ASX financial shares underperformed the S&P/ASX 200 Index (ASX: XJO) in FY23. The S&P/ASX 200 Financials Index (ASX: XFJ) gained 7.81% while the benchmark index ascended 9.67%.
Here are the top performers of the financials sector in FY23, according to data from S & P Global Market Intelligence.
The top ASX financial shares of FY23
AUB Group Ltd (ASX: AUB)
Shares in ASX 200 insurance broker AUB Group rose by 66% in FY23. In AUBâs half-year report, the insurer reported a rising net profit after tax (NPAT) of $46.7 million, up from $30.6 million in 1H FY22, and upgraded its guidance for FY23. The company said ongoing network optimisation, disciplined acquisitions, and enhanced broker propositions had driven the growth. The results also showed the value of the Tysers acquisition, with revenue and profit “above expectationsâ during the first three months.
Pinnacle Investment Management Group Ltd (ASX: PNI)
The Pinnacle Investment Management share price rose by 42% in FY23. The ASX financial share experienced a significant surge very early in FY23. It rose from the mid-$7 range in July 2022 to the mid-$11 range by mid-August. This followed the release of the investment companyâs full-year FY22 results, which revealed a 14% increase in NPAT to $76.4 million. AUB’s 1H FY23 results were not as good, but the share price maintained a fairly solid footing to end the year significantly higher.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is a diversified investment company. This ASX financial share is an ASX 200 stalwart that has been listed for more than 100 years. It owns a range of assets, including stocks and private businesses. The Soul Patts share price rose by 35% in FY23. A recent update revealed a net asset value (NAV) of $10.6 billion. Soul Patts is a favourite pick of my colleagues Tristan and Sebastian and is the only ASX 200 stock to raise its dividends every single year since 2000. Soul Patts has paid 94 cents per share in fully franked dividends over the past 12 months.
Insurance Australia Group Ltd (ASX: IAG)
The IAG share price rose by 31% in FY23, and the company says it is on track to achieve its guidance for the year. The ASX 200 insurer held a successful investor day last month and released a new presentation. The company has been leveraging rising inflation to raise its motor, home, and commercial insurance policy premiums. IAG is among several ASX financial shares with share buybacks underway.
QBE Insurance Group Ltd (ASX: QBE)
The QBE share price rose by 29% in FY23. Like most insurance companies, QBE has been lifting its premium prices and also has a strong balance sheet. In its last quarterly report, QBE noted a 14% jump in gross written premiums on a constant currency basis. Additionally, its group-wide renewable rate increases averaged 10%. Morgans thinks this ASX financial share has more price growth left. The broker has an add rating and a $16.50 price target on the stock. The QBE share price is currently $15.84.
