Ann: QBE December 2020 Market Update Presentation, page-2

Good.

Before y'all accuse me of gilding a turd, understand what I mean. QBE has raised premiums 9%, more than enough to make an underwriting profit.

Six weeks ago, I observed:

"Insurers will make nil on invested funds. All returns are from premium. Insurers need to see this practical reality and raise premiums or go out of business.

"So I expect QBE to show lower revenues and a higher rate schedule this HY as they stand back from writing insurance at a loss. If they are not, I will exit.

https://hotcopper.com.au/posts/48717475/single

Yes, there is a big loss here. We will see other insurers' capital bases erased - this is the nature of insurance.

QBE will trade lower, but it will survive and later flourish. I will buy more after the fall.

Ash