QBE - QBE Insurance Group

[Sean K]

Insurers and funds managers were slapped down along with the other financials. Difference has been the spring back in the banks while these have bounced a little then just tracked sideways. There's not much faith in a sustained recovery, or they just weren't sold off as much? Dunno.

RBS has raised them to a buy for some reason.

Brokers haven't got much right recently though.


QBE - RBS Australia rates the stock as Buy
BY BROKER NEWS - 03/08/2009

The group has acquired Elders Insurance and the broker estimates the deal will be slightly EPS accretive by 2010.

In its view the current environment will mean further opportunities for the company and so the broker retains its Buy rating, supported by a modest increase in price target. Sector: Insurance.

Target price is $25.12.Current Price is $19.50. Difference: $5.62 - (brackets indicate current price is over target). If QBE meets the RBS Australia target it will return approximately 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

 

[rcm617]

How come QBE is still hovering around $20? The rest of the market, and the banks have all been rising.. any thoughts on this?

Could be the rising $A. QBE earns the greater part of its business from overseas so any rise in the $A will decrease its earnings.

 

[doctorj]

QBE is quite interesting, particularly over the long term. I like their strategy of not rolling out their brand across their acquisitions and instead look to bring expertise, systems and support to existing strong brands.

Apparently they're looking at potential acquisitions across central and eastern europe at the moment to drive a significant increase the GWP from this region - it could be a decent play on recovery from the GFC over the next few years [strong aud to fund acquisitions, currencies in CEE expected to strengthen in future, increasing insurance penetration in these markets, return of bancassurance etc]

 

[thierry]

Thanks for the thoughts/comments... its up 30c (1.5%) in early trade.. while the rest of the ASX200 is relatively flat..

I missed the banks run up.. so i'm looking at lower-risk alternatives.

 

[thierry]

great results, and given the poor results of IAG, is the reason I think it is up again today.

Any thoughts on if this is now in breakout territory? And I would like some advice as to how to position my stops as the SP changes?

I bought in at 19.95, and i'm up 15%. I'm aiming for a profit of 10%+ but would like to ride it as long as possible.

 

[airpoe]

great results, and given the poor results of IAG, is the reason I think it is up again today.

Any thoughts on if this is now in breakout territory? And I would like some advice as to how to position my stops as the SP changes?

I bought in at 19.95, and i'm up 15%. I'm aiming for a profit of 10%+ but would like to ride it as long as possible.

I got in @ $19, will probably hold as its a quality stock that would unlike see this price, unless anything major happens.

Its paying 62c dividend & increased it profit by 20% this year, just hold nothing to worry about.

 

[thierry]

yes the dividend is good..so will prob hold it. i'm curious to know what the long term price target is on the stock though. Will be interesting to see what happens to it ex div 2morrow.

 

[mrluva]

Can anyone pls help me with QBE latest announcement. I dont understand if I need to do anything to participate??and what was that closed on 19August?I didn't even know about any of that.
I own 200 shares. Bought this monday. Had old shares before which i mistakenly sold last friday. QBE price is dropping today for whatever reason.
Here's a copy of announcement:

2009 Interim Dividend – Closing Date for participation in the Dividend Reinvestment Plan
I refer to our letter dated 21 August 2009.
As with the 2008 final dividend, the closing date for participation in the Dividend Reinvestment
Plan in relation to the 2009 interim dividend is Tuesday, 1 September 2009. Shareholders who
wish to participate should lodge their applications by 5.00pm (Sydney time) that day.
This date is also the record date for calculating entitlements under the 2009 interim dividend.
I confirm participation in the Bonus Share Plan closed on 19 August 2009 for the 2009
interim dividend.

 

[thierry]

sorry missed participating in the Bonus Share Scheme, so haven't looked into it much. I take my div's as cash to make tax time easier.

 

[johannlo]

Mate it dropped because it went ex div LOL

Definitely one to keep in the bottom drawer. If you're a trader I'd go elsewhere but solid company, great results and will continue to do so (look at their margins, they're insane).

Disappointing to have lagged in the recent rally but I doubt we'll be complaining in a couple of years time (who invests in blue chips anyway to get rich quick)

 

[mrluva]

QBE regained its grounds again. Looking strong. keeping it for long term. Thanx for reply guys but I still don't understand when was this bonus share plan open and do I need to apply to participate now for dividend?If you take cash, dont you have to pay maximum tax on it?

 

[Julia]

, just hold nothing to worry about.

What's your basis for such a assured statement?

 

[alter1217]

I sold some resource stocks to buy QBE in early august at $19.8, in anticipation of a correction which still hasn't come.

Thought I screwed up this time. Anyways, I held on to QBE as it rose almost 20% over the period (excluding the dividend)... Today it's past $23.5. Sure, not as good as the banks, but I'm still rather happy about it.

I might just keep QBE in my bottom drawer. It's still got a (really) good P/E of ~12.

 

[thierry]

QBE seems to be consolidating in the 23-24 mark.. however with the USD losing value against the AUD it could affect QBE earnings. A previous post said QBE dervives a lot of its earnings from OS.. Have there any more recent broker reports on QBE?

 

[White_Knight]

I believe QBE is a good medium-long term yield stock to hold - effectively youre hedging against AUD weakness (i.e commodity strength) since they earn so much offshore. Good way of balancing your portfolio holding of resource stocks.

 

[johenmo]

Is QBE looking at IAG again? Just read a comment on this elsewhere but haven't seen it anywhere else. Disc - I hold QBE.

 

[ers_6]

recent profit downgrades, solid company! historically low price!
Clearly 2010 tough year, will they be back.

buy? I am!....

 

[Chief Wigam]

Yep - we bought some at 18.65 a couple of weeks ago.

i reckon it'll hold out pretty well next week with the market getting in the US dropping on Friday as I reckon it's near a short term low

 

[brty]

i reckon it'll hold out pretty well next week with the market getting in the US dropping on Friday as I reckon it's near a short term low

You reckon...

Any possibility of sharing why??

Is it because you bought it therefore it should go up??

brty

 

[oldblue]

There's a few good reasons why it might go up.

- Well managed company. Pick of the insurers.

- SP in a (very) short term uptrend. Good chance that it has bottomed.

- Relative Strength indicator is positive.

Enough for me to be keeping a close eye on QBE.

Disc: Not holding.