QBE Insurance losses In Emerging Markets

QBE Insurance losses In Emerging Markets

QBE Insurance Group said on Tuesday it was unaware of the impact of losses in its emerging markets division on overall profitability during its annual meeting in early May. It was not until a board meeting on 21 June 2017 that the financial condition of each of its global divisions, including the emerging markets division, had been clarified and confirmed.

The company downgraded its overall combined operating ratio to the 94.5 per cent to 96 per cent range, compared with a February guidance of 93.5 per cent to 95 per cent. Shares of Australia’s no.1 insurer fell as much as 1.5 per cent to $11.45 in early trade, their lowest level since early-December, before swinging back into the green.

Technical Analysis

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 12.66.

The projected lower bound is: 11.22.

The projected closing price is: 11.94.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 22 black candles for a net of 4 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 26.9461. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.91. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 145 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -54. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.

Rex Takasugi – TD Profile

QBE INSUR. FPO closed up 0.060 at 11.970. Volume was 39% above average (neutral) and Bollinger Bands were 34% narrower than normal.

Open     High     Low      Close    Volume
12.080  12.080  11.970  11.970   6,340,408

Technical Outlook
Short Term:               Neutral
Intermediate Term: Bearish
Long Term:                Bearish

Moving Averages: 10-period    50-period    200-period
Close:                       12.11             12.48            12.16
Volatility:                18                  37                  34
Volume:                   3,499,737    4,832,487    5,509,731

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


QBE INSUR. FPO is currently 1.6% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of QBE.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on QBE.AX and have had this outlook for the last 35 periods.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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