First and foremost we must consider the following. - The net exposure is further limited by catastrophe reinsurances, thus reducing the total exposure by large. On a scale, this is minuscule for QBE and can be recovered in less than a quarter.
- The impact is already factored for. QBE has already factored $US335 million as COVID-19 hit in their half year result, While the nett exposure is estimated to be less than $US70 million after (thats one-fifth of whats already factored. so its great)
- QBE has appealed the decision and the chances of being ruled in favour of insurance industry is high.
- Depending on whether the decision is in favour or not, the estimated gross cost to QBE could increase or decrease, however the net cost to QBE is not expected to vary.
All this puts QBE's SP at a great buy price and imo 20% up in less than a month is possible.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)