The NSW court of appeal has found in favour of policyholders and against General Insurers, in relation to the test case examining business interruption (BI) policy exclusions that reference the Quarantine Act.
The Insurance Council of Australia (ICA) is currently considering whether there are grounds for an appeal against the ruling.
QBE Insurance Group has disclosed the net cost of any BI claims in Australia is likely to be limited to -$5m per occurrence, under the group’s catastrophe reinsurance cover.
Morgans leaves the earnings forecast and price target unchanged. This reflects the broker’s view that the impact of the test case is largely factored into current numbers.
The Add rating and $12.07 target price are unchanged.
Sector: Insurance.
Target price is $12.07.Current Price is $10.00. Difference: $2.07 – (brackets indicate current price is over target). If QBE meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
