Qbe Insurance Group Limited · ASX:QBE
Qbe Insurance — Shareholder Meeting (April 2007)
65 slides from Qbe Insurance's shareholder meeting presentation, Apr 4, 2007
Slide 1: Annual General Meeting cover letter to ASX
insurance Group 4 April 2007 The Manager Company Announcements ASX Limited Level 6 Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir, re: ANNUAL GENERAL MEETING OF SHAREHOLDERS - 4 APRIL 2007 Pursuant to ASX Listing Rule 3.13.3, please find attached: 1. Chairman’s address; 2. Chief Executive
Slide 2: Chairman's Address - 2007 AGM
CHAIRMAN’S ADDRESS ~— 2007 AGM Ladies and Gentlemen: | trust you agree that our 2006 result announced to the ASX on February 23rd 2007 was outstanding. After many years in this business, | believe | am qualified to say the insurance results were brilliant by any measure. Net profit after tax was up
Slide 3: Chairman's Address: currency, investments and capital
QBE's profit continues to be exposed to movements in overseas currencies against Australian dollars. A 1% appreciation or depreciation of the Australian dollar against all currencies is estimated to impact profit after tax by around $10 million in 2007. We continue to maintain a low risk strategy fo
Slide 4: Funding of US acquisitions
The equity component of funding of these acquisitions was initially estimated to be $1.3 billion. Following discussions with rating agencies and assessment of our future capital requirements, this sum is expected to be less than $1 billion. To date we have raised $403 million from an equity placemen
Slide 5: Corporate culture and staff incentives
These values are embodied in the unique QBE culture and underpin the development and performance of QBE’s management and staff throughout the world. They enable us to consistently achieve high business standards and deliver excellent returns to shareholders. The QBE staff incentive schemes are align
Slide 6: 2007 profit outlook and closing remarks
Subject to other usual caveats, for example large losses and catastrophes not exceeding the significant allowance in our business plans, and exchange rate movements, we remain confident of increasing profit after tax by 20% and diluted earnings per share by 15% in 2007. In closing, | would particula
Slide 7: Chief Executive Officer's Address - 2007 AGM
CHIEF EXECUTIVE OFFICER’S ADDRESS ~— 2007 AGM Ladies and Gentlemen, | am pleased to report that 2006 has been another rewarding year for shareholders with strong growth in premium income, record underwriting and after tax profits and the conversion of acquisition opportunities which will ensure soli
Slide 8: Operating ratios and claims performance
All our major operating insurance divisions produced combined operating ratios less than 90% and improved insurance profitability. The substantial majority of our products and countries in which we operate also produced strong underwriting profits. 2006 saw gross written premium and net earned premi
Slide 9: Balance sheet positioning and claims provisions
QBE'’s balance sheet continues to be extremely well positioned for the future as demonstrated by the following: A Net outstanding claims of $11.6 billion include risk margins of $1.4 billion to give a probability of adequacy slightly in excess of 94%. Our overall claims development over the past ten
Slide 10: Acquisitions in the past year
In the past year: « We acquired OneBeacon Agriculture division in the US with expected gross written premium of $115 million in 2007; e« We acquired a general aviation business in Denmark, a new team for the general aviation business in Lloyd’s and a new marine team in Sweden which is expected to gi
Slide 11: APACE and European Operations results
Overall average premium rates for the APACE operations reduced by 3.3% in 2006 to reflect the lower claims frequency, the positive impact of tort reform in Australia and to retain our quality customers. Our retention of customers continues to be high. Gross written premium is expected to be around $
Slide 12: US acquisitions and investment outlook
We will continue our low risk investment strategy in 2007 and, subject to exchange rates, we expect the investment portfolio to be around $28 billion by the end of 2007 and $30 billion by the end of 2008. The major acquisitions in the US were strategic moves for QBE. They were at prices which are pr
Slide 13: Premium growth outlook for 2007 and 2008
The acquisitions in 2006 and early 2007 will mean that we are likely to see growth in gross written premium in 2007 of close to 30% to around $13.5 billion and growth in net earned premium by close to 40% to around $11.4 billion. Because of the timing of the acquisitions, growth in gross written and
Slide 14: First quarter update and market position
The Chairman has already mentioned that our first quarter results are encouraging. We have experienced some large losses and catastrophes but at this stage they are running below those of last year. We are conscious that the second half of the calendar year brings greater exposure to windstorm losse
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Slide 20: Share Price Performance
E Share Price Performance OBE Share Price Performance including Reinvestment of Divdends ASX All Ordinaries Accumulation Index
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Slide 40: CEO - Australia Pacific Asia Central Europe (APACE)
CEO - Australia Pacific Asia Central Europe (APACE)
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Slide 42: CEO - European Operations
CEO - European Operations
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Slide 44: President & CEO - the Americas
ce President & CEO - the Americas
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Slide 46: Group General Manager - Investments
Group General Manager - Investments
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Slide 53: Bermuda
Bermuda KEY 0 Australia Pacific Asie Central Europe li Europe @ the Americas i Equator Re
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Slide 62: Non-executive director of QBE Group
Non-executive director of QBE Group
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Slide 64: Non-executive director of QBE Group
Non-executive director of QBE Group
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