QBE Insurance Group Ltd

QBE: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$18.00	Zbwf	Ytyphwjm

QBE’s 2020 Result Was Weak, but Higher Premiums Provide a Good Starting Point for 2021

Nathan Zaia

Feb 19, 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.

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