Why QBE (ASX:QBE) And Brambles (ASX:BXB) Are Back On The ASX Quality-Value Radar

Highlights

• QBE (ASX:QBE) and Brambles (ASX:BXB) are attracting attention on quality-value screens.
• Both companies combine durable business models with resilient earnings characteristics.
• Quality-value investing focuses on strong businesses trading at reasonable valuations across the ASX 200 .

Quality-value investing is once again gaining attention across the Australian share market as investors look beyond high-growth themes and focus on companies capable of delivering consistent earnings through different market conditions. Among the businesses drawing renewed interest are QBE Insurance Group (ASX:QBE) and Brambles Limited (ASX:BXB) , two established companies recognised for combining durable business models with attractive valuation characteristics.

Rather than focusing purely on companies trading at deep discounts, the quality-value approach seeks businesses that possess competitive advantages, resilient cash generation and disciplined capital management while remaining reasonably priced. As market conditions evolve, this strategy continues to attract attention across the ASX 200 , where investors increasingly balance growth expectations with business quality.

What makes quality-value investing different?

Quality-value investing differs from traditional value investing, which often focuses on companies trading at depressed valuations regardless of business quality.

Instead, quality-value investors look for businesses that possess:

• Durable competitive advantages
• Consistent earnings generation
• Strong balance sheets
• Sustainable cash flows
• Disciplined capital allocation
• Reasonable market valuations

The objective is to avoid so-called "value traps," where a low valuation reflects structural business deterioration rather than temporary market pessimism.

QBE (ASX:QBE): A global insurer benefiting from pricing discipline

QBE Insurance Group (ASX:QBE) remains one of Australia's largest globally diversified insurers, with operations spanning Australia Pacific, North America and international markets.

Its earnings are primarily influenced by three major drivers:

• Insurance premium pricing
• Claims experience
• Investment income earned on insurance float

The insurance sector has benefited from stronger premium pricing over recent years, allowing insurers to improve underwriting performance while managing elevated claims costs.

QBE's diversified geographic footprint also provides exposure across multiple insurance markets, reducing reliance on any single region.

However, insurers continue monitoring several important factors, including catastrophe claims, reserve adequacy and fluctuations in financial markets that may influence investment returns.

Despite these considerations, QBE continues to feature on quality-value screens due to its established market position and resilient operating model.

Brambles (ASX:BXB): A global logistics leader built on recurring demand

Brambles Limited (ASX:BXB) represents a different type of quality business.

Best known for its globally recognised CHEP pallet-pooling network, Brambles operates one of the world's largest supply-chain asset sharing platforms.

Its business model benefits from several structural strengths:

• Extensive global logistics network
• Recurring customer relationships
• High switching costs
• Significant network scale
• Asset utilisation advantages

These characteristics make the business difficult for competitors to replicate.

Because customers rely on CHEP's pallet pooling infrastructure throughout global supply chains, Brambles enjoys relatively stable demand across multiple industries.

Pricing power, operational efficiency and network density continue supporting long-term earnings resilience.

Input costs—including timber, transportation and logistics expenses—remain important variables, although the company's scale provides meaningful operating advantages.

Why earnings resilience matters

One defining feature of quality-value investing is the emphasis on earnings resilience.

Rather than chasing businesses with the fastest growth rates, investors often favour companies capable of maintaining profitability through varying economic environments.

For QBE, earnings resilience is supported by diversified insurance operations and disciplined underwriting.

For Brambles, resilience stems from long-term customer relationships and recurring logistics demand supported by its global pooling network.

These characteristics often become increasingly valuable during periods of economic uncertainty.

What investors may continue watching

Several operating indicators remain important for both companies.

For QBE (ASX:QBE) , attention typically centres on:

• Premium pricing trends
• Claims performance
• Underwriting margins
• Investment portfolio returns
• Capital management

For Brambles (ASX:BXB) , market participants often monitor:

• Supply-chain activity
• Pricing initiatives
• Operating margins
• Asset utilisation
• Capital returns

These metrics provide insight into how effectively each company continues executing its long-term strategy.

Why quality-value strategies remain relevant

Across the ASX 300 , quality-value investing continues attracting attention as market participants seek businesses capable of delivering durable financial performance without relying solely on rapid earnings expansion.

The approach acknowledges that high-quality businesses rarely trade at substantial discounts, but it also recognises that paying a reasonable valuation for resilient companies may provide greater stability over time than pursuing deeply discounted businesses facing structural challenges.

QBE Insurance Group (ASX:QBE) and Brambles Limited (ASX:BXB) continue illustrating how companies operating in entirely different industries can share many of the same characteristics valued by quality-focused market participants.