qbe share price

Hi All,

I just wanted to post my thoughts on why QBE is struggling lately. I basically think this comes down to three reasons.

1. Poor recent performance and management credibility;
2. Dividend Yield
3. Global interest rates (especically fixed interest)

Management
My feeling is that issue one is being addressed by the new management team. I think they will get NA under control and get a better profit from their insurance (core) business than has been the case in recent years. So that's a positive.

Dividend Yield
Here I believe management are letting us down. I know they need to preserve their capital ratios, keep the APRA requirements, maintain credit rating etc but I think they should do this within the context of having the highest dividend possible. Yield, and yield compression, is what is driving this market and QBE needs to get on board there ASAP. I give them a fail grade here.

Interst Rates
Not much QBE can do here. They have done well with the market they have and one day this will turn and help the stock immensely.

Anyway these are my thoughts. I'd be very keen to know what other people think.

Thanks

Twinsen