Australia: Macquarie Flags Cyber Insurance Growth; QBE, IAG Shares Rise

Australian insurers QBE Insurance Group and Insurance Australia Group saw their shares climb following a Macquarie analyst report that highlighted significant growth prospects within the cyber insurance market. Macquarie identified cyber insurance as a key driver for future expansion for these companies.

The analysis by Macquarie indicated that cyber insurance premiums currently constitute approximately 1% of the global property, casualty, and liability market. This segment is projected to achieve a 20% compound annual growth rate (CAGR) globally. In Australia and New Zealand, the growth rate for cyber insurance is expected to be even more robust, estimated between 30% and 50%.

In Tuesday’s trading, QBE Insurance Group’s shares rose by 1.3%, reaching a more than four-year high of A$16.03. Insurance Australia Group also experienced a share increase of 0.8%, with its shares trading at A$5.98. This occurred despite the broader benchmark S&P/ASX 200 index recording a 0.1% decline.

Macquarie affirmed its “Outperform” rating for QBE and adjusted its price target for the company upwards from A$16.00 to A$17.20. For Insurance Australia Group, Macquarie maintained an “Underperform” rating. The report underscores the growing importance of the cyber insurance sector as a critical area for expansion for major insurers.

Key Points
* Cyber insurance premiums constitute approximately 1% of the global property, casualty and liability market.
* The global cyber insurance market is forecasted to grow at a 20% compound annual growth rate (CAGR).
* Cyber insurance growth in Australia and New Zealand is projected at around 30% to 50%.
* Shares of QBE Insurance Group were up 1.3%.
* QBE stock reached A$16.03, a more than four-year high.
* Insurance Australia Group shares rose 0.8%.
* IAG shares traded at A$5.98.
* The benchmark S&P/ASX 200 index was down 0.1%.
* Macquarie retained an ‘Outperform’ rating on QBE.
* Macquarie increased its price target for QBE to A$17.20 from A$16.00.
* Macquarie retained an ‘Underperform’ rating on IAG.

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