QBE shares fall despite confirming FY outlook
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More news: QBE lowered on the ASX despite reaffirming its full-year outlook and posting a premiums rise during the first half to date.
QBE shares sunk 2% to $17.24 during early trading before regaining ground later in the session. Shares were down 0.4% to $17.52 at 1:20pm AEST.
Jarden analysts maintained their 'buy' rating for QBE and increased their target price on the stock from $20.75 to $21.
However, they flagged that lower premium rises, higher claims inflation and catastrophe bonds, and lower yields remain key risks for the business.
QBE posts premiums rise, confirms full-year outlook
The news: QBE confirmed its full-year outlook, as the insurance group saw growth in gross written premiums rise in the first half.
The numbers: Gross premiums lifted 2% year on year. Group-wide renewal rate rose 7.3%, in line with expectations, reflecting reduced rate increases across certain property and reinsurance lines compared to the prior corresponding period.
Excluding rate increases, premiums declined 2% on a reported and constant currency due to lower crop premiums, combined with property portfolio exits in North American and Australia.
Supportive interest rates, alongside favourable returns in QBE's risk asset portfolio, supported investment income of over $400 million for the first half to date. Meanwhile, total investment funds under management grew to $30.3 billion compared to $30.1 billion in FY23.
The context: QBE confirmed its full-year outlook and reiterated its expectations for constant gross written premium growth in the "mid-single digits", with premium rate increases expected to remain supportive.
The company also noted that non-executive directors Jann Skinner and Brian Pomeroy will retire from its board today, replaced by Penny James, Steve Ferguson and Peter Wilson.
QBE said it will release its first-half result on 9 August.
The sources: ASX announcement, ASX announcement
