QBE Insurance (ASX:QBE) set to face AGM shareholder revolt

ASX insurance giant QBE Insurance Group Ltd (ASX: QBE) is set to face a shareholder revolt in May over systemic poor share price performance
The post QBE Insurance (ASX:QBE) set to face AGM shareholder revolt appeared first on The Motley Fool Australia. –

Crowd of angry investors protesting with bullhorn and placards

The QBE Insurance Group Ltd (ASX: QBE) share price is enjoying some time in the sunshine today. QBE shares are up a healthy 2.31% at the time of writing to $9.74 a share. That’s significantly outperforming the broader S&P/ASX 200 Index (ASX: XJO), which is ‘only’ up 0.4% to 7,093 points today.

However, zooming out and the picture is far less rosy for QBE Insurance. This company has been a serial underperformer for years now. QBE is still more than 35% below its pre-COVID highs of ~$15 a share. Additionally, it’s also more than 70% below its all-time high. And that all-time high is from way back in September 2007.

Yes, anyone who has bought QBE shares before 2020 is probably in the red. In fact, it’s conceivable that the vast majority of QBE shareholders, or at least those with less than impeccable luck in market timing, have experienced nothing more than a few percentage points of growth at the very best.

QBE to face the music at AGM

Well, that’s not a recipe for a happy shareholder base. And we are seeing that play out this week. We had news yesterday that the Australian Shareholders’ Association (ASA) will be voting against the QBE remuneration report at its upcoming annual general meeting (AGM). The AGM will take place on Wednesday 5 May.

Here’s some of what ASA company monitor Ian Graves said to justify this move:

The main issues with the company are the financial performance, with an average total shareholder return over the past five years of -2%, and we have concerns the high turnover in senior management is linked to this lacklustre performance.

It’s not just the remuneration report either. The ASA has also lost concern in a number of member of QBE’s board and leadership team:

In addition to voting against the remuneration report, we will vote against the re-election of Mr Stephen Fitzgerald, Deputy Chair of the People and Remuneration Committee after dissatisfaction with the remuneration structure for a number of years. We will also be voting against the re-election of a number of long-serving directors, Sir Brian Pomeroy and Ms Jann Skinner, given that they have been on the QBE board since 2014 and the continuing poor results over a number of years and a range of issues the company is currently dealing with.

Not the first rodeo

This is not the first time QBE has been faced with such a revolt. The insurer faced similar moves in 2018 and 2019, with the company narrowly avoiding a ‘second strike’ in 2019’s AGM.  It also faced shareholder outrage last year when it dismissed its CEO Pat Regan. This was over “workplace communication” incidents that were not entirely made public.

Whatever happens at the AGM next month, we can be sure shareholders will be hoping for a better year ahead than the ones recently gone by.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post QBE Insurance (ASX:QBE) set to face AGM shareholder revolt appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!