Consistent with recent APRA statistics, Credit Suisse notes overall pricing for motor and home (new business) strengthend materially in the quarter to January 2022. It’s expected this trend will continue and potentially accelerate.
However, QBE Insurance decreased its motor rates in the quarter, the only insurer in the broker’s sample to do so. It was also the only insurer to keep home rates flat.
Nonetheless, the broker maintains its Outperform rating and $14.45 target price.
Sector: Insurance.
Target price is $14.45.Current Price is $10.91. Difference: $3.54 – (brackets indicate current price is over target). If QBE meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
