** Analysts at Citi note increased market uncertainty post-reporting season in Australia but see favourable conditions in general insurance persisting longer than in previous cycles
** Brokerage rates QBE Insurance QBE.AX and Insurance Australia IAG.AX as "buy" and Suncorp SUN.AX as "neutral"
** Citi flags QBE as the sector's top pick, with potential to outperform 92.5% forecast in FY25, if key improvements materialize; says share buy-back is also possible
** Prefers IAG over SUN, citing margin strength and valuation premium justification; both expected to deliver margins at the top end of FY projected ranges in 2H25
** Rates Medibank MPL.AX "neutral" despite a strong profitability forecast over the next 18 months, citing cautious stance on government policy impact; sees rate rises above claims and inflation supporting margins
** Adds NIB Holdings NHF.AX is projected to meet the 3% to 4% policyholder growth projection for FY25 despite margin uncertainty beyond 2H
** QBE, IAG, MPL and NHF are all positioned for solid near-term performance, but regulatory risks remain a watchpoint - brokerage
(Reporting by Rishav Chatterjee in Bengaluru)
((Rishav.Chatterjee@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.