QBE takes a hit to spread the pain of CV-19. It says it already provisioned for this as part of the foreshadowed $1.5 billion loss. It is, nonetheless, a loss.
New policies will have tighter wording, pandemic cover will be explicitly included or excluded. Insured parties will want cover for a 1 in a 100 year event and will pay for it. Should be a good little earner in the future.
Commenters are muttering about the risk of a cap raise on the other thread. That would really tank the share price. I noted there QBE's modestly increased risk appetite, taken in full expectation of this UK legal decision and with consent of regulators. I read that as QBE having enough capital post-loss to meet its obligations. A reasonable insurance year will restore its fortunes in full - dividends and the share price will follow.
Ash
QBE Price at posting:
$8.08 Sentiment: Buy Disclosure: Held
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