For QBE Insurance Managing Director Frank O’Halloran, the past couple of weeks since the terrorist attacks on America have been devastating. His company, the most respected of Australian insurers for its no-nonsense, pragmatic approach to the business, saw investors stampede to unload its shares last week after he announced it held significant exposures to the New York disasters.

By week’s end Mr O’Halloran had stopped the resultant gutting of QBE’s share price by staying on the front foot and demonstrating just how prudent the company is. In briefings with brokers, journalists and analysts, he managed to get the message across that the company’s net exposure to the New York disaster is about $250 million only, and is “substantially protected” by reinsurance.

Trading in QBE shares was halted after 60% of its value was wiped off by what could have been seen as panic selling. JP Morgan has predicted it will reach $6.50 over the next few weeks. It was $5.89 yesterday, which is more than 40% below its pre-disaster price.

Of course, QBE wasn’t the only company with US exposures to take a belting on the sharemarket. It’s just that it was the only Australian insurer in such a position. European insurers and reinsurers in particular have also experienced big runs on their share values.

Despite the fact that the insurance giant has been placed on S&P’s Credit Watch, QBE still remains well within APRA’s new minimum capital requirement.