QBE Insurance Group Limited is an insurance company which underwrites most forms of commercial and industrial insurance policies, as well as individual policies. QBE also manages Lloyds syndicates and provides investment management services. The Company provides its services both domestically and internationally.
QBE dominates the insurance market in Australia and continues to expand and acquire further smaller firms throughout Asia. We believe that when debt becomes a little cheaper that they will probably take over Insurance Australia Group (its major Australian competitor) to a position of near monopoly in Australia.
The stock has recently paid a half-year dividend of 62 cents which represents a yield of around 5.2% per annum with a franking level of 20%. The current share price is approximately $23.50 which is off its 2007 high of around $35.
QBE’s ascendancy in the insurance sector has become even stronger following the financial crisis with their market share increasing. The defensive nature of the stock and diversification of the business ensures that it is well positioned in volatile times.
For further information, or indeed if your would like to discuss the stock in greater depth and how it would fit into your portfolio, please do not hesitate to contact our office on (03) 9830 0366.