Macquarie predicts FY21 general insurance results will be highlighted by hazard allowance overruns, long-term growth challenges and an absence of new information related to business interruption (BI) provisions.
The broker maintains an Outperform recommendation for Suncorp Group, with the underlying insurance trading ratio’s (ITR) bottoming in FY21, and upside EPS risk should bank provisions unwind. The target price slips to $12.80 from $13.20.
Sector: Insurance.
Target price is $12.80.Current Price is $11.46. Difference: $1.34 – (brackets indicate current price is over target). If SUN meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
