QBE
Strong GWP growth, excellent underwriting outcomes, and the big one, the quadrupling in exit run rate for the investment portfolio.
For us, QBE has been, firstly, a play on rising interest rates, with the added tailwind of a global insurance hardening cycle, and secondly, a redemption story, in which improved underwriting would lead to higher, more consistent profits, after years of patchy, irregular performance.
Warren (of Omaha fame) would tell us the underwriting outcomes are the one’s that matter. The investment income (returns to float) are the cherry on top. And with yields now vastly higher, that will be quite the cherry, moving forwards.
In turn, that would lead to a share price rerate, which appears (more or less) underway.
That looks set to continue, and we are happy holders.
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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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