QBE Insurance Group expects to report a statutory loss of -US$750m in the first half. The group also expects to incur costs of -US$600m, of which -US$335m will be in its first-half result, reports Credit Suisse.
Believing the group is only partway through the pandemic, Credit Suisse states it cannot yet sign off on covid-19 related losses.
The broker acknowledges the group is exposed to one-off claims in the present environment. However, it also considers the outlook to be improving and margins may improve better and faster than expected.
Credit Suisse maintains its Outperform rating with the target price increasing to $12 from $10.15.
Sector: Insurance.
Target price is $12.00.Current Price is $9.83. Difference: $2.17 – (brackets indicate current price is over target). If QBE meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
