2235 GMT - A brighter outlook for investment income leads Jefferies to lift its earnings per share forecasts for Australian general insurers in FY 2025 and FY 2026. Uncertainty over the timing of U.S. interest rate cuts means bond yields are likely to stay higher for longer, analysts Simon Fitzgerald and William Richardson say in a note. "Increases in bond yields, particularly since March 2024 are likely to have improved running yields for the GIs," it adds. Jefferies sees insurers should also benefit as recent premium rate hikes start to earn-through, and maintains a positive view on the sector. (alice.uribe@wsj.com)
(END) Dow Jones Newswires
April 28, 2024 18:35 ET (22:35 GMT)
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