SUN

Company result

A strong result.

The key comment is highlighted below, the best full year revenue performance in almost a decade.

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Whilst the premium hardening cycle (e.g. price) continues to be strong, so too does volume growth, across both motor and home.

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SUN have a substantial allocation to inflation linked bonds, which have benefited from the strong recovery in breakeven inflations. This is more of a one-off, and given the low underlying yields of the bond portfolio, shouldn’t be extrapolated.

We’ve been hearing about the very strong pricing cycle underway from global insurance companies for a while now, and our flagship exposure is QBE. The SUN results bodes well, although SUN is a better peer group comparator for IAG.

The recent GMA result (strong mortgage lenders insurance market) also had some positive look throughs for QBE’s business.

Still, we will have to wait.

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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

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