qbe share price, page-7

Hi IWS,

You wrote:

'Who gives a stuff about yield? I'd much prefer them to
keep the cash and use it for expansion.'

I find this to be a strange reply and one that explains many of the problems with QBE in particular and the market in general.

QBE has been trying to expand a great in the last several years (under the previous CEO). We know now that a lot of those expansions have cost the shareholders dearly in terms of wasted capital, poor return on equity, an business that was not managed properly and exposure to additonal risks (both nature and regulatory).

Given that I'd far rather that they now 'sweat' the current businesses they have and engage on far more prudent capital management. Part of this would be returning funds to shareholders (buybacks or dividends, with dividends being better). Thankfully the CEO does not appear to be a cowboy.

Finally you have to understand that ultimately the share price of QBE will depend on it's return to shareholders that will be largely dividend driven (especially in this market). The share price is suffering now because QBE has provided a terrible return to shareholders over the past 4 years hence it is at SUB GFC LOWS whereas most other insurers and banks are approaching all time highs.

I am happy for new management to shore up QBE's capital position but I would hope and expect that they start to focus on shareholder return as soon as possible. And in this market that means dividends.

Cheers

Twinsen