As the final hours on the 2013 financial year draw near, a review of the share price performance of the insurance sector shows what a difference successful stock picking can make.
As the chart below shows, the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) returned nearly 19% for the year ending June 30, while over the same time period QBE Insurance (ASX: QBE) lagged the market with a return of 15%. In comparison, the share prices of health insurer NIB Holdings (ASX: NHF) and general insurer Insurance Australia Group (ASX: IAG) were up around 45% and 60% respectively.
Source: Google Finance
While it is obvious that investors would have much preferred the super charged returns of NIB and IAG, shareholders in QBE are no doubt happy that the share price has rebounded from the lows of $10 touched during the past 12 months!
Trying to pick high yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!
Motley Fool contributor Tim McArthur owns shares in QBE Insurance.