Morgan Stanley believes QBE Insurance can improve its 2021 combined operating ratio by around five percentage points versus 2018, as premium rate increases are accelerating well ahead of claims inflation.
QBE is considered best placed of the general insurers in this regard, given strong global pricing momentum and self help.
Overweight rating maintained. Target is $15.50. Industry view is In-Line.
Target price is $15.50.Current Price is $11.64. Difference: $3.86 – (brackets indicate current price is over target). If QBE meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).