QBE Insurance Group

Insurance company, QBE Insurance Group (ASX:QBE) have reported its full year financial results to shareholders and investors on the Australian stock market.

• QBE Insurance Net Profit US$761 million up 8 percent from US$704 million in FY 2011.
• QBE full year insurance profit margin was 8 percent, up from 7.1 percent.

QBE Insurance Group (QBE) is starting the year on a rough phase as it announces the 40-50 per cent decline in profit and 62 per cent in dividend, causing its shareprice to drop to an eight-year low. This follows yesterday's bad news regarding the involvement of the insurance company's subsidiary Balboa in a pricing probe in the US.

Shares of Australian insurance company QBE Insurance Group (QBE) are now on a trading halt after news circulated that its recently bought Balboa mortgage insurance subsidiary in the United States is being investigated by US regulators.

After warning of cuts to its already lowered profit targets, QBE Insurance (ASX:QBE) shares plummeted yesterday to a six month low. The company cited continuing catastrophic events--the worst in 35 years--negatively affecting its bottom line.

Insurance profit margin for 2011 could be under its target of between 15 to 18 percent, but analysts said that the value could be 13 percent.

QBE Insurance (ASX:QBE’s) shares dropped almost 4 percent in over six months after the insurance group cut its profit margin forecast because of catastrophes. Stocks were down by 68 percent at $16.60, the group’s lowest since November last year.

QBE Insurance (ASX:QBE) raises $US1 billion in subordinated debt to maintain its balance sheet and fund its operations to fend off the impact of natural disasters. The company also prepares for insurance renewals in July when costs are bound to soar due to renegotiations.

Internationally renowned insurance company QBE Insurance Group (QBE), which runs businesses in as many as 44 countries is taking necessary steps in response to the growing concern among its investors regarding the possibilities of the company getting exposed to the recent BP oil incident at the Gulf of Mexico claming that the insurer has sufficient reinsurance protection under its belt which will help it to cover any large insurance claim.