According to Citi, QBE Insurance (ASX:QBE) continues to lead amongst insurance companies in Australia and New Zealand, based on a ‘conservative’ combined operating ratio (COR) estimate for fiscal year 2024 (FY24).

The brokerage firm is foreseeing additional growth for QBE, anticipating a FY24 COR of 92.8%, lower than the insurer’s own estimate of 93.5%, backed by a strong catastrophe budget.

Citi identifies a surge in gross written premiums (GWP) for Insurance Australia (ASX:IAG) and Suncorp (ASX:SUN), projecting that their margins will be boosted by current premium rate raises and sustained assistance from investment yields.

The firm also clearly expressed its preference for IAG over SUN at existing prices.

In accordance with the last recorded close, QBE experienced a 16.9% increase year-to-date (YTD), while IAG and SUN witnessed gains of 9.9% and 13.9% respectively during 2024.

QBE Insurance (ASX:QBE) is a leading insurance provider, predominantly active in Australia and New Zealand.