In late March QBE delivered an excellent FY22 result illustrating perfectly the turnaround and logical simplification that MM believes is unfolding across the business. However, we believe that the interest rate cycle which has been so supportive of QBE has peaked at least for 2023 leading us to believe there are better places to be invested this side of Christmas. Also, it’s worth noting, the company is holding US treasuries that have fallen in value and could be written down over the coming years.
- We aren’t excited by the risk/reward towards QBE unless it trades back below $14.
MM remains neutral toward QBE around $14.80
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