Blue Chip Shares ASX:QBE
QBE Insurance Group (QBE) is one of Australia’s blue chip shares. QBE is a leading provider of general insurance and reinsurance services in Australia, the Pacific, Asia, the Americas and Europe.
The company is Australias largest insurer, and one of the top 25 insurers worldwide.
It has offices in 45 countries, and offers a range of retail and wholesale insurance products, across a gamut of insurance lines.
Though QBE faced financial sector pressure over the global economic downturn, the company was able to regroup somewhat in 2009 on overall global economic bullishness.
However, QBEs stock has fallen in 2010 on a tough time for global insurers. The company recently reported below-expectations FY09 results, with profit up only 6% to $1.97 billion.
QBEs new downgraded 1H10 outlook is disappointing and foreshadows a tough time for global insurers in the coming year.
The company has forecast 1H10 net profit to fall around 40% on-year and has downgraded its insurance margin guidance to 15.7% in the half, below the prior years half result.
Looking ahead, QBE forecasts continuing difficult conditions for the global insurance industry in 2010.
The company looks cheap on fundamentals, which should make it attractive for investors with a long term view; however we expect QBE to continue to face margin pressure in the near term.
The share price for ASX:QBE has dwindled down from above $25.00 to around $16.50.
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