QBE +2.22%: the insurance group released a 3Q performance update which further highlighted the tailwinds playing out in the insurance sector. Gross Written Premium (GWP) growth of 7% on the prior period and renewal rate increases of 9.6% in the quarter show the benefit of inflation on premiums. Higher bond yields have also supported investment performance with the running yield at the end of the quarter at 5%, up from 4% at the end of the first half. While claims have climbed with inflation, catastrophe events are expected to be lower in the second half thanks largely to a muted US Hurricane season. As a result, QBE has maintained FY23 guidance and outlook comments, targeting a combined operating ratio of around 94.5% with GWP growth of 10% in constant currency terms.
MM remains neutral to cautiously bullish QBE
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