Qbe Insurance Group Limited · ASX:QBE
Qbe Insurance — UBS Australasian Investment Conference 2015
18 slides from Qbe Insurance's conference presentation, Nov 17, 2015
Slide 1: ASX cover letter: UBS Australasian Investment Conference Presentation
QBE Insurance Group Limited ABN 28 008 485 014 Level 27, 8 Chifley Square, SYDNEY NSW 2000 Australia GPO Box 82, Sydney NSW 2001 telephone + 612 9375 4444 • facsimile + 612 9231 6104 www.qbe.com For personal use only 17 November 2015 The Manager Market Announcements Office ASX Limited Level 4 Exchan
Slide 2: QBE Insurance Group - UBS Australasian investment conference
For personal use only QBE Insurance Group UBS Australasian investment conference Pat Regan Group Chief Financial Officer Tuesday 17 November 2015 All figures in US$ unless otherwise stated
Slide 3: Agenda
Agenda For personal use only • About QBE • The QBE journey so far • Recap of 1H15 results • Divisional update • Lenders’ mortgage insurance update • Investment update • 3Q15 trading update • Our focus over the next 12 months 2 UBS Australian investment conference - 17 November 2015
Slide 4: About QBE
About QBE For personal use only • Top 20 global P&C insurer • Big enough to lead the market but small enough to flex with market cycles Pure P&C play • Specialty and commercial focus (minimal personal lines) • Intermediary distribution: global and regional brokers, agents and banks • No life insuran
Slide 5: About QBE (continued)
About QBE (continued) For personal use only 2014 GWP($M) 5,310 32% 4,526 28% 4,392 27% 2,179 13% 4 UBS Australian investment conference - 17 November 2015
Slide 6: The QBE journey so far
The QBE journey so far For personal use only • Portfolio remediation and asset sales – QBE returned to “core” • GSSC established to drive operational efficiency and consistency of process • Head office control framework and governance strengthened Transform • Cultural reset – federated model to OneQ
Slide 7: 1H15 financial results summary
1H15 financial results summary For personal use only For the half year ended 30 June 2015 2014(1) 2015(2) Change GWP $M 8,491 8,557 1% NEP $M 6,947 6,084 12% Underwriting profit $M 244 401 64% COR % 96.5 93.4 3.1ppt Insurance profit $M 530 610 15% Insurance profit to NEP % 7.6 10.0 2.4ppt Profit bef
Slide 8: 1H15 divisional management results
1H15 divisional management results For personal use only Australia North & New Emerging Equator (2) Group Group 1H15 America Europe Zealand Markets(1) Re (adjusted) (statutory) GWP ($M) 3,109 2,659 1,928 929 976 8,557 8,692 Contribution to Group GWP 36% 31% 22% 11% - 100% - GEP ($M) 2,309 2,112 1,91
Slide 9: Divisional update
Divisional update For personal use only • Pricing competitive but rate movements still positive overall • Pressure on attritional claims due to industry-wide commercial auto claims inflation North America • Key leadership roles filled, including CUO and head of standard lines • Crop pricing versus e
Slide 10: Lenders' mortgage insurance update
Lenders’ mortgage insurance update For personal use only • Investigated partial IPO and trade sale but pricing currently prohibitive • Capital usage is naturally declining - GWP likely to fall 30% in 2015 largely reflecting changes to lending policies as a result of APRA requirements Capital & risk
Slide 11: Lenders' mortgage insurance update (continued)
Lenders’ mortgage insurance update (continued) For personal use only 10 UBS Australian investment conference - 17 November 2015
Slide 12: Investment update
Investment update For personal use only Investment performance Q315 • Growth/risk assets of 14.5% at 30 September • FY15 insurance margin target inferred net investment return of around 2.65% • Our central estimate for FY15 (at current market levels) is a net investment return of 2.6%, even after si
Slide 13: 3Q15 trading update
3Q15 trading update For personal use only FY15 margin • Combined operating ratio unchanged at 94-95% (towards the top end) targets • Insurance profit margin unchanged at 8.5-10.0% (towards the bottom end) reaffirmed • Pricing remains competitive in all markets, slightly tougher than 1H15 Premiums •
Slide 14: Our focus over the next 12 months
Our focus over the next 12 months For personal use only Earnings • Demonstrate ongoing reserve stability stability & • Cost of large individual risk and catastrophe claims more predictable predictability • Optimise asset allocation to enhance investment returns • Target strongly growing dividends Gr
Slide 15: Our focus over the next 12 months (continued)
Our focus over the next 12 months (continued) For personal use only • Expense ratio currently 2-3% above global peers • Further cost savings targeted – minimum $100M Operational • Leverage scalable operating platform created in the Philippines efficiency • Investment in analytics and systems • Enhan
Slide 16: Questions & answers
For personal use only Questions & answers 15 UBS Australian investment conference - 17 November 2015
Slide 17: Disclaimer
Disclaimer For personal use only The information in this presentation provides an overview of the results for the half year ended 30 June 2015. This presentation should be read in conjunction with all information which QBE has lodged with the Australian Securities Exchange (“ASX”). Copies of those l
Slide 18: Thank you
For personal use only Thank you 17 UBS Australian investment conference - 17 November 2015
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