Qbe Insurance Group Limited · ASX:QBE

Qbe Insurance — Citi Australian Investment Conference 2010

14 slides from Qbe Insurance's conference presentation, Oct 26, 2010

  1. Slide 1: ASX cover letter: CFO presentation to Citi Australian investment conference

    QBE Insurance Group Limited ABN 28 008 485 014 Head Office 82 Pitt Street SYDNEY NSW 2000 For personal use only Australia Postal Address Box 82 GPO SYDNEY 2001 26 October 2010 Telephone: +61 (2) 9375 4444 Facsimile: +61 (2) 9231 6104 DX 10171, Sydney Stock Exchange The Manager Company Announcements

  2. Slide 2: Citi Australian Investment Conference

    For personal use only QBE INSURANCE GROUP Citi Australian Investment Conference Presented by Neil Drabsch, Group CFO 26 October 2010

  3. Slide 3: Competitive advantage through product and geographic diversification

    Competitive advantage through product and geographic diversification across key insurance markets For personal use only ƒ Group head office in Sydney ƒ Divisional head offices in London, New York, Singapore and Sydney ƒ Operations in 49 countries and around 13,400 staff worldwide ƒ Forecast 2010 FY

  4. Slide 4: Acquisition of Secura NV

    For personal use only Acquisition of Secura NV ƒ Acquisition expected to complete on 29 October 2010 ƒ Secura NV is a specialised European reinsurer with a diversified and Europe focused customer portfolio ƒ Established in 1945 ƒ Located in Brussels, Belgium ƒ Employs 91 staff ƒ 2010 gross written p

  5. Slide 5: Secura NV – inwards reinsurance GWP

    For personal use only Secura NV – inwards reinsurance GWP 2009 By geography 2009 % By product €M % France 31.0 Long-tail accident and health 34.2 15.4 Benelux 30.0 Short-tail proportional 40.2 18.2 United Kingdom 9.0 Short-tail non proportional 38.0 17.1 Italy 9.0 Long-tail proportional 21.7 9.8 Spa

  6. Slide 6: Secura NV – strong balance sheet

    For personal use only Secura NV – strong balance sheet 2009 Acquisition details 2009 €M €M Assets Shareholders’ equity at 31 Dec 2009 205 Investments and cash 966 Est’d 2010 profits and M/V movements 40 Retrocessionaire’s share of technical provisions 108 Adjusted net assets 245 Debtors from reinsur

  7. Slide 7: Market conditions

    For personal use only Market conditions ƒ Premium rates up 2% - 3% on QBE renewed business ƒ Strong competition on new business ƒ Reinsurance rates generally soft, with increases only on event driven criteria e.g. marine and energy risks ƒ Insurance markets remain competitive but resistant to more f

  8. Slide 8: Market conditions: exceptional severity of natural catastrophes in 2010 1H

    Market conditions: exceptional severity of natural catastrophes in 2010 1H For personal use only 2010 2000 – 2009 The first six months: average Number of events 440 380 Overall economic loss US$BN 70 41 Insurance losses US$BN 22 11 The five largest natural CATs in first six Overall Insurance months

  9. Slide 9: Investor feedback post 2010 1H result

    For personal use only Investor feedback post 2010 1H result ƒ Sound underlying underwriting results and business model ƒ Uncertainty around timing of recovery in global interest rates and impact on QBE insurance margin ƒ Positive response to US dollar reporting – better view of real premium growth a

  10. Slide 10: APRA developments

    For personal use only APRA developments ƒ Uncertainty on changes and timing for Level 1 changes: - technical papers issued May, July and September 2010 - QIS and technical paper comments due by 29 October - issue of draft standards and response paper expected December 2010 - issue of final standards

  11. Slide 11: Volatile risk-free interest rates impact COR, insurance margin and PoA

    Volatile risk-free interest rates impact COR, insurance margin and PoA For personal use only Risk-free rate variations 16 June 15 Apr 31 Dec Sensitivity 2010 1H 2010 2010 (2) 2009 Weighted average risk-free rates % 2.55 2.75 3.19 3.40 3.20 Impact on key half year ratios (1): - COR % 90.0 89.7 89.2 8

  12. Slide 12: Closing remarks

    For personal use only Closing remarks ƒ Be cautious of discount rate movements at year end ƒ Market conditions remain soft although underlying insurance business and portfolios are sound ƒ Action being undertaken to enhance investment yields, subject to our strict risk criteria – realised and unreal

  13. Slide 13: Disclaimer

    For personal use only Disclaimer The information in this presentation provides an overview of the strategy and operations of QBE Insurance Group Limited. This presentation should be read in conjunction with all information which QBE has lodged with the Australian Securities Exchange (“ASX”). Copies

  14. Slide 14: QBE Insurance Group

    For personal use only QBE INSURANCE GROUP www.qbe.com 13 Citi Australian investment conference presentation

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