The QBE Insurance Group Ltd (ASX: QBE) share price is seeking direction in early trade.
Shares in the S&P/ASX 200 Index (ASX: XJO) insurer closed yesterday at $11.68 and are currently trading for $1.73, down 0.3% after earlier posting small gains.
This comes as investors digest the latest news on the company's remediation plans.
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What remediation update was announced?
The QBE share price is in the green after the company reported on the results of its ongoing review of policy pricing promises dating back several years.
The appraisal is part of a wider industry review by the Australian Securities and Investments Commission (ASIC) and covers a number of different policy administration systems and products.
While the insurer said work is continuing, it's reported the initial finding to ASIC and will continue to work with the regulatory body to make sure impacted customers are remediated "as quickly as possible".
QBE said it will record a US$75 million (AU$110 million) pre-tax provision in the second half of the 2022 financial year (1H22) to cover the remediation along with interest and administration costs for the program. This amount will not be included in the management basis underwriting result.
Commenting on the review, QBE CEO, Andrew Horton, said:
We are disappointed by the findings of the review and apologise to those of our customers who have been impacted. We are working promptly to close out our process, and remediate impacted customers.
The ASX 200 insurer is due to deliver its 1H22 results on 11 August. The company said it will update the market with further details at that time.
QBE share price snapshot
The QBE share price has seen its share of ups and downs over the past 12 months, but overall has come out as a strong performer, up 11% since this time last year.
By comparison, the ASX 200 is down 8% over the full year.
At the current share price, QBE pays a trailing dividend yield of 2.6%, 10% franked.
