One of the worst performers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) today has been the QBE Insurance Group Ltd (ASX: QBE) share price.
In afternoon trade the insurance giant's shares are down 3.5% to $9.85.
Why are its shares lower?
With no news out of the company, today's decline is likely to be attributable to a research note out of Shaw and Partners.
According to the note, the broker has downgraded the insurer from a hold to a sell rating amid concerns that a profit downgrade is forthcoming.
Interestingly, a note out of Morgan Stanley this morning took a different view. Its analysts appear to believe that the insurer is better placed than its rivals for 2018.
As a result, it retained its overweight rating and $13.00 price target on its shares.
But judging by the share price reaction today, it has been Shaw and Partners' note that has had the most sway with investors.
Should you sell?
Considering the recent earthquakes and hurricanes in North and Central America, I would side with Shaw and Partners that there is a risk that an earnings downgrade could be around the corner.
This could arguably make it a good time to consider moving on from QBE to one of its rivals.
My pick of the industry remains Suncorp Group Ltd (ASX: SUN). I believe its shares are great value and provide a market-beating yield at present.
Furthermore, the company has no exposure to the catastrophic events that have unfolded over the last few weeks on the other side of the world.
