INSURANCE QBE halts trading
The company said on Friday morning that it had requested the halt to give it "time to finalise its analysis of information and review by the board, predominantly in relation to its North American operations, and the impact on QBE's forecast financial result for the year ending 31 December, 2013".
It is understood the insurance company is poised to downgrade its profit after the review. It has been facing problems in parts of the United States, home to one of its biggest divisions.
QBE, Australia's biggest general insurer by market capitalisation, suffered a 37 per cent drop in net profits in the six months to June, triggered partly by larger-than-expected costs from its US lenders-placed insurance business.
QBE has a December year-end and will make its full-year report in February.
The shares will remain in a trading halt "until the earlier of the commencement of normal trading on Tuesday, 10 December, 2013, or when the announcement is released to the market," the company said in a separate announcement.
The shares were $15.45 at Thursday's close.
Frequently Asked Questions about this Article…
QBE Insurance Group has placed its shares in a trading halt to finalize its analysis and review of information, particularly concerning its North American operations, which will impact its financial forecast for the year ending December 31, 2013.
It is anticipated that QBE will downgrade its profit forecast following the earnings review, due to challenges faced in its North American operations.
QBE's North American operations have contributed to a 37% drop in net profits in the first half of the year, partly due to higher-than-expected costs from its US lenders-placed insurance business.
QBE's trading halt will remain in place until the earlier of the commencement of normal trading on Tuesday, December 10, 2013, or when the company releases its announcement to the market.
Before the trading halt, QBE's shares closed at $15.45.
QBE, which has a December year-end, plans to release its full-year financial report in February.
QBE is facing challenges in the United States, particularly in its lenders-placed insurance business, which has resulted in larger-than-expected costs.
QBE is Australia's biggest general insurer by market capitalization, highlighting its significant presence in the Australian insurance market.
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