QBE Insurance (QBE) Shares Recommendation

JP Morgan has rated the QBE Insurance (QBE) stock as Neutral. The broker completed some dividend calculations which suggests a 90c dividend over the 80c dividend that the market has in mind The broker suggests the dividend could be higher. An the other hand ABN Amro sees an opportunity to buy into this company seeing that it is not expensive and the fact that having hurricanes could be more of an opportunity than a threat:

QBE is trading on 12.9x rolling one year forward consensus, which is around where it has been since 9/11. In a defensive market QBE’s low and stable P/E exposes it to little risk of further derating.

Historically, premium increases on the back of active hurricane seasons have actually
increased insurance margins for QBE. This is largely thanks to their excellent risk management
track record and claims reserve > A$1.4bn.

QBE Insurance Limited is listed on the Australian Stock Exchange (ASX) under stock code QBE. You can view their investor website here. QBE underwrites general and reinsurance risks, investment management and management of the economic entity's share of the NSW and Victorian workers' compensation scheme. Macquarie Research Equities had previously had an Outperform recommendation for QBE. Check your charts!