What: QBE Insurance Group Ltd (ASX: QBE) has fallen 1.4% today despite a solid rally on the ASX which has pushed the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) up over half of one percent.
So what: The cause of the fall would appear to be a note to clients by an analyst at broker Morgan Stanley which suggested that the new incoming QBE Chief Financial Officer Mr Pat Regan may take the opportunity to raise fresh capital.
Now what: News overnight that the European Central Bank (ECB) has dropped the rate on bank deposits to negative, coupled with an uninspiring general outlook for QBE leaves investors with little reason to get excited about the global insurer. The one saving grace (arguably) is the stock price, which in the long term could represent good buying.
For investors looking for exposure to the insurance industry they should probably consider Insurance Australia Group Limited (ASX: IAG) given its domestic focus and exposure to higher interest rates. IAG has also just received the “all clear” from the Reserve Bank of New Zealand, which brings it one-step closer to purchasing Wesfarmers Ltd’s (ASX: WES) underwriting business which will further boost its domestic market share.