Qbe Insurance Group Limited · ASX:QBE

Qbe Insurance — Citigroup 3rd Annual Investment Conference, London, March 2006

14 slides from Qbe Insurance's conference presentation, Mar 8, 2006

  1. Slide 1: Cover letter: CEO presentation to Citigroup conference London

    QBE Insurance Group 8 March 2006 The Manager Company Announcements Australian Stock Exchange Limited Level 6 Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, ret CEO presentation to the Citigroup conference in London - 9 March 2006 Please find attached for the market’s information, a

  2. Slide 2: Company overview

    lin, citigroup 3'¢ Annual Investment Conference London — March 2006 id by Frank O'Halloran, CEO Company overview BE is an Australian-based general insurance and reinsurance group and é of the world's 25 largest insurers and reinsurers measured: by net itten premium Established in 1866 Listed on ASX

  3. Slide 3: History of growth / Recap full year results to 31 December 2005

    History of growth insurance Insurance COR profit profit % % ‘ASM 99.3 84 404 99.5” 72 416 400.3 TT 447 103,9 28 56 402.5 54 486 409.6 “ (2.6) (119) To 406 Poa 627 dat 928 mre. 4,288 "6.040 17.0 @® QBE INSURANCE GROUP Recap full year results to 31 December 2005 cord net profit after tax of $1,091 mil

  4. Slide 4: Worldwide operations

    ‘Worldwide operations HALF YEAR FULL-YEAR Jun 2005 Dec 2005 Dec 2005 Dec 2004 5,423. 4,285 - 9,408 «°°. 8,766 4,331: 4,840. 9,171 8,571 2,506 3,880 7,386 6,781 61.0... 58.9 59.9 61.3 17.0 16.8 16.9. 176 12.3 42.3 12.3 124 90.3 88.0 89.1 “81.2 339 A69 808 - 597 248 234 480 331 585 703, 1,288 928 ee p

  5. Slide 5: Managing exposure to catastrophes

    anaging exposure to catastrophes Market loss* US$ BN 2004 - includes US hurricanes. and Asian tsunami 43 2005 - includes US hurricanes, storms and European floods 83 QBE total 2005 2004 catastrophe fosses US$BN US$ BN Gross {pre tax) 46 0.6 Net {pre tax) 04 0.2 nce in-our business plans: fee: Swiss

  6. Slide 6: Acquisitions by division 2002-2005

    _Acquisitions by division 2002-2005 Potential gross annual ---- APACE .... Americas ..... ‘European cpremiurt - $M operations [AAUP aviation portfolia, Es z | Reliance Brazil ~ 26 oBGU trade credit portfolio 7 ING Indonesia . : . ? F Malaysia JV 40 ‘Gerling tis. Aust renewal sights 125 7 Ensign 320

  7. Slide 7: Net invested funds

    Net invested funds 31 Dec 2005 31 Dec 2004 $M % $M % term money interest securities and other . 1,061 6.0 1,124 7.5 8,292 . . 47.1 5,482 ©... 36.6 7,537 42.9 6,957... -46.5 674 3.8 1,383 9.2 33 0.2 32 0.2 47,597 . 4100.0 ---44,975 |-100.0 (2,130) (1,805) 15,467 13,170 718 : 519 5.0 : 44 Iss investme

  8. Slide 8: Outstanding claims provision

    Outstanding claims provision demonstrates our prudent management of claims 2005 2004 2003 2002 2001 618 140 4d 12-162 $M 10,870, .- 9,462... 7,595. 7,994. 6,789 argin ‘over central estimate 4,243 argin as percentage of @® QBE INSURANCE GROUP Claims development utilisation of prior year release : a $

  9. Slide 9: Claims development

    Claims development. ‘discounted (note 9) 2005. . accident .. “Claims ~ 2005 ail Claims year “patio _.. years ratio $M = %to NEP $M %to NEP 7,386 7,386 4,204 © 56.9 4,232 “BTA 445 6.0 185 25 i] 4,649 62.9 4At7 59.9 a ‘ benefit frote: release of margins and any excess central estimate as the - ecomes

  10. Slide 10: Capital adequacy

    Capital adequacy 31 Dec 2005 31. Dec 2004 $M $M 3,263 . 2,870 1,856 1,204 oe 4,411 1,020 cess risk margin. (423) . (306) end (196} . (107) (1,382) (1,039) 4,529 3,642 668 645, 222 354 890 989 5,419 4,644 ‘minimum cap 2,846 - 2,555 | adequacy multiple 41.9 AB @® QBE INSURANCE GROUP _ Comparison of ca

  11. Slide 11: Financial model

    Financial model 2006 2003 2004127 = 2005 sensitivity $M 6,036 6,781 -~. 7,386 8,300 % $3.3 61.3 59.9 61.5 % 18.2 417.8 16.9 17.0 % 12.3 12.4 12.3 12.0 Be % 93.8 91.2 89.1 90.5. emiums held a yrs 13 1.4 1.50. 46 insurance funds. EB % 3.2 3.5 44 47 profitio NEP % 10.4 43.7 474A 17.0 y ratio (? : : %e

  12. Slide 12: Projected gross written premium / Business strategy and 2006 targets

    06 projected gross written premium $ BN mericas - US$1.6 billion SSSUMOS AS lo USSO.77 and AS to £0.43 @® QBE INSURANCE GROUP Business strategy and 2006 targets itive insurance conditions lasting longer than previous cycles and expected main strong through 2006, helped by 2005 catastrophes \lowances

  13. Slide 13: Business strategy and 2006 targets

    Business strategy and 2006 targets inue low risk strategy for investments - target gross investment yield of ly in excess of 5%, assuming a 5% capital appreciation on equities rease net invested funds to around $18 billion by 31 December 2006 from ig cash flow and acquisitions et tax expense tate of

  14. Slide 14: Suni

    Suni OBE INSURANCE GROUP, WWMAGBE Corn Note: $represenied as A$ throughout unless otherwise staled Comparative numbers for the year ended 3¢ December 2004 have been restated under Australian equivalents to IFRS 13

QBE Insurance Group — Citigroup 3rd Annual Investment Conference, London, March 2006 on 6ix