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S&P/ASX 200 (INDEXASX:XJO) down: QBE Insurance Group (ASX:QBE) rallies on good guidance

Here’s today’s The Match Out report from Market Matters’ James Gerrish. Key point: the S&P/ASX 200 (INDEXASX: XJO) finished down -0.76% to 6,987.60.

Markets @ MiddayListen here at lunchtime or find all Market Matters Podcasts on Spotify.

A poor session to kick off the new trading week with the ASX seeing the best of it early before broad-based selling took hold, pushing the main board ~70pts below the early highs, as ~65% of stocks lost ground.

  • The ASX 200 finished down -53pts/ -0.75% to 6987
  • The IT (+0.45%) was the only cohort to finish higher.
  • Property (-1.34%), Consumer Discretionary (-1.26%) and Materials (-1.13%) were weak.
  • QBE Insurance Group Ltd (ASX: QBE) +2.22% rallied after saying it expects gross written premium growth of around 10% for FY23 (they are a Dec year-end).
  • IGO Ltd (ASX: IGO) -3.32% fell after they defended the decision to appoint Ivan Vella as CEO after Rio Tinto Ltd (ASX: RIO) sacked him a fortnight ago.
  • Adore Beauty Group Ltd (ASX: ABY) +19.25% rallied after its board rejected a cash offer of $1.25 to $1.30/sh from UK-based THG – both companies are online-facing beauty product retailers. Stock closed today at $1.115.
  • Healius Ltd (ASX: HLS) +2.31% rallied on news the Chair will not stand for re-election.
  • Catapult Group International Ltd (ASX: CAT) +11.89% had a great session, finally gaining the traction it deserved on their 1H result a couple of weeks ago – a stock we own in the Emerging Companies Portfolio.
  • Telstra Group Ltd (ASX: TLS) -0.53% is back testing lows at $3.76 – looks interesting, we covered it recently.
  • Another defensive name we like here is APA Group (APA) –you can read our recent thoughts here
  • Putting together some thoughts for a Market Matters Event this week- since the day the US 10-year yield hit its low at 0.5% on the 4th Aug 2020, our Active Growth Portfolio has outperformed by more than 4% pa, returning 13.8% pa since 4th August 2020.
  • Active seems to have the wood on passive as conditions toughen.
  • Iron ore fell, futures down 1.3% in Singapore to $US132/mt – Fortescue Ltd (ASX: FMG) -2.08% the weakest of the majors, BHP Group Ltd (ASX: BHP) -1.46%.
  • Gold pushed higher, now trading US$2013/oz at our close. Evolution Mining Ltd (ASX: EVN) +1.9% and Northern Star Resources Ltd (ASX: NST) +1.65% are the two sticks we hold in the Growth Portfolio.
  • Asian stocks were down, Hong Kong -0.87%, Japan -0.40% and China -0.70%.
  • US Futures weaker, S&P 500 (INDEXSP: .INX) -0.33%, Nasdaq Composite (INDEXNASDAQ: .IXIC) -0.49%



QBE Insurance (QBE) $15.64

QBE +2.22%: the insurance group released a 3Q performance update which further highlighted the tailwinds playing out in the insurance sector.

Gross Written Premium (GWP) growth of 7% on the prior period and renewal rate increases of 9.6% in the quarter show the benefit of inflation on premiums.

Higher bond yields have also supported investment performance with the running yield at the end of the quarter at 5%, up from 4% at the end of the first half.

While claims have climbed with inflation, catastrophe events are expected to be lower in the second half thanks largely to a muted US Hurricane season.

As a result, QBE has maintained FY23 guidance and outlook comments, targeting a combined operating ratio of around 94.5% with GWP growth of 10% in constant currency terms.

QBE Insurance (QBE)

Broker Moves

  • Chrysos Corporation Ltd (ASX: C79) Rated New Buy at Bell Potter; PT A$8.70
  • Computershare Ltd (ASX: CPU) Reinstated Buy at Goldman Sachs Group Inc (NYSE: GS); PT A$27
  • Karoon Energy Ltd (ASX: KAR) Rated New Overweight at JPMorgan Chase & Co (NYSE: JPM); PT A$2.75
  • Clover Corporation Ltd (ASX: CLV) Rated New Outperform at Taylor Collison

Major Movers Today

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

*Active Income Portfolio FY 23 of 15.36% achieved between 01/07/22 to 30/06/23.

At the time of publishing, the author or their clients may have a financial interest in some of companies or securities mentioned.

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