Shares still trading well below pre-profit warning levels
QBE’s shares fell a further 9.8% in Tuesday’s trading after rating agency Moody’s downgraded the Australian insurer’s credit rating to Baa2 from Baa1.
The share price closed at A$10.82 on Tuesday, compared with Monday’s closing price of A$12.
QBE’s share price had already dropped 22.3% in trading on Monday after QBE warned it would make a A$250m loss in its 2013 financial year because of reserve strengthening and goodwill write-downs in its North American operation.
The share price has recovered slightly in Wednesday’s trading – it is now trading around A$11.
However, this is still well below Friday’s closing price of A$15.45, before the profit warning and subsequent downgrade.