QBE’S BLACK EYE AS BOURSE BOUNCES BACK
INSURER QBE will sport a $US120 million ($163 million) shiner on the sale of its Mortgage and Lender Services business in the US but says the deal will free up cashflow.
QBE has agreed to sell the business to National General Holdings for $US90 million but expects to make a $US120 million loss on the deal, due to non-cash charges and write-offs associated with the transaction.
The deal will free up more than $US100 million of capital to be reinvested elsewhere in its operations, the Sydney-based company said.
Shares in QBE gained 28c, or 2 per cent, to $14.67.
It came as the broader Australian share market closed higher, spurred by the Greek parliament’s approval for bailout conditions.
“We’ve emerged from the dark clouds of Greece and China,” IG markets strategist Evan Lucas said.
“We were underperforming compared to international and Asian markets and approaching reporting season with pessimism, but in the past week investors have begun to get back in the market as it looks more attractive.”
Yesterday marked ae third straight day of gains for the share market, with some of that down to the rebound on Chinese markets.
The benchmark ASX 200 index closed up 33.4 points, or 0.6 per cent, at 5669.6 points while the broader All Ordinaries index was up 30.8 points, or 0.6 per cent, at 5649.8.
Woodside Petroleum shares tumbled 39c to $34.57 after plunging oil and gas prices conspired to almost halve its revenue.
Woodside’s revenue slumped to $US898 million in the June quarter, from $US1.68 billion a year ago.
BHP Billiton recovered from losses incurred after Wednesday’s announcement that its full-year earning would take a $2.8 billion hit, closing 18c higher at $27.08.