Qbe Insurance Group Limited · ASX:QBE
Qbe Insurance — Credit Suisse Asian Investment Conference 2018
19 slides from Qbe Insurance's conference presentation, Mar 21, 2018
Slide 1: ASX cover letter: Credit Suisse Asian 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 21 March 2018 The Manager Market Announcements Office ASX Limited Level 4 Exchange Centre 20 Bridge Stree
Slide 2: QBE Insurance Group - Credit Suisse Asian Investment Conference
For personal use only QBE Insurance Group Credit Suisse Asian Investment Conference Hong Kong Pat Regan I Group Chief Executive Officer All figures in US$ unless otherwise stated Wednesday 21 March 2018
Slide 3: 2017 In Review
2017 In Review For personal use only Catastrophe Operational Balance Impact Performance Sheet Combined operating ratio Asia Pacific result unacceptable Strong investment return 104.1%1,2,3 (2016 93.7%2,3,4) of 3.2% North American reserves “Excess” catastrophe claims5 strengthened: PYD and LPTs Capit
Slide 4: Asia Pacific and Latin America
Asia Pacific and Latin America Asia Pacific Latin America For personal use only 96% 116% 103% 113% 2016 HK workers’ Attritional One-off & Other 2017 2016 PYD Attritional Other 2017 COR1 comp claims restructuring COR1 COR1 claims COR1 costs • Significant items impacting FY17 • Announced sale of Latin
Slide 5: Investment Performance
Investment Performance 2017 return above plan Fixed income duration (years) For personal use only 0.4% (0.1%) 0.3% 1.0% (0.3%) 1.5 1.6 1.9% 3.2% 0.9 Planned FI Capital Gain Duration Impact Planned Growth Growth Asset Expenses 2017 FY Net Contribution from Credit from Rising Asset Outperformance Retu
Slide 6: A review of QBE today
A review of QBE today For personal use only Our Strengths Our Challenges • Strong franchises in Australia & New Zealand • Sub-scale operations in Latin America and and Europe parts of Asia & North America • Leading positions in key markets (North • Inconsistency in underwriting, pricing and American
Slide 7: Our Strategic Agenda: A stronger and simpler QBE
For personal use only Our Strategic Agenda: A stronger and simpler QBE
Slide 8: Our Focus
Our Focus For personal use only 1 Simplify QBE 2 Brilliant Basics 3 Drive Performance Improvement 4 Further Reposition North America 5 Remediate Asia 6 Talent and Culture 7 Build for the Future 7 QBE Insurance Group | 2017 full year results presentation
Slide 9: Simplify QBE
1 Simplify QBE For personal use only Our Focus Simplification Initiatives • Core markets and products: • Latin America - Attractive market • Hong Kong workers’ comp - construction - Solid market position with a competitive • Thailand sale agreement signed advantage • North American portfolio: - Real
Slide 10: Brilliant Basics
2 Brilliant Basics For personal use only Underwriting Pricing Claims Re-set and refine common Develop best in class Implement global claims standards and practices pricing models standards Consistent, best practice Deploy consistently across Drive further claims indemnity underwriting standards the
Slide 11: Drive Performance Improvement: Cell Review Process
3 Drive Performance Improvement: Cell Review Process Cell reviews are being rolled out across QBE to drive a higher degree of accountability and execution For personal use only • Instilling consistent operating routines across 60 global cells • Highly interactive regular sessions between Global, Loc
Slide 12: Further Reposition North America
4 Further Reposition North America Key Priorities For personal use only 2017 NEP 2013 NEP 1 Deliver 2018 plan $3.5Bn1 $4.9Bn2 $726m $1,170m 2 Establish Brilliant Basics fundamentals $844m $1,141m 3 Refine operating model - refine core P&C portfolio and simplify the operating platform $868m $1,049m 4
Slide 13: Remediate Asia: Execute Profit Improvement Program
5 Remediate Asia: Execute Profit Improvement Program Remediation activities Reduction in poor performing segments For personal use only GWP OF PIP1 PORTFOLIOS -7.8% 1 Targeted performance improvement plans -3.7% -12.9% 470 434 263 254 207 180 Implement Brilliant Basics: 1H16 1H17 2H16 2H17 FY16 FY17
Slide 14: Talent and Culture / Build For The Future
6 Talent and Culture For personal use only 7 Build For The Future • Continue to build talent and • Focus on building internal capability data science capability • Culture centred around: • Investment in Insurtech companies • Fast-paced • Decisive • Accountable • • Digital Talent & Diverse Innovation
Slide 15: Outlook
For personal use only Outlook
Slide 16: Our Focus: 2018 Targets
Our Focus For personal use only 1 Simplify QBE 2018 Targets 2 Brilliant Basics COMBINED 95.0% - OPERATING 3 Drive Performance Improvement RATIO 97.5%1,2 4 Further Reposition North America 5 Remediate Asia INVESTMENT 2.5% - 3.0%2 RETURN 6 Talent and Culture 7 Build For The Future 1 Assumes risk-free
Slide 17: Financial Strength
Financial Strength S&P Outlook ‘Stable’ Dividend For personal use only • Final dividend 4 Australian cents per share • FY17 total dividend 26 Australian cents per share • Total FY17 payout (including share buyback) of $495M • Dividend policy unchanged Cash remittances Share buyback • A$139M purchase
Slide 18: Questions & Answers
For personal use only Answers Questions &
Slide 19: Disclaimer
Disclaimer For personal use only The information in this presentation provides an overview of the results for the year ended 31 December 2017. This presentation should be read in conjunction with all information which QBE has lodged with the Australian Securities Exchange (“ASX”). Copies of those lo
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