Why the QBE (ASX:QBE) share price is down today

The QBE Insurance Group Ltd (ASX: QBE) share price has started this morning’s session firmly in the red. QBE shares…
The post Why the QBE (ASX:QBE) share price is down today appeared first on The Motley Fool Australia. –

The QBE Insurance Group Ltd (ASX: QBE) share price has started this morning’s session firmly in the red.

QBE shares have faced downward pressure following announcements on 2 July the company is facing a representative proceeding from Strand Fitness Pty Ltd “and others”.

At the time of writing, the QBE share price is down 2.67%, after hitting an intraday high of $10.52. It has since pulled back to the current price of $10.40.

Let’s take a look at what is behind these downside moves on QBE’s share chart.

Advised of representative proceedings – so what?

The proceedings mentioned each make allegations against QBE on wrongfully denying cover to various policy-holders during the COVID-19 lockdown(s), for “losses arising from business interruption”.

According to QBE:

The issues raised in these proceedings appear to be substantially similar to those currently before the Australian courts in the second industry test case and QIA’s own Federal Court proceeding against Educational World Travel in liquidation and its liquidator.

The company also mentions that it is satisfied in denying business interruption claims and that it believes its decision to reserve the claims is robust.

“The allegations will be defended” state QBE in the release.

The QBE share price has had a volatile 12 months, firstly after former chief executive Pat Regan was dismissed in unclear circumstances back in September last year.

The Australian Shareholders Association also voted against the company’s remuneration report at its annual general meeting that occurred on May 5.

Since then, Australia’s second largest international insurer has appointed Andrew Horton as Group chief executive, whilst announcing Sue Houghton to the post of chief executive of its Australia & Pacific (AUSPAC) division.

QBE shares have climbed from lows of $8.03 to today’s market value, following these 2 events.

QBE share price snapshot

The QBE share price has posted a year to date return of around 22%, ahead of the previous 12 months’ return of 11%.

These gains have slightly outpaced the S&P / ASX 200 Index (ASX: XJO)’s year to date and 12 month return of 9.8% and 21.5% respectively.

The QBE share price has finished the last 5 trading days 3% in the red, extending the time in the red over the previous 1 month.

The post Why the QBE (ASX:QBE) share price is down today appeared first on The Motley Fool Australia.

Should you invest $1,000 in QBE Insurance right now?

Before you consider QBE Insurance, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and QBE Insurance wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 up, Westpac caught in potential fraud, RPMGlobal rises

Why BWX, IPH, Novatti, & QBE shares are dropping

5 outperforming ASX dividend shares unmasked

Investors warn ASX 200 boards to stamp out sexual harassment

What I regret about my Afterpay (ASX:APT) shares: analyst

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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!