Up 23% in the past year. Is it too late to buy this ASX 200 insurance share?

Brokers are tipping as much as 18% upside for this ASX 200 insurance stock.

| More on:
Woman using laptop for job search

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The QBE share price has been on a roll lately, peaking at a near-10-year high of $15.64 today
  • The stock rocketed on the back of its latest earnings release, wherein it tipped growth to continue this financial year
  • Many top brokers remain bullish on QBE, with one tipping it to soar to $18

The share price of S&P/ASX 200 Index (ASX: XJO) giant QBE Insurance Group Ltd (ASX: QBE) leapt to long-forgotten heights on Monday. The stock peaked at a near-decade high of $15.64 earlier today.

Unfortunately, the QBE share price has since slumped to trade at $15.31 this afternoon. That's 0.26% lower than its previous close.

So, what might the future hold for the ASX 200 insurance share? Let's take a look.

Is this ASX 200 insurance share still in the buy zone?

The QBE share price has been on a roll lately, with the most recent news from the company being its financial year 2022 earnings, released in February.

The insurance provider posted a combined operating ratio (COR) of 93.7% – an improvement on the prior year's 95% COR. Meanwhile, it posted a 13% growth in gross written premium (GWP).

Looking forward, the company expects further improvement, with its financial year 2023 Plan Group COR guidance sitting at around 93.5% and its GWP growth tipped to be in the mid-to-high single digits.

Not to mention, its investment portfolio has seen improvements on the back of interest rate hikes, while its premiums have largely been lifted in line with inflation.

All that means the company could have the potential to thrive in the current environment.

And the ASX 200 insurance provider isn't the only one that's hopeful of its future – many experts are bullish on its shares.

What do experts say?

Brokers and experts broadly appear hopeful for the QBE share price.

UBS, Goldman Sachs, and Morgans all have buy ratings on the stock, with respective price targets of $18, $17.45, and $16.98. That represents between 11% and 18% of potential upside.

Morgans thinks the share is cheap right now. It also expects benefits from rate hikes are yet to be felt in the ASX 200 company's insurance book, my Fool colleague James Mickleboro reports.

UBS, meanwhile, expects strong premium prices to bolster the QBE's bottom line.

Speaking of, Goldman Sachs notes the company's well-capitalised balance sheet could bode well in the current uncertain economic environment.

Finally, Airlie senior investment analyst Joe Wright is also bullish, as The Motley Fool Australia's Tony Yoo reports. Wright recently wrote for the fund manager's blog:

We continue to believe QBE is underearning as margins for both the North American business unit, and more recently the Lloyd's syndicates, have dragged on group performance.

QBE share price snapshot

The QBE share price has been on a roll lately – the ASX 200 insurance stock has soared 23% over the last 12 months. It's also gained 17% since the start of 2023.

Meanwhile, the ASX 200 has risen 5% year to date and 2% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

A man holds his head as he looks at his laptop and contemplates more bills to pay.
Financial Shares

Down 19%! Is the GQG share price selloff an overreaction and buying opportunity?

Is now the time to pounce on this beaten down stock? Let's see what Goldman Sachs is saying.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

IAG share price reaches new 5-year high! What next?

It’s been a great period for the insurance giant. Could it keep rising?

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Financial Shares

This $7 billion ASX 200 stock just crashed 11%. What's going on?

There's trouble in India and it's weighing on this stock today.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Financial Shares

Here's what this top broker is saying about Macquarie shares

Is this investment bank heading to a new record high?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Financial Shares

Up 25% in a year, why this ASX All Ords stock has 'plenty more upside'

Analysts think this stock could still have plenty of gas left in its tank.

Read more »

Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.
Financial Shares

'Strong momentum': 2 ASX financial shares backed by top fundie for 2025

ASX financial shares had a strong trading session on Tuesday with several new price records set.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

AMP shares on radar as M&A spotlight shines bright

The stock has rallied hard in 2024.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Are IAG shares still a buy for dividends at a 5-year high?

Here's my take on IAG's place in an income portfolio today.

Read more »