After a strong run of earnings growth, the insurance sector is no longer the bargain it once was. With risks mounting, analysts say investors need to be selective.
Filip Tortevski, Wealth Within: “Hold and watch for buying opportunities.”
“Right now, broadly speaking, Australian insurance stocks are a hold. However, this may change to buy as the economy picks up. That said, it is about stock selection and, like GDG, there are diamonds just waiting to be found.”
Anthony Golowenko, MLC Asset Management: “Selectively accumulate.”
“We see QBE, Suncorp and Medibank Private as preferred insurance sector holdings,” he says. “Among the broader financials, these companies offer less demanding valuations, solid gross dividends and constructive profitability and growth outlook. We’re likely to be selectively adding to positions, making this perhaps a ‘selectively…