QBE shares: the entry point

Instead of attempting to arise the debacle of how QBE shares are absolutely ‘premium-grade’ value-investing, I would like to introduce Frank O’Halloran, the CEO of QBE, who started in the company in the mid-seventies as a financial controller (which we can believe that knows it’s financial operations from the inside-out).

source: http://www.insurancenews.com.au

Hall of Fame induction for QBE supremo

1 February 2010

QBE Chief Executive Frank O’Halloran has received the highest international recognition of an insurance executive – induction into the Insurance Hall of Fame.

Mr O’Halloran’s work in crafting QBE into one of the world’s top insurance companies, with a market capitalisation of $US22.5 billion ($25.1 billion), was described by the International Insurance Society President Michael Morrissey as “nothing short of remarkable”.

QBE has made more than 125 acquisitions in 20 years under Mr O’Halloran’s leadership, is represented in 45 countries and derives more than 75% of its income from outside Australia.

Mr O’Halloran will be officially inducted into the Insurance Hall of Fame in Madrid on June 7.

 

QBE’s share price was re-adjusted in Australia after the company’s results release a few weeks ago. The profits were below the expected considering QBE’s quality and performance. But the numbers were still good. If those were the results from AMP or another insurance operator, the analysts would consider that they outperformed.

The share is trading at $20.96 today (21st March 10) and it is considered very cheap. For a medium/long term perspective, these prices tent to increase due to strong management, the increased demand for insurance services, the company acquisitions (QBE has formally lodged its interest in acquiring the commercial insurance operations of Dutch financial services group ING Groep).

Frank O’Halloran told the WSJ the group had A$2.5 billion available to fund the acquisition. This would certainly boost the prices as well.

If you have time, check the performance of this stock in depth. It is a good chance for yielding dividends and capital appreciation.

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