More than a billion dollars was wiped off QBE’s market cap this morning after the insurer revealed that its half-year profits were down 37% on poor US performance and low investment yields.
For the 6 months to 30 June, QBE posted a net profit after tax of $US477 million, missing market expectations of $US696 million.
QBE’s share price opened down 8.7% at $15.55 and has since climbed back up to $16.02 – still down 5.93% from yesterday’s close.
Via investing.com, here’s what happened:
Fairfax reports that Citi analyst Nigel Pittaway said QBE shares had done well from factors including the falling AUD but the rally may have been overdone.
QBE has had a rough few years and is currently undergoing a major operational transformation program that will merge a number of processes and systems, and move jobs to cheaper centres like the Phillipines.
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