“QBE has given a third quarter 2024 performance update re-affirming financial year 2024 guidance parameters, e.g. a 93.5% combined operating ratio and 3% gross written premium (GWP) growth.
“This was a solid update, in our view, without any obvious negative surprises.
“We think QBE achieving financial year 2024 guidance, and a second straight year of catastrophe losses inside budget, gives more confidence on the strategy being executed by management.
“We lift our QBE financial year 2024F/2025F earnings per share (EPS) by approximately 2% respectively an increase to our QBE underwriting margin assumptions.
“Our PT (price target) rises to A$21.37 on a valuation roll-forward.
“While QBE has re-rated in-line with our investment thesis, it still trades on only approximately 11x earnings, which is a significant discount to peers Suncorp (SUN) and IAG (18x-19x).
“We maintain our ADD recommendation with a price target (PT) of A$21.37
QBE Insurance Group. QBE
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
