The accident prone QBE Insurance Group Ltd (ASX: QBE) ended the week on a high with shares up 4.34% to $11.54 as positive macro-economic news out of its important North American and European markets installed confidence in investors.
With nothing material announced to the market buying may have been the result of value-oriented investors snapping up a business that looks cheap on traditional fundamentals. Selling for $11.10 in early trade, QBE traded on just 8.5 times projected earnings of 131.2 cents per share for the 2015 financial year, with a fully franked 3.7% dividend yield.
Large volumes were traded and even after today's mini-rally QBE may still have plenty to offer. Especially if it's able to turnaround its North American business and execute on a cost-cutting drive expected to deliver $250 million in savings by the end of 2015.
Rival Insurance Australia Group Limited (ASX: IAG) has doubled its share price in not much more than two years, after it delivered on its own strategic growth strategy and QBE investors will hope it can repeat the trick.
