The RBA's 0.5% lift in interest rates adds to the wind in QBE's...

The RBA's 0.5% lift in interest rates adds to the wind in QBE's sails.

QBE's $28 investment portfolio is ~90% in interest bearing assets. While spread globally by currency, all CB's are raising rates. Using the 0.5% as a simple proxy, net interest income would rise $140m.

The emergency low interest rates of recent times have been agony for insurers. QBE has endured this, keeping maturities relatively short and earning a mere 1.52% on the interest bearing portfolio. Rebalancing maturities will be slow work, yet there are encouraging gains ahead.

Looking forward to the 1H release in mid-August. I would hope to see continued premium gains, though at a lesser rate, and at last, some interest income.

The lack of commentary here from other HC contributors suggests limited attention to insurers. Y'all will come to regret this.

Ash