One big reason not to buy it is QBE's own dominance. After Genworth, QBE probably the biggest insurer of mortgages in Australia.
Whilst Aussies on flexible mortgages have been doing it hard, the effects have been gradual. As the RBA points out itself, its own rate rises are going to force many Aussies coming off fixed mortgages into negative cash flow and inevitably some defaults.
Buyers of QBE here should take a very good look at their provisioning. At least 15% of Aussie fixed mortgage holders are going into negative cash flow shortly. There will be defaults. I know of more than one couple with in excess of $1 million mortgages with combined gross incomes of less than $150K!
Don't shoot the messenger. Just reporting the stats. QBE the 2nd biggest mortgage insurer and plenty of defaults likely in 2023/24 as people roll of fixed mortgages of around 2-3% to 6-7% (I saw as low as 1.89% 3 year fixed in 2020 offered). QBE will be just fine, but a few of the gravy trains it enjoys, not so rewarding in 2023/24.
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