QBE Shares Are Up On News That It Will Save More Than Expected From Moving 700 Jobs To Manila

QBE shares have rallied 3.2% on news that its three-year cost cutting drive will deliver $US90m more in savings at $US20m less cost.

QBE was trading at $15.79 just before 1pm.

Michael Bennet of The Australian reports that the $250m savings target, which was unveiled in February, did not include $US90m in global claims procurement benefits.

The added savings has boosted Deutsche Bank analyst Kieren Chidgey’s 2016 net profit estimate by 3%, the Aus reports.

QBE also told investors that the project – under which it will move about 700 Australian jobs to Manila – would cost it $US156m this year, $US140m next year and $US14m in 2015.

That means in total, the project will cost $20m less than originally forecast.

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