QBE Insurance

QBE Insurance Group Limited is one of the top 25 insurers and reinsurers worldwide with operations in all key global insurance markets. QBE is an Australian listed company and has operations in 47 countries with over 13,000 staff worldwide.

Ethical Update

November 2010

QBE is a signatory to the Carbon Disclosure Project ("CDP"), the largest investor coalition in the world, accounting for more than 475 signatories with a combined asset base of $55 trillion.

Each year the CDP secretariat issues a questionnaire to the world's largest companies by market capitalisation, to identify the views of company management on the risks and opportunities associated with climate change, an assessment of greenhouse gas emissions, accounting and corporate governance, with regards to climate change.

QBE is a signatory to the insurance industry’s 'Statement of Environmental Commitment' and has an advanced 'Code of Ethics' and 'Code of Conduct', and anti-discrimination and sexual harassment policies in place. (Source: Ethical Investor)

Ethical Investor Ratings

QBE has been rated 3 out of 5 stars for environmental policies and 4 out of 5 stars for both its social and governance practises by Ethical Investor.

Financial Update

QBE has been one of the best run insurance companies over the past 20 years. According to Morningstar, QBE is ‘one of the best managed insurance groups in the global general insurance and reinsurance industry. An enviable track record of strong earnings with a minor blemish following the events of September 11, 2001 is testament to a first class business model and conservatism.’

Extensive risk management is in place to protect all stakeholders and diversification is used to reduce the overall risk profile by spreading exposures by product and geography.

A growth strategy based on the combination of organic growth and insightful acquisitions has and should deliver well above average growth in earnings and dividends. QBE is an excellent stock for inclusion in long term growth portfolios. Morningstar, our research house, is recommending buying the share under $21.15.

Chief executive Frank O’Halloran has recently said the company is pleased with the growth and insurance profitability of its businesses around the world, and with its outperformance of most of its peers.

Real returns could be just around the corner, as an expected profit of $US1.65 billion is anticipated in 2011, as a result of rising premium income and improved investment returns.

Estimated Dividend Yield: 7.3%

Franking: 20%

1 Year Performance: -16%

3 Year Performance: 3.3%

Last Price (2 November 2010): $17.46

Fair Value:  $26.40

Financial figures are as at 3 November 2010 and are subject to change (Source: Morningstar).

Disclaimer

The contents of this article are intended as general advice only.  No specific person’s circumstances, financial situation or objectives have been taken into consideration.  You should not act on the information provided without seeking personal advice from an appropriately qualified financial planner.   While the source has been verified as reliable, the actual content has not been checked for accuracy.  Consequently Ethical Investment Advisers does not warrant the accuracy of the information nor accept liability for any errors in the data.