QBE - QBE Insurance Group

[Julia]

In FNArena's Broker Call today several analysts (6 or 7) have come out with a Buy on QBE and a substantially increased target price. There may be some other reason for this increase but I haven't been able to discover it.

Likewise, a similar number of brokers put a Buy on CSL today. I don't hold this but checked it out from curiosity - and it was also up over $3 at time of looking. It's a much more expensive stock though.

Hard to say that what brokers say doesn't matter!

Julia

 

[Sean K]

In FNArena's Broker Call today several analysts (6 or 7) have come out with a Buy on QBE and a substantially increased target price. There may be some other reason for this increase but I haven't been able to discover it.

Likewise, a similar number of brokers put a Buy on CSL today. I don't hold this but checked it out from curiosity - and it was also up over $3 at time of looking. It's a much more expensive stock though.

Hard to say that what brokers say doesn't matter!

Julia

Just saw some news that they had paid $1b for an insurer in the US, a place they are underexposed. Must be a good use of a billion dollars!

 

[swingstar]

You could nearly draw a straight line in the trend since 2001.

 

[theasxgorilla]

http://news.google.com.au/news?hl=en&ned=au&ie=UTF-8&q="qbe"+location:australia

QBE buying into the US market, a la IAG doing similar in the UK...

 

[Julia]

Yes, sorry. I neglected to say that the broker upgrades were as a result of the announcement about the US venture.

Julia

 

[Sean K]

Has anyone seen a better chart than this?

If you had have leveraged into this after 9/11 you'd be.....retired.

Questions were raised about best picks after the correction. You would have to think this has some legs, on any pullback. It's hard to see where it's going to go wrong, except maybe expanding too much. Acquisition after acquisition.....has some risk....

Of course, if they're insuring the next major terrorist target, it'll be in trouble......hurricanes are an issue too.....

(sold in Jan - waiting for dust to settle before I perhaps buy in again)

 

[Halba]

I think QBE has had a bit of good luck in 2006, what happens if weather turns bad? (with global warming etc I wouldn't want to be in insurance!!)

 

[robert toms]

If you judge QBE on its record it has had one bad year in over 100.As you people say there are risks...but they are in the business of making a profit from risk management.When their risk management failed them with the twin towers disaster,they were very contrite and vowed to take measures to improve their management .So far so good...I got some of the $5.50 shares that they offered to holders at the time...not many, but they have been very successful....little fish are sweet

 

[BradK]

QBE - QBE Insurance

Some interesting action on this today. 11,000 shares kept jumping between the buy and sell column.

Managed to pick some up at these prices and feel quite privileged to have done so. Probably the safest stock on the market IMO

Surprised there is not a thread on this one

Cheers
Brad

 

[BradK]

Not a popular stock to discuss, is it?

I think that sub-$31 is good buying, and bought some more at this price...

What do others think? Or is it a concern that it has broken $31 short term support?

Brad

 

[Julia]

Not a popular stock to discuss, is it?

I think that sub-$31 is good buying, and bought some more at this price...

What do others think? Or is it a concern that it has broken $31 short term support?

Brad

No, not popular for discussion at all. I guess this is due to its being a stable blue chip with little speculative activity.

It's one of Australia's best managed companies. Completely agree that sub $31 is good buying at this stage.

Btw, Brad, how is the dog? Recovered from the operation???

Regards
Julia

 

[BradK]

Hi Julia,

Pepper is doing very well. He has had his knee-cap 'popped' back into place' and the big lug is jumping all over our friends kids again

He was walking pretty gingerly after the op for about a week, but is definitely better for it now.

Cheers
Brad

 

[Muschu]

QBE -- whare are they at?

Hi
I've been watching the intraday volatility within QBE with interest. [No they're not alone].
Kohler's Eureka Report a few days ago referred to their outstanding performance over a significant number of years and made a comment [I can't recall the exact wording] that their forthcoming results announcements [late this month I think] should once again be very positive.
I'm reluctant to dive in at this stage but wondered what other views might be out there?
Comments welcome.

 

[robert toms]

I have held this one for nearly ten years...it is the share in my portfolio that I do not worry about.They have diversified globally to reduce their risk.The only hiccup that they have had in many decades was on Sep 11th,Twin Towers...since then they tightened up their risk management considerably....if there is any insurance company that is blue chip...I consider QBE is it.....with my hand shaking...HA HA
When insurance companies strike a little trouble they just increase their premiums!

 

[BradK]

Must be about time to renew my love affair with this one - anything I have missed???

I think that its a great stock

Brad

 

[Sean K]

Must be about time to renew my love affair with this one - anything I have missed???

I think that its a great stock

Brad

I was just looking at it too Brad. Why the 5% sell off? Unusual. Is it about to produce a record result?

 

[BradK]

I was just looking at it too Brad. Why the 5% sell off? Unusual. Is it about to produce a record result?

yes indeed... why the sell off? Its not exposed to that wild weather in Australia is it? more of an exposure to us and uk (although the weather here in the uk has been quite pleasant thank you very much)

Im gonna put in a buy order a few % below the close and see if I can go fishing.

Cheers
Brad

 

[gfresh]

All insurers seem to have suffered.. Is this because they rely on backing their policies from the world bond market? I'm not sure, just wondering if this is why..

 

[dhukka]

The reason Buffet likes insurance companies so much is that you get that 'float' ie people pay premiums but you don't need to pay anything out until someone makes a claim. Thus you have this enormous cashflow or float that you can invest. Insurers earn a lot of their profits from investment income as well as premiums, especially when stockmarkets are doing well. The investment part of their profits probably has fared too well over the last 6 months.

 

[BradK]

Hmmm... getting closer to $27 - why why why?????

Represents excellent value ...

Brad

Dis: I dont hold