Qbe Insurance Group Limited · ASX:QBE

Qbe Insurance — Corporate Update (December 2020)

9 slides from Qbe Insurance's corporate update, Dec 18, 2020

  1. Slide 1: QBE December 2020 Market Update 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 18 December 2020 The Manager Market Announcements Office ASX Limited Level 4 Exchange Centre 20 Bridge St

  2. Slide 2: Market update

    QBE INSURANCE GROUP LIMITED December 2020 Market update Friday 18 December 2020 All figures in US$ unless otherwise stated

  3. Slide 3: Adjusted cash loss after tax: 1H20-FY20 (estimate)

    Adjusted cash loss after tax: 1H20-FY20 (estimate) Q4 ~($1.5B) ~($780M) ($666M) 1 1H20 COVID-19 Excess Crop PYD Underlying Investment Tax & other FY20 NA Other Amortisation FY20 adjusted catastrophes CAY income estimated goodwill estimated cash loss underwriting adjusted & DTA statutory result cash

  4. Slide 4: Pricing momentum

    Pricing momentum Accelerating Group-wide premium rate increases1 9.0% • Material increase in pricing momentum in North America and International 6.3% 10.2% 9.8% • Australia Pacific pricing momentum impacted by COVID-19 response: 5.0% 8.3% premium rate increases were reinstated on 1 October 2020 7.3%

  5. Slide 5: Claims ratio analysis (ex COVID-19)

    Claims ratio analysis (ex COVID-19)1 Underlying CAY COR2 Attritional claims ratio3 Large claims ratio Catastrophe claims ratio 98.4% 47.5% 8.2% ~6% 93.7% ~94.0% 5.5% 45.5% ~45% 7.5% ~7.5% 3.7% 4.7% Allowance FY19 1H20 3Q20 FY19 1H20 3Q20 FY19 1H20 3Q20 FY19 1H20 FY20E YTD YTD YTD • Underlying COR tr

  6. Slide 6: COVID-19 estimated ultimate net cost unchanged at $600M

    COVID-19 estimated ultimate net cost unchanged at $600M Breakdown of $600M COVID-19 estimated ultimate net cost $600M $130M FY21 estimate $36M $27M $115M Risk margin $35M $37M Premium & $100M expenses $470M FY20 impact $335M $255M Claims 1H20 Trade credit LMI Casualty Other 2 Estimated ultimate net

  7. Slide 7: Investment Return and Capital

    Investment Return and Capital Investment return PCA Multiple Gearing 1.80x ~33% ~1.7-1.75x Goodwill, DTA 30.2% & other intangible write-down 0.2% ~30% (0.4%) 1H20 3Q20 1H20 FY20E1 1H20 FY20E YTD Pro Forma2 • Credit spreads narrowed significantly in 3Q20 • PCA multiple expected to be above the • Gear

  8. Slide 8: Questions & Answers

    Questions & Answers

  9. Slide 9: Disclaimer

    Disclaimer This document (the “presentation”) is dated 18 December 2020 and has contingencies subject to change without notice, as are statements about been prepared and authorised by QBE Insurance Group Limited (ABN market and industry trends, projections, guidance and estimates. 28 008 485 014) (t

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