What Happened to the QBE Insurance Share Price?
QBE Insurance Group Limited [ASX:QBE] is a general insurer covering most major commercial and personal types of insurance in 46 countries.
The share price closed 5.79% higher on Wednesday.
Why Did This Happen to QBE Shares?
For the past two days, QBE has released financial details, as well capital raising information.
As warned in late July, first half financial details for 2014 were disappointing.
In the six months to June, net profit is down to $392 million. This is a massive 18% lower than the 2013 first half result of $477 million.
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Also, the insurer’s profit margin is down to 7.8%, compared to the same period last year of 10.8%.
The company alerted the market to expect these results as the workers compensation issue in Argentina is completed.
Softening the blow of the financial data was the announcement that QBE will raise US$41.5 billion via debt restructuring and capital raising.
The first step to this was the announcement of a $650 institutional placement.
Next is the $160 million share placement plan.
And finally, they will sell their US underwriting business for $750 million.
What Now for QBE Insurance Group Limited?
It hasn’t been a good 12 months for QBE shareholders.
However, all the bad news may built into the stock price. This means that any positive news for QBE could see investors pile in quickly and the share price rally.
Shae Smith+
Editor, Money Weekend
The post Why the QBE Insurance Share Price Rise Today? appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
