QBE's move makes "a lot of sense" to Daiwa analyst Johan Venderlugt, who estimates the deal will generate $400m in gross written premiums this fiscal year ending June 30, 2010, increasing this number for QBE as a whole by 12 per cent.
The move should increase earnings contributions from Australia and give room for cost synergies, but with low integration risks, as QBE is already responsible for most of Elders' underwriting business.
Daiwa maintains a "buy" rating on QBE with a target price of $23.60. QBE shares closed off 27c yesterday at $19.50.
qbe pumps $315m into elders, page-7
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Last
$19.58 |
Change
0.260(1.35%) |
Mkt cap ! $29.47B | |||
| Open | High | Low | Value | Volume |
| $19.35 | $19.69 | $19.34 | $65.27M | 3.338M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 1183 | $19.54 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $19.58 | 3250 | 1 |
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| Last trade - 16.10pm 19/11/2024 (20 minute delay) ? |
| QBE (ASX) Chart |