we are moving on.

....let's move on from the "shocking announcement".


QBE hasn't imploded to $1, its above $12 to the disgust of some and it's seems to be holding around this mark. As for guidance of $1.33 for FY12 who really knows this early in the year, it's all about how many catastrophe's they have and where.

Now I would like to highlight a particular point regarding one of the catastrophe's that put a $500m hole into their FY11 profit.

The Qld Floods and in particular the Brisbane floods.

It is now coming to light via the Wivenhoe Dam inquiry that the SEQ Water may well be responsible for this (or some part of) that cost the insurers billions.

Why highlight this misery?
If SEQ Water (Qld Govt) is found responsible, then the insurers and re-insurers will be seeking damages - that simple.

Think about it, this isn't a case of some 5 year old kid that lit a match and burnt down the neighbours house. This is an authority that was required to look after one of the state's most valuable assets, and they may not have followed their own guidelines regarding water release heights. If they had gone by the book, Brisbane may have been spared.

Have no doubt, the insurers will have their legal teams at this enquiry.

...and if the authority is found negligent, QBE will want their money, with interest.

Pep