QBE Insurance Group Ltd (QBE.AU) shares plummeted 5.01% in intraday trading, following Macquarie's decision to trim its price target for the Australian insurer. The stock's sharp decline comes amid growing concerns over potential higher-than-budgeted catastrophe claims in the first quarter of 2025.

Macquarie, a leading financial services group, reduced its price target for QBE Insurance to A$23 from A$23.2, while maintaining an "outperform" recommendation. The adjustment was accompanied by a 4.9% cut in the FY25 earnings estimate, reflecting increased caution about the company's near-term prospects. Analysts cited potential impacts from recent natural disasters, including California wildfires, Cyclone Alfred, and Queensland flooding, as factors that could push Q1 2025 catastrophe claims above the budgeted amount.

Despite the day's significant drop, QBE Insurance's stock remains up 10.9% year-to-date, outperforming the ASX 200 benchmark's 5% gain. The average rating from 13 analysts covering the stock remains a "buy," with a median price target of A$24.05, according to data compiled by LSEG. This suggests that while short-term headwinds are present, the long-term outlook for QBE Insurance remains generally positive in the eyes of market analysts.