Macquarie downgrades QBE as NSW floods push up catastrophe claims
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The news: Macquarie has downgraded its rating on QBE Insurance on expectations that the insurer's catastrophe claims will outstrip its half-year allowance as it enters "peak catastrophe season".
The numbers: Macquarie lowered its rating on QBE from 'outperform' to 'neutral' but left its target price unchanged at $23. QBE last closed at $23.44.
Macquarie analysts expect QBE's half-year catastrophe claims to reach $575 million, given recent floods in northern NSW, higher than the company's allowance of $549 million.
The analysts also flagged that QBE shares are currently trading at a 15.7% premium to international peers, having climbed around 38% over the last 12 months.
The source: Macquarie research
