Qbe Insurance Group Limited · ASX:QBE
Qbe Insurance — Shareholder Meeting (May 2019)
31 slides from Qbe Insurance's shareholder meeting presentation, May 9, 2019
Slide 1: 2019 Annual General Meeting of Shareholders - Presentation Slides
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 9 May 2019 The Manager Markets Announcements Office ASX Limited Level 4 Exchange Centre 20 Bridge Street
Slide 2: All figures in US$ unless otherwise stated
All figures in US$ unless otherwise stated
Slide 3: Marty Becker
Marty Becker
Slide 4: 2018 year in review
2018 year in review we, PLEDGE To (apart from doing the obvious, like not drive tired, ond always wear 2 seat belt): [5] Slow down () Keep my distance from the car in front () Put away my phone when driving PS Signed — 3 ‘QBE Insurance Group 2019 Annual General Meeting
Slide 5: 2018 year in review
2018 year in review N ea Our people Our customers and partners Inthe community 2 018 REVIEW ®QBE ee ——— —— 4 QBE Insurance Group 2019 Annual General Meeting
Slide 6: Adjusted operating results
Adjusted operating results FY171,2,3 FY183,4 GWP $13,328M $13,657M NEP $11,768M $11,830M Net claims ratio 71.5% 64.0% Net commission ratio 16.5% 16.4% Expense ratio 15.3% 15.2% COR 103.3% 95.6% COR (ex discount rate) 103.9% 95.7% Net investment yield 3.1% 2.2% Cash net (loss) profit after tax $(262)
Slide 7: Townsville, Queensland February 2019
Townsville, Queensland February 2019
Slide 8: 2018 exit and reduced exposure
• 2018 “exit” ~$900M • Lower commercial property hazard profile • Brilliant Basics includes targeted reduction in large exposures • Reduced exposure through - Asset sales - Targeted de-risking
Slide 9: Slide 9
Slide 10: Ordinary dividend and share buyback
A$1.0Bn 28.0 Final A$0.5Bn 4.0 Interim 22.0 22.0 FY17 FY18 FY17 FY18 Ordinary dividend Share buyback
Slide 11: Group Executive team
Pat Regan Vivek Bhatia Vivienne Bower Jason Brown Group Chief Executive Officer Chief Executive Officer, Group Head of Communications Group Chief Underwriting Australia Pacific and Marketing Officer Peter Grewal David McMillan Margaret Murphy Carolyn Scobie Inder Singh Group Chief Risk Officer Group
Slide 12: President and Chief Executive Officer of The Hanover
• President and Chief Executive Officer of The Hanover Insurance Group, Inc. for 13 years until 2016. • More than 35 years experience in finance and strategic marketing in the North American insurance industry, including serving as Executive Vice President, Property and Casualty for The Hartford Fin
Slide 13: Annual financial report and resolutions
1. To receive and consider the annual financial report 2. To adopt the remuneration report 3. To approve the grants of Conditional Rights under the 2018 Executive Incentive Plan to the Group Chief Executive Officer 4. To approve the grant of Conditional Rights under the 2019 Long-term Incentive Plan
Slide 14: Climate change
Climate change 7 ® QBE QBE Insurance Group Limited Energy Policy \ Our approach to climate change MARCH 2019
Slide 15: Slide 15
Slide 16: Pat Regan
Pat Regan
Slide 17: Simplified and more focused, targeted de-risking
Simplified and Targeted Cell Brilliant Basics Pricing Delivered 2018 in Strong balance more focused de-risking reviews accelerating momentum line with targets sheet Portfolio Activities Strengthened Group-wide 2018 average rate Combined 2018 buyback simplified improving performance mgmt standardisat
Slide 18: Global underwriting standards
Global underwriting standards Over 500 cell reviews completed Global claims standards created Attritional ratio improvement in all divisions Global claims upgrades Rate adequacy improvement in all divisions Focus on addressing underperforming cells
Slide 19: GWP and premium rate increases
GWP ($M) Premium rate increases Attritional claims ratio2 5.5% 54.3% 13,657 4.6% 13,328 51.3% 49.1% 2.7% 1.0% FY17 FY18 1H17 2H17 1H18 2H18 2H17 1H18 2H18 COR3 Cash RoE Dividend per share (A¢) 103.9% 8.0% 50.0 95.7% 28.0 Final 26.0 4.0 22.0 22.0 Interim FY17 FY18 FY17 FY18 FY17 FY18 (1.4%) 1. Contin
Slide 20: Cell review performance management undertaken
66.0% 65.2% 64.0% 62.0% 61.1% 61.0% 60.1% 60.0% 59.1% 58.0% 56.0% 56.2% 54.0% 1H16 2H16 1H17 2H17 1H18 2H18 Cell review performance management undertaken 1. Constant currency basis; however up 5% excluding the impact of regulatory changes to CTP 2. Excludes the impact of changes in risk-free rates u
Slide 21: Cell review performance management undertaken
54.0% 53.0% 52.0% 51.0% 50.0% 48.9% 49.0% 48.0% 47.1% 47.0% 46.6% 46.0% 45.0% 44.0% 1H16 2H16 1H17 2H17 1H18 2H18 Cell review performance management undertaken 1. Constant currency basis 2. Excludes the impact of changes in risk-free rates used to discount net outstanding claims 3. Excludes one-off
Slide 22: Cell review performance management undertaken
58.0% 56.5% 56.0% 54.0% 52.1% 52.0% 50.0% 48.7% 48.0% 46.0% 1H16 2H16 1H17 2H17 1H18 2H18 Cell review performance management undertaken 1. Excludes the impact of changes in risk-free rates used to discount net outstanding claims 2. Excludes Crop 3. Excludes transaction to reinsure liabilities
Slide 23: Cell review performance management undertaken
60.0% 57.7% 58.0% 56.0% 54.6% 54.0% 52.0% 50.0% 48.0% 47.3% 46.0% 1H16 2H16 1H17 2H17 1H18 2H18 Cell review performance management undertaken 1. Constant currency basis 2. Excludes the impact of changes in risk-free rates used to discount net outstanding claims 3. Excludes transaction to reinsure Ho
Slide 24: Talent and culture
Talent and culture QBE DNA
Slide 25: Slide 25
Slide 26: Putting our customers first
Slide 27: Deliver the 2019 plan
Deliver the Brilliant Talent and Customer Operating Managing Future 2019 plan Basics culture focus sustainably risk focus Targeted rate Underwriting, pricing Continue to add Global rollout of Focus on Stronger and more More digitally increases and claims talent EQUITY customer sustainability and res
Slide 28: Sustainability
Sustainability Workforce (%) Greenhouse 32% see Women in senior management Target35%by2020 © 10% b EQUILE/AP from 2017 Carbon neutrality (tonnes CO,<) 47,273 cnsettwougn WSQA\ tonnes CO;e NTAS FUTURE PLANET Premiums4Good (Us$M) 2021 ambition $1s Total invested $440m Climate change action plan TCFD T
Slide 29: Deliver the 2019 plan
Deliver the 2019 plan Brilliant basics Talent and culture Customer focus Operating sustainably Managing risk Future focus 1. Assumes risk-free rates as at 31 December 2018
Slide 30: Thank you
Thank you
Slide 31: Important notice and forward-looking statements
The information in this presentation has been prepared for the QBE may cause actual results to differ materially from those either Insurance Group 2019 Annual General Meeting. expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from thes