QBE

Company result

QBE reported the best claims ratio, and the best combined operating ratio, seen for a number of years. This is very pleasing.

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We’ve been long QBE given our expectations of an improving premium cycle, and the normalisation of loss ratios, both of which would lead to an improved share price outcome.

The premium cycle has now likely peaked, but continues to lift QBE’s revenues, and will likely continue to remain strong in absolute terms, as the industry needs to uplift profitability, via continued repricing of premiums, to reflect the higher incidence of natural catastrophes due to climate change.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

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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