A strong result.
The key comment is highlighted below, the best full year revenue performance in almost a decade.
Whilst the premium hardening cycle (e.g. price) continues to be strong, so too does volume growth, across both motor and home.
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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Please note that past performance is not a reliable indicator of future performance.
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