QBE Group Financial performance and strength

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QBE GroupFinancial performance and strength

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Contents

Key Slides/S02/Financial Performance & Strength/v25

Page nos

QBE’s position in the market 3Offices located in over 40 countries 4Security ratings 5Financial strength (US$) 6Financial strength (£) 7Financial strength (€) 85 year historical overview – presented in US Dollars 9QBE Group 10 year history (US$) 10QBE Group 10 year history (£) 11QBE Group 10 year history (€) 12QBE financial performance 13Disclaimer 14

3

QBE’s position in the market

• In the top 20 insurance/reinsurance businesses around the world measured by net written premium

• In the top quartile by underwriting profitability and return on equity

• Strong culture of leadership, business acumen and integrity

• Our minimum return on equity targets unchanged for each of our products and our businesses

• QBE culture is supported by a programme developed in-house called ‘ONE QBE’

• Small turnover of our senior management and technical staff

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Offices located in over 40 countries


Our people are selected for their ability, experience, potential and ‘can do’ approach to their work.

Australia Asia Pacific Europe North America Latin America

2,600

1,5005,400

4,0001,900

5

Security ratings


Company Standard & Poor’s

Fitch Ratings

A.M. Best

QBE Insurance (Europe) Limited A+ (negative) A+ (negative) A (negative)

QBE Re (Europe) Limited A+ (negative) A+ (negative) A (negative)

Date of affirmation: 12 December 2013 11 December 2013 12 December 2013

Insurer financial strength ratings

6

Financial strength (US$)


Group operating performance 2013 (US$M) 2012 (US$M)

Gross Written Premium 17,975 18,434

Net Earned Premium 15,396 15,798

Underwriting profit 341 453

Combined Operating Ratio 97.8% 97.1%

Insurance profit 841 1,262

Insurance profit to net earned premium 5.5% 8.0%

Investment income 801 1,216

Net loss after income tax (254) 761

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Financial strength (£)


Group operating performance 2013 (£M) 2012 (£M)





Insurance profit 535 794


Investment income 510 765


8

Financial strength (€)


Group operating performance 2013 (€M) 2012 (€M)





Insurance profit 632 978


Investment income 602 942


9

5 year historical overview – presented in US Dollars


Group operating performance

2013 (US$M)

2012 (US$M)

2011 (US$M)

2010 (US$M)

2009 (US$M)

Gross Written Premium 17,975 18,434 18,291 13,629 11,239

Gross Earned Premium 17,889 18,341 17,840 13,432 10,943

Net Earned Premium 15,396 15,798 15,359 11,362 9,446

Shareholders’ Funds 10,356 11,358 10,386 10,311 9,164

Combined Operating Ratio 97.8% 97.1% 96.8% 89.7% 89.6%

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QBE Group 10 year history (US$)


6,484 7,171 7,839

10,391 11,015 11,239

13,629

18,291 18,434 17,975

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Gross written premium year ended 31 DecemberUS$M

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Based on average exchange rates January to December 2013 US$ to GBP – 1.571766

4,125 4,562 4,987

6,611 7,008 7,151

8,671

11,637 11,72811,436

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Gross written premium year ended 31 December

QBE Group 10 year history (£)


£M

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4,8765,392 5,894

7,813 8,283 8,451

10,248

13,754 13,86113,516

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Gross written premium year ended 31 December

QBE Group 10 year history (€)


€M

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QBE financial performance

• Consistently produced underwriting profits and return on equity in top quartile of top 20 global insurance companies

• Maintain focus on bottom line

• Quality not quantity

• Our proven strategy of growth mainly through acquisitions and focus on profitability to continue

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The information contained herein has been prepared by QBE Insurance Group Limited or one of its subsidiaries (“the QBE Group”). Such information is confidential and is being provided to you solely for your information. It is not intended to create any duty towards you or any other business or legal relationship. The QBE Group makes no warranty or representation of any kind in respect of this information, in particular as to its accuracy, completeness, timeliness or suitability for your purpose. To the fullest extent permitted by law, the QBE Group disclaims any responsibility or liability for any loss or damage suffered or any costs incurred arising out of or in connection with your reliance on the information contained herein.

Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of QBE. The inclusion of such forward-looking information shall not be regarded as a representation by QBE or any other person that the objectives or plans of QBE will be achieved. QBE undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise.

By accepting a copy of this presentation, you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this disclaimer.

The reproduction or transmission of all or part of this document, whether by photocopying or storing in any medium by electronic means or otherwise, without the written permission of the owner, is prohibited.

© QBE European Operations 2014.

Disclaimer


Thank you

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QBE Group Financial performance and strength