Gross written premium growth of 10% exceeded Ord Minnett's forecasts in the March quarter. QBE Insurance has lifted guidance for the full year to 10%.

The broker notes rising cash rates are finally delivering better returns on the investment pool and the insurer should be well able to meet forecasts of around US$1.3bn in investment income, implying a return of around 4.5%.

Given that around 90% of the portfolio is fixed income, Ord Minnett is reassured by management commentary that no fall-out from the banking turmoil in the US and Europe has occurred. Lighten rating and $13 target maintained.

Sector: Insurance.

Target price is $13.00.Current Price is $14.61. Difference: ($1.61) - (brackets indicate current price is over target). If QBE meets the Ord Minnett target it will return approximately -12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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