The S&P/ASX 200 Index (ASX: XJO) is up 0.5% today, with one ASX 200 stock just roaring to new 14-year highs.
The company in question is QBE Insurance Group Ltd (ASX: QBE), which now commands a market cap of $30.9 billion.
The ASX 200 stock closed yesterday at $19.76 a share. In late morning trade on Wednesday, shares are changing hands for $20.00 apiece, up 1.2%, having earlier traded as high as $20.10 each.
As you can see on the chart below, you'd have to go all the way back to May 2010 to find QBE shares trading at higher levels.
Atop the climbing share price, QBE stock also trades on a partly franked trailing dividend yield of 3.6%.
Investor interest looks to have been spurred by the company's trading update, released yesterday. QBE shares closed up 2.2% on the day.
The update also caught the attention of several analysts.
As The Australian reported, Macquarie raised its price target for the ASX 200 stock by 2% to $21.30 a share. That represents 6.5% potential upside from current levels.
So, why the upgrade?
ASX 200 stock hits multi-year highs amid positive sentiment
The QBE share price is leaping to 14-year highs on its second day of gains.
The positive momentum got a boost when management reported yesterday that the ASX 200 stock achieved 2% year-on-year gross written premium (GWP) growth of 2% for the nine months to 30 September, on both a reported and constant currency basis.
This was driven by group-wide renewal premium rate increases of 5.9% over the first three quarters of 2024.
Investors also will have noted that the company has already weathered what it labelled "an active hurricane season and a number of notable secondary perils over recent months".
This led to a spike in catastrophe claims for its North American segment.
As we reported yesterday, however, the second half is shaping up better:
QBE expects a calmer second half for catastrophe experience, with its net cost of catastrophe claims in the four months to October coming in at around $425 million. The company's 2H 2024 catastrophe allowance is $671 million.
The ASX 200 stock also looks to have gotten some support with its guidance.
Reiterating its full-year outlook, management said it expected QBE would achieve constant currency GWP growth of around 3%.
The insurance company's FY 2024 combined operating ratio is forecast to come in at around 93.5%.
