because they invest premiums and earn more when yields rise.

With that being said, it now appears that QBE shares are approaching fair value. 

Macquarie recently downgraded QBE shares to a hold rating with a $25.10 price target. 

This indicates just 4% upside from current levels. 

Superloop Ltd (ASX: SLC)

Superloop is an Australian telecommunications and internet infrastructure company that provides broadband and NBN services, fibre networks and enterprise connectivity. 

Yesterday, its share price climbed 1.4% to hit a new 52 week high of $3.56. 

It has now risen almost 40% year to date. 

The share price rise has been driven by positive growth for the company. 

It recently reported a 21.2% increase in customers and a 23.3% lift in revenue compared to the prior year.

Despite these positive metrics, the company appears close to full valuation right now. 

Nathan Lodge from Securities Vault recently placed a hold rating on this ASX telecommunications share.

Furthermore, eight analyst ratings via TradingView have an average 12 month price target of $3.50 on Superloop shares. 

The post Are Telstra and these ASX shares a buy, hold or sell after hitting new yearly highs? appeared first on The Motley Fool Australia.

I won't leave you hanging.

While higher costs and rates will impact market dynamics, my answer remains a resounding yes.

But you may wish to target a different basket of ASX shares than you might buy in a falling rate environment.

We'll look at a few you may want to consider adding to your portfolio below.

But first…

What on earth is happening with interest rates in Australia?

Inflation down under was already ticking higher in the latter months of 2025 and into 2026 before the onset of the Iran war at the end of February.

That resurgent inflation was partially spurred by greater capacity pressures. But with energy costs rocketing amid the Middle East conflict, cost of living pressures are likely to ramp significantly higher before we see any relief.

In an effort to get ahead of the curve, this saw the RBA boost Australia's official interest rate by another 0.25% on Tuesday. This third consecutive hike from the central bank sees the official interest rate at 4.35%. That's back at its 2024 peak, and it matches the highest rate levels since 2011.

While many ASX shares initially sank on the RBA's afternoon announcement on Tuesday, the All Ordinaries Index (ASX: XAO) clawed back those losses to close the day around where it was before the rate hike news hit the wires.

Buying ASX shares in a higher interest rate environment

Commenting on the RBA's latest interest rate increase, and how investors should respond, Josh Gilbert, lead analyst for APAC at eToro, said:

The takeaway for portfolios is that boring can be brilliant in this environment. Focus on quality balance sheets and pricing power, because companies that can pass costs through without losing volume are the ones that can hold up best with the current macro backdrop.

One ASX share that looks to fit this bill is Transurban Group (ASX: TCL).

While the toll road owner and operator won't be immune to the impacts of higher energy prices on its traffic volumes, Transurban is able to increase prices to match inflation across many of its toll roads. Indeed, the company reported that more than 90% of its revenue is either CPI-linked or with fixed escalations.

Other ASX shares that could perform well amid rising inflation and rates are insurance stocks.

Companies like QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN) generally hold a sizeable pool of cash and bonds, which should offer an income boost amid higher interest rates.

And don't lose track of the Aussie dollar.

With Australian interest rates outpacing those in the United States, the Aussie dollar hit four-year highs this week, recently trading for 72.4 US cents. That's up from 64.3 US cents a year ago.

This big shakeup in currency exchange rates should tend to favour importers over exporters. Imported goods will be cheaper in Aussie dollar terms while exported goods will be more expensive for buyers paying in US dollars.

The post Should you still buy ASX shares amid fast-rising inflation and interest rates? appeared first on The Motley Fool Australia.

Over the past 12 months, QBE shares have risen around 2.6%, trailing the S&P/ASX 200 Index (ASX: XJO), which gained roughly 8% over the same period.

So, what exactly did the insurance giant report?

Strong premium growth

QBE is one of Australia's largest insurers, operating across Australia, North America, Europe, and Asia. The company provides a broad range of insurance products spanning commercial, crop, property, and specialty insurance. One of QBE's key strengths is its global diversification. It generates earnings across multiple markets and insurance categories, helping reduce reliance on any single region or business line.

On Friday, the ASX financial stock reported strong premium growth for the first quarter of 2026. Gross written premium (GWP) increased 11%, or 7% on a constant currency basis. Growth was particularly strong in targeted segments, including North America Crop and selected portfolios within its International division.

QBE also continued benefiting from supportive insurance pricing conditions. Group premium rates increased around 2% during the quarter, although management flagged rising competition in commercial property insurance and the Lloyd's market.

Storms Northern Hemisphere

At first glance, the update from the ASX financial stock looked solid.

But investors appeared more focused on claims costs and broader market risks. QBE revealed catastrophe claims had reached approximately $300 million during the first four months of the year. These costs were driven largely by multiple weather events in Australia and storms across the Northern Hemisphere.

The company also disclosed limited exposure to the Middle East conflict, estimating net claims of roughly $60 million, which were included within catastrophe costs.

While those figures remain manageable for a company of QBE's scale, they highlight the growing volatility insurers face from extreme weather events and geopolitical instability. That may help explain the weaker share price reaction despite strong premium growth.

What next for the ASX financial stock?

Looking ahead, management maintained its full-year 2026 guidance.

QBE still expects mid-single-digit gross written premium growth on a constant currency basis and a Group combined operating ratio of around 92.5%.

The ASX financial stock also reaffirmed its medium-term targets, including adjusted return on equity above 15% and ongoing premium growth. Management said the business remains focused on disciplined underwriting, portfolio management, and navigating dynamic global insurance conditions.

Investors will get a closer look at earnings momentum when QBE releases its first-half 2026 results on 14 August.

Foolish Takeaway

For now, the market appears to be balancing two competing forces: strong operating performance on one side, and rising catastrophe risks and competitive pressures on the other.

That combination may explain why QBE shares slipped despite what looked like a solid quarterly update overall.

The post Why is this ASX financial stock dropping despite solid results? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is down 1.5% to $238.24. This follows the release of the investment bank's full-year results, which have been overshadowed by a market selloff. Macquarie reported net profit after tax of $4.85 billion for FY 2026, which is up 30% on FY 2025. This was driven by a very strong second half, with net profit coming in at $3.19 billion. This was a record half-year result and represented a 93% increase on the first half.

QBE Insurance Group Ltd (ASX: QBE)

The QBE Insurance share price is down 1.5% to $22.28. Investors have been selling the insurance giant's shares following the release of its quarterly update. QBE reported gross written premium (GWP) growth of 11% year-on-year. However, taking some of the shine off the result was its net cost of catastrophe claims. It was approximately $300 million for January to April. This reflects multiple events in Australia and storms in the Northern Hemisphere.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is down a further 10% to 79 cents. Investors have been selling this gambling company's shares amid news that it has become the subject of an AUSTRAC enforcement investigation. This relates to anti-money laundering and counter-terrorism financing compliance. AUSTRAC has stated that the investigation is at an early stage and its approach will be determined once sufficient evidence has been collected and assessed. Tabcorp's CEO, Gillon McLachlan, said: "I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the Company's transformation and we will work constructively with AUSTRAC through this process."

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down 4% to $37.70. This has been driven by the banking giant's shares going ex-dividend this morning. This month, the big four bank released its half-year results and declared a 77 cents per share fully franked dividend. Eligible shareholders can now look forward to receiving this next month on 26 June.

The post Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today appeared first on The Motley Fool Australia.

Two of the blue-chip ASX shares are outpacing the 1.6% losses posted by the S&P/ASX 200 Index (ASX: XJO) as we head into the Friday lunch hour, while one is trailing that performance.

Here's what's happening.

Macquarie shares slide following Thursday's record close

After notching a new all-time closing high yesterday, Macquarie shares are down 2.2% at the time of writing, trading for $236.45 apiece.

Investors are pressuring the ASX 200 diversified financial stock despite the company reporting some strong full-year FY 2026 results.

For the 12 months to 31 March, Macquarie achieved growth across all of its operating groups.

This saw the company post a 30% year-on-year increase in net profit after tax (NPAT) to $4.85 billion. The second half of the financial year was particularly strong, with Macquarie reporting H2 NPAT of $3.19 billion, up 93% from the first half.

On the passive income front, management declared a final partly franked dividend of $4.20 per share, up 7.7% from last year's final dividend.

Commenting on the results that have yet to boost Macquarie shares today, CEO Shemara Wikramanayake said:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities

Block shares charge higher on rising profits

Also grabbing headlines and bucking the broader market sell-down today, Block shares are up 5.1% at the time of writing, changing hands for $103.38 each.

Investors are bidding up the ASX 200 buy now, pay later (BNPL) company, which acquired Afterpay in 2022, following the release of its first-quarter update (Q1 2026).

Highlights for the first quarter included a 5% year-on-year increase in net revenue to US$6.06 billion. And Block's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) hit a record US$1.01 billion for the quarter.

On the bottom line, Block's gross profit was up 27% from Q1 2025 to US$2.91 billion.

"We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers," Block CEO Jack Dorsey said.

Which brings us to…

QBE shares slip on Q1 update

Joining Block and Macquarie shares in turning heads today, QBE also released its first-quarter update this morning.

Shares in the ASX 200 insurance giant are modestly outpacing the losses on the benchmark index today, down 1.4% at $22.33 apiece.

Highlights for the quarter include an 11% year-on-year increase in QBE's gross written premium (GWP), or 7% on a constant currency basis.

The insurer reported total funds under management of $36.1 billion at the end of the quarter.

And with interest rates on the rise, QBE's core fixed income yield increased to 4.1% over Q1. That's up from an average of 3.7% achieved in FY 2025.

The post Why QBE, Block and Macquarie shares are grabbing headlines on Friday appeared first on The Motley Fool Australia.

What did QBE Insurance Group report?

• Gross written premium (GWP) up 11% year-on-year; 7% on a constant currency basis
• Ex-rate GWP growth of 6%, with strength in North America Crop and International portfolios
• Net cost of catastrophe claims at approximately $300 million for January to April 2026
• Investment income of about $500 million in the first four months of 2026
• Core fixed income yield increased to 4.1% at 1Q26 (from 3.7% at FY25)
• Total funds under management of $36.1 billion at 1Q26

What else do investors need to know?

QBE reported that premium growth was particularly strong in targeted areas, including North America Crop and select portfolios in its International division. Market conditions remain supportive, with Group premium rate increases of around 2% in the quarter, although competitive pressures were flagged in commercial property and at Lloyd's.

On the claims front, QBE noted a net cost of catastrophe claims of roughly $300 million during the first four months of the year, primarily due to multiple events in Australia and storms in the Northern Hemisphere. Direct underwriting exposure to the Middle East conflict remains limited, with estimated net claims around $60 million included in catastrophe costs.

What did QBE Insurance Group management say?

QBE noted:

We are pleased with performance through the start of 2026, underpinned by targeted premium growth alongside resilient underwriting and investment management. We expect mid-single-digit GWP growth with a Group combined operating ratio of ~92.5% in FY26 and remain confident in sustaining strong performance over the medium-term.

What's next for QBE Insurance Group?

Looking ahead, QBE reiterated its full-year 2026 outlook, expecting mid-single-digit gross written premium growth on a constant currency basis, and a Group combined operating ratio of around 92.5%. Over the medium term, management aims for an adjusted return on equity above 15% and ongoing GWP growth.

The company will release its 1H26 results on Friday 14 August 2026. QBE says it remains focused on disciplined underwriting, portfolio management, and navigating dynamic global insurance markets.

QBE Insurance Group share price snapshot

Over the past 12 months QBE shares have risen 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post QBE Insurance Group reports Q1 2026 earnings appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to sink on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 136 points or 1.5% lower this morning. On Wall Street, the Dow Jones was down 0.65%, the S&P 500 fell 0.4%, and the Nasdaq edged 0.1% lower.

Oil prices mixed

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Friday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.9% to US$95.91 a barrel and the Brent crude oil price is down 0.1% to US$101.11 a barrel. Traders appear to be waiting to hear if the US and Iran sign a peace deal.

Major ASX 200 share updates

A number of ASX 200 shares will be on watch when they release their latest updates on Friday. Among the companies that are due to release updates are investment bank Macquarie Group Ltd (ASX: MQG), property listings company REA Group Ltd (ASX: REA), insurer QBE Insurance Group Ltd (ASX: QBE), and payments leader Block Inc. (ASX: XYZ).

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.65% to US$4,724.1 an ounce. This has been driven by optimism that interest rate hikes will be avoided if a US-Iran peace deal is signed.

TechnologyOne shares upgraded

TechnologyOne Ltd (ASX: TNE) shares are undervalued according to analysts at Bell Potter. This morning, the broker has upgraded the enterprise software provider's shares to a buy rating with an improved price target of $31.75. It said: "Technology One announced a new contract with James Cook University (JCU) last month which in our view is significant from a product perspective. […] On the back of this contract win and clear demonstration of "the power of Plus" we have modestly increased our ARR forecasts in each period."

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.