ASX-listed insurance giant QBE Insurance Group Limited (AU:QBE) announced its predicted numbers before it reports its half-yearly earnings for 2023 this week. Analysts believe the upward trend in the company’s share price will continue, well supported by higher interest rates and improved premiums. The stock has been trading at its high point for the last five years and has gained 37.8% in the last 12 months.
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Based in Australia, QBE is a global insurance and reinsurance firm with operations spanning in 27 countries. The company offers an extensive array of insurance services, encompassing personal, commercial, vehicle, home, and various other coverage options.
Half-Year Estimates
The company will announce its half-year and second-quarter earnings for 2023 this week on August 10. According to TipRanks, analysts expect Q2 earnings to be AU$0.5 per share, down from AU$0.11 reported in the same period a year ago.
Recently, the company released an update for its first-half results with forecast numbers. The company’s gross written premium has experienced growth of 13%. It is anticipated that there will be an approximately 10% increase in premium rates across the entire group in both the first half of 2023 and the second quarter of 2023. The gross written premium is expected to be $12.8 billion, while the net insurance revenue is projected to be around $7.9 billion.
The total investment income during this period is expected to be around $660 million, driven by higher interest rates, which pushed the fixed-income returns.
Moving on to the costs, QBE anticipates net catastrophe costs for the first half of 2023 to be near $700 million. This was mainly due to storms in North America in June, which added further strain to catastrophe expenses, surpassing the previous estimates.
Considering these numbers, the company has also confirmed its full-year outlook for 2023. The company maintained its anticipation of achieving a constant currency gross written premium growth of 10% for the fiscal year 2023.
Is QBE Stock a Good Buy?
Six days ago, Morgan Stanley analyst Andrei Stadnik confirmed his Buy recommendation on the stock, forecasting an upside of 16% in the price.
According to TipRanks’ consensus forecast, QBE stock has a Strong Buy rating based on nine Buy versus one Sell recommendations.
At an average target price of AU$17.33, analysts suggest a growth of 10.44% on the current price.
