QBE Insurance Group has been placed in a trading halt with reports suggesting the halt is due to an investigation by US authorities into one of the company’s subsidiaries, Balboa.
The halt will remain in place until either an announcement from the company is made, or trading resumes on January 16.
Reports indicate that the investigation will focus on excessive fees for policies that include some of the largest banks in the United States.
QBE has said it will make an announcement today “regarding topics such as preliminary 2011 results and 2012 worldwide reinsurance protections”.
The Australian sharemarket has opened flat this morning after weak results from international markets, which have been subdued over renewed fears over the European debt crisis.
The benchmark S&P/ASX200 index was up 3.3 points or 0.1% to 4190.8 at 12.00 AEST, while the Australian dollar rose slightly to $US1.02c.
ANZ shares rose 0.33% to $21.15 as Commonwealth Bank shares rose 0.24% to $50.06. Westpac shares climbed 0.26% to $20.68 as NAB shares rose 0.38% to $23.66.
In the United States, the Dow Jones Industrial Average fell 13 points or 0.1% to 12,449.
The US Federal Reserve has hinted the US economy is growing slowly, according to the latest notes in its Beige Book report.
The regular note on economic performance stated that reports nationwide “suggest that national economic activity expanded at a modest to moderate pace”.
“Compared with prior summaries, the reports on balance suggest ongoing improvement in economic conditions in recent months, with most districts highlighting more favourable conditions than identified in reports from the late spring through early fall,” it said.
The report also noted that consumer spending has picked up, and that tourism and travel are also on the rise.
“The combination of limited permanent hiring in most sectors and numerous active job seekers has continued to keep a lid on general wage increases,” it noted.
Revenue at the toll road operator Transurban rose by 4.1% in the fourth quarter, boosted by its newly acquired Lane Cove Tunnel in Sydney and toll increases.
The company posted a 6% increase in proportional toll revenue to $473.8 million and says it enters 2012 in “excellent health, with strong revenue and traffic growth, a robust balance sheet and real momentum on our development pipeline.”
Revenue at Melbourne toll road CityLink, its main asset, grew by 7.2%.
Meanwhile, Fitch has called on the European Central Bank to boost its purchases of euro zone debt to avoid the common currency’s collapse.
“Can the euro be saved without more active engagement from the ECB? Quite frankly we think no,” Fitch head of sovereign ratings David Riley said overnight.
He added that the end of the euro would be “cataclysmic.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
