QBE has been an excellent recent performer, more than doubling from its COVID-19 lows for reasons mentioned earlier. Plus, importantly, the business continues to turn itself around from an operational perspective as it simplifies and focuses on its areas of strength. This is one insurer that we remain optimistic towards, believing it can improve underlying margins, which will translate into strong FY24-25 results; hence, we believe the stock is cheap, trading below 8x PE compared to a global peer average PE currently at 11x.
- QBE remains our preferred pick in the sector, but we can see it back ~$14 through 2024.
MM is neutral to cautiously bullish on QBE
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