Wednesday, March 1, 2017

QBE INSURANCE GROUP LTD (QBE): QBE net profit beat market consensus due to better-than-expected underwriting and claim management. Net investment yield was at 2.4% as investment

QBE INSURANCE GROUP LTD (QBE): QBE net profit beat market consensus due to better-than-expected underwriting and claim management. Net investment yield was at 2.4% as investment portfolio remains defensively positioned for continued global volatility.  QBE financial strength remains robust with solvency ratio at healthy levels at 1.79x up from 1.73x, above S&P’s minimum AA capital requirement of 1.5x. 

Investors who prefer a yield pick-up in exchange for the risk that the bond is written off at point of non-viability, could look at QBE USD 6.75% 2044NC2024 (Tier 2 bond) which is trading at YTW and YTM of 5.26% and 6.01% respectively. We draw comparisons to another Swiss Re Tier 2 bond with similar duration, we think that QBE's paper could be trading around 30bps tighter.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts with Thumbnails