Sigh, only bothering to write this coz i am on leave and...

Sigh, only bothering to write this coz i am on leave and bored.

QBE has 1.9 billions in cash , 28 billions in investment. It also has 20.7 billions in claims expense and 9 billions in unearned income. That nets off to almost zero. (29.9 -29.7 = 0.2)

It has 4.7 billions in debt, which was used to buy 5.6 billions in intangibles. Up to 2.4 billions of this is related to US entities and thus will be written down as they cant be justified when making losses.

So all that qbe has is 3 billions in reinsurance, which if you write off their US intangibles by 2.4 billions is almost gone. Plus this re insurance is done by their own captive re insurer in bahama... Which i hope is not off the book.

They also have 3 billions in deferred insurance, which will eventually be expensed in full.

Which means the value of this company lies on their 1+% return on investment worth 400 millions a year, and whether they can get 6-10% on the 9 billions unearned premium. If they make loss on this 9 billions, they are screwed.

I can see why they need to raise capital.