QBE Insurance Group Ltd
QBE: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$35.00 | Crbt | Ppkqpbdh |
QBE’s 2020 Result Was Weak, but Higher Premiums Provide a Good Starting Point for 2021
We reduce our QBE fair value estimate by 5% to AUD 10.50 per share as we incorporate a stronger Australian dollar into our forecasts. The forgettable 2020 result does not change our view on the insurer. We believe the 9.8% increase in average premium prices in fiscal 2020, with momentum accelerating to 12.6% in the fourth quarter, will see the insurer generate much better margins in the near term, especially without one-off claims associated with COVID-19.