… as QBE forecasts 19-20% profit target
QBE has called for better regulation of local financial markets even as it displayed its confidence in hitting its 2008 profit prediction.
Chairman John Cloney told shareholders at the AGM on Friday the insurer expects a 7.5% increase in gross written premiums and 10% growth in net earned premiums during the year. QBE expects its 2008 profit margin will be 19-20%.
The company revised the average expected reduction in premium rates from 4% to 3%.
QBE shares have lost 25% of their value in 2008 despite a 30% increase in 2007 net profit to $1.925 billion. That figure was 6% below analysts’ expectations.
QBE management is understood to be angry at the extent of the decline, claiming short selling and unfounded market rumours have exacerbated the slump in stock.
Mr Cloney called for a transfer of responsibility for regulation of financial markets from the Australian Stock Exchange (ASX) to the Australian Securities and Investments Commission (ASIC).
QBE says the ASX has an inherent conflict of interest as both market operator and regulator.
“It is not in ASX’s interest to take steps to decrease trading volumes,” Mr Cloney said. “They clip the ticket for every transaction, so the more transactions the better.
“We do not need more regulation, rather we need effective regulation.”
Looking down the track, QBE CEO Frank O’Halloran told shareholders the Australian giant will continue its acquisition program.
“Our growth in the short term will need to be on the back of acquisitions which we define as acquiring new companies and insurance portfolios, new distribution channels and underwriting teams,” he said.
Chairman John Cloney told shareholders at the AGM on Friday the insurer expects a 7.5% increase in gross written premiums and 10% growth in net earned premiums during the year. QBE expects its 2008 profit margin will be 19-20%.
The company revised the average expected reduction in premium rates from 4% to 3%.
QBE shares have lost 25% of their value in 2008 despite a 30% increase in 2007 net profit to $1.925 billion. That figure was 6% below analysts’ expectations.
QBE management is understood to be angry at the extent of the decline, claiming short selling and unfounded market rumours have exacerbated the slump in stock.
Mr Cloney called for a transfer of responsibility for regulation of financial markets from the Australian Stock Exchange (ASX) to the Australian Securities and Investments Commission (ASIC).
QBE says the ASX has an inherent conflict of interest as both market operator and regulator.
“It is not in ASX’s interest to take steps to decrease trading volumes,” Mr Cloney said. “They clip the ticket for every transaction, so the more transactions the better.
“We do not need more regulation, rather we need effective regulation.”
Looking down the track, QBE CEO Frank O’Halloran told shareholders the Australian giant will continue its acquisition program.
“Our growth in the short term will need to be on the back of acquisitions which we define as acquiring new companies and insurance portfolios, new distribution channels and underwriting teams,” he said.