A well-received investor briefing in May, together with a currency tailwind from the falling Australian dollar, drove QBE Insurance Group (ASX:QBE) shares higher in May. After several years of restructuring, QBE is now better positioned to produce reliable profit growth despite the soft premium environment and low interest rates. The insurance book has been materially de-risked, reinsurance restructured to reduce earnings volatility, productivity improvements have been delivered and the balance sheet is much improved (now positioned as equivalent to an S&P AA rating). Further, after many years of shrinking the business, QBE is now in a position to drive growth in its insurance business. The group should also deliver a strong and growing dividend yield over the coming years. (VIEW LINK)
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