In anticipation of August results, Credit Suisse reviews earnings and valuations for the general insurance sector, which is still lagging the market versus pre-covid levels.
The broker is very positive on QBE Insurance Group, as overseas comparables continue to confirm ongoing rate momentum. The analyst highlights the group is currently trading at a -35% discount to the market, well below its five-year average discount of around -20%.
The Outperform rating and $13.30 target are retained.
Sector: Insurance.
Target price is $13.30.Current Price is $10.68. Difference: $2.62 – (brackets indicate current price is over target). If QBE meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
