The QBE Insurance Group Ltd (ASX: QBE) share price is seeking direction in early trade.
Shares in the S&P/ASX 200 Index (ASX: XJO) insurer closed yesterday at $11.68 and are currently trading for $1.73, down 0.3% after earlier posting small gains.
This comes as investors digest the latest news on the companyâs remediation plans.
What remediation update was announced?
The QBE share price is in the green after the company reported on the results of its ongoing review of policy pricing promises dating back several years.
The appraisal is part of a wider industry review by the Australian Securities and Investments Commission (ASIC) and covers a number of different policy administration systems and products.
While the insurer said work is continuing, itâs reported the initial finding to ASIC and will continue to work with the regulatory body to make sure impacted customers are remediated “as quickly as possible”.
QBE said it will record a US$75 million (AU$110 million) pre-tax provision in the second half of the 2022 financial year (1H22) to cover the remediation along with interest and administration costs for the program. This amount will not be included in the management basis underwriting result.
Commenting on the review, QBE CEO, Andrew Horton, said:
We are disappointed by the findings of the review and apologise to those of our customers who have been impacted. We are working promptly to close out our process, and remediate impacted customers.
The ASX 200 insurer is due to deliver its 1H22 results on 11 August. The company said it will update the market with further details at that time.
QBE share price snapshot
The QBE share price has seen its share of ups and downs over the past 12 months, but overall has come out as a strong performer, up 11% since this time last year.
By comparison, the ASX 200 is down 8% over the full year.
At the current share price, QBE pays a trailing dividend yield of 2.6%, 10% franked.
The post Hereâs whatâs moving the QBE share price on Tuesday appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of July 7 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- 2 excellent ASX dividend shares rated as buys by experts
- Broker names 2 ASX 200 financials shares to buy
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/ZiFwpsd
Stock Pick 