Australian Insurance: Jun-26 Mark-to-market: Insurers & Brokers

Research evidence excerpt

Australian Insurance: Jun-26 Mark-to-market: Insurers & Brokers

Global Research

23 July 2026ab

Australian Insurance Equities

AustraliaJun-26 Mark-to-market: Insurers & Brokers

Diversified Financial

Kieren Chidgey

Domestic GIs preferred across our Insurance & Broker coverage universe Analyst

FY26E mark-to-market (MTM) EPS revisions across our insurance coverage are mostly kieren.chidgey@ubs.com

neutral to positive with a quieter June quarter for CATs assisting GIs and stronger +61-2-9324 2820

investment income reflecting improved equity and fixed income returns. Across insurers, Shreyas Patel, FIAA

we prefer domestic GI exposures reflecting still solid rate momentum in Australian Home Analyst

& Motor relative to Commercial classes, (2) earnings tailwinds from rising bond yields, shreyas-k.patel@ubs.com

and (3) potential FY27E EPS upside risk if an intensifying El Nino drives lower short-term +61-2-9324 2821

CATs. IAG remains our top pick due to strategic flexibility enabled by margin upside from Fraser Noye

RI profit commissions, expense improvements and RACQ uplift. Elsewhere, we see Analyst

strong medium-term value in brokers (AUB/SDF) despite a cyclically soft commercial rate fraser.noye@ubs.com

backdrop, though we remain cautious on the PHIs affordability indicators and political +61-2-9324 3353

scrutiny suggest risk of a more challenging backdrop ahead. Zoey Chen

Associate Analyst

Jun-Qtr investment returns stronger across the board zoey.chen@ubs.com

+61-2-9324 3496

Investment returns were stronger across the board over the quarter with equity markets

higher and fixed income supported by lower risk-free rates and tightening credit

spreads. Across equities, offshore markets (MSCI World +13.3%, S&P500 +15.2% and