Why the QBE (ASX:QBE) share price is on a rollercoaster today

The 5.8 earthquake that affected much of Victoria this morning might have cooled sentiment for ASX insurance shares.

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a person with clipboard and pen assesses a crack in a brick wall, perhaps caused by an earth tremor.

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The QBE Insurance Group Ltd (ASX: QBE) share price is edging back into the green after a tough morning’s trade.

The insurers’ stock has rebounded amid dwindling concerns surrounding a magnitude 5.8 earthquake that affected Melbourne and much of Victoria this morning.

At the time of writing, the QBE share price has rebounded to $11.30, 0.27% higher than its previous close.

While QBE shares have recovered, other ASX-listed insurance providers’ stock isn’t faring so well.

The Suncorp Group Ltd (ASX: SUN) share price is currently 0.84% lower than its previous close. While that of Insurance Australia Group Ltd (ASX: IAG) is currently down 2.19%.

Let’s take a look at how the QBE share price has been performing in the wake of the earthquake.

QBE share price recovers as earthquake damage tallied

The QBE share price has bounced back from a poor start to today’s session.

Meanwhile, the damage caused by a 5.8 magnitude earthquake in Mansfield, Victoria has come to light.

The state’s acting premier, James Merlino, told a press conference no injuries were sustained as a result of the quake.

However, the government is aware of 46 reports of damage to buildings in Mansfield and suburbs of Melbourne.

Merlino also noted calls to 000 and call outs for assistance from the State Emergency Service spiked earlier today but are now back to normal levels.

Tremors from the earthquake were felt as far away as Launceston and Sydney.

The state also experienced 3 aftershocks in the hour following the initial quake. They reached magnitudes of 5.5, 4.0, and 3.0.

Experts have noted today’s earthquake is the highest magnitude quake felt by eastern Australia in decades.

As a result, the market might have been expecting it to have caused more damage than it seemingly did, thereby affecting ASX-listed insurance companies.

The QBE share price dipped quickly upon open and has steadily regained its losses, reaching its intraday high just before noon.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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