Horrors continue for insurance giant QBE

O

Ouch

Active Member
Michael West said:
It was a horror week for QBE: $6 billion wiped from its market worth, another large earnings downgrade and a chairman going.

There is something else of concern, however something that has yet to be touched upon in the furore enveloping the insurance giant. Interred in the final footnote to QBE's annual accounts, ''guarantees and contingent liabilities'', are two items: a $US1.36 billion ($1.51 billion) letter of credit and a $US1.94 billion letter of credit.

The first is ''in support of the group's participation in Lloyd's'' of London; the second ''in support of insurance provisions of controlled entities''.

Already, QBE's thin levels of reserving have become a critical focus of market concern. Though how fragile is the overall QBE edifice? How would it withstand a barrage of big insurance claims?
Click to expand...

More at: http://www.smh.com.au/business/comm...e-for-insurance-giant-qbe-20131215-2zf9u.html
 
Queensland Book Exchange!? :P

But seriously, I'm always sceptical about these corporate loss figures. They often sound like someone's been overly optimistic about the appraisal.

Like the guy that tries to sell his car for $20,000 but only gets $15,000 and says he's "lost" $5000. Nah mate... it was never 'worth' that in the first place. :cool:
 
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