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QBE heads for 52-week high

After this week’s market update by global insurer QBE Insurance (ASX: QBE) on its strategy to improve operations, the fallen market darling appears to be regaining favour with investors.

After crashing all the way to $10 in December 2012, the company has bounced back and is once again flirting with its 52-week high of $16.39. There have been a number of company specific issues for QBE (as opposed to industry wide issues) which has lead peers, with the exception of AMP (ASX: AMP), to perform relatively better over the past year.

As the chart below shows, Insurance Australia Group (ASX: IAG) has had a stellar run, outperforming the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) by nearly 40%, while Suncorp (ASX: SUN) has outperformed the index by over 25%.

tmchart

Source: Google Finance

With QBE set to benefiting from the declining Australian dollar, a significant cost saving program and with a trailing dividend yield of 3%, the stock has the potential to rally further.

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Motley Fool contributor Tim McArthur owns shares in QBE Insurance.

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