UPDATE 1-QBE: no bids, unaware of reason for share move

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SYDNEY, March 20 (Reuters) - QBE Insurance Group Ltd (QBE.AX: Quote, Profile, Research, Stock Buzz), Australia's top insurer by premium income, said on Thursday it was not aware of any takeover approach and was unaware of any reason for a rise in its share price.

QBE's statement came in response to a query from the stock market operator after the stock jumped as much as 8 percent in heavy trade in a broader market down 2.6 percent.

QBE said it was not aware of a takeover approach as speculated by media on Thursday, and added that it was in compliance of the listing rules of the stock exchange.

After the announcement, QBE shares extended their gains to rise as much as 10.4 percent to A$23.95 in a broader market down 2.8 percent. The stock climbed 7 percent on Wednesday.

More than 2 percent of QBE's shares changed hands.

Some fund managers said that there were expectations that QBE may be close to making an acquisition in the U.S. or in Europe. QBE said in February that it had the capacity to add between A$1.6-1.8 billion ($1.45-1.6 billion) in premiums through acquisitions.

Other fund managers said the stock was rising on short covering, having slumped over 20 percent since late February after it reported weaker-than-expected full-year earnings.

"The stock was sold miles too much on just nebulous concerns," said Peter Vann, a portfolio manager with Constellation Capital Management.

"QBE was tainted with what was happening with the likes of AIG and other global insurers where some of their asset qualities were questionable and they had writedowns," he added. ($1=A$1.10) (Reporting by Denny Thomas) ((denny.thomas@reuters.com; +61 2 9373 1812; Reuters Messaging: denny.thomas.reuters.com@reuters.net))