QBE Insurance (ASX: QBE)

QBE Insurance (ASX: QBE) An insurance company

1886

FOUNDED

LARGE

SIZE

INSURANCE

Industry

Product / Service

  • QBE is a general insurance and reinsurance company

  • QBE provides various types of general insurance to cover personal and commercial risks in areas and activities such as home, travel, mining, universities, cargo ships and wineries

  • Globally, QBE provides protection for a diverse range of assets and activities including airports and airfleet, construction activities and container port operations

  • QBE operates six business units:

    • North American Operations - general insurance and reinsurance in the US

    • European Operations - general insurance and reinsurance in UK, Canada and Europe. Among others, QBE operates through Lloyd’s of London

    • Australian & New Zealand - general, personal and commercial insurance in Australia and New Zealand

    • Emerging Markets - general insurance in Central and South America and in the Asia Pacific region

    • Equator Re - reinsurance in Bermuda for related entities

    • Corporate - non-operating and financing units

  • Insurance companies such as QBE make profits through two main avenues:

    • Premiums – customers pay insurance premiums to transfer the financial risk of an event to the insurance company.  If that event happens, the insurance company is financially liable.  The total income received is then netted off against claims paid to customers

    • Investment Revenue – insurance companies are paid premiums up-front, but may not have to pay claims until a later time.  This cash flow forms a pool of money that can be invested and a returned earned.  Insurance companies typically invest these pools conservatively and there are strict rules about keeping the funds available should claims need to be paid suddenly

History

  • QBE can be traced back to the establishment of The North Queensland Insurance Company Limited (QI) in 1886

  • QI, Bankers’ and Traders’ Insurance Company (B&T) and The Equitable Probate and General Insurance Company merged in 1973 to form QBE

  • QBE listed on the ASX in June 1973

Customers

  • QBE’s customers include consumers, universities, mining companies, port operators and construction companies

Operations

  • The company is headquartered in Sydney

  • The company’s operations are located in 37 countries worldwide

To be the insurer that builds the strongest partnerships with customers

Profitability Table

Year Revenue % change EBT ($m) % change
CY 2008 10,773 4.1 2,028 -5.0
CY 2009 10,943 1.6 1,891 -6.8
CY 2010 13,432 22.7 1,551 -18
CY 2011 17,840 32.8 868 -44
CY 2012 18,341 2.8 941 8.4
CY 2013 17,889 -2.5 -448 L
CY 2014 16,521 -7.6 931 P
CY 2015 14,922 -9.7 953 2.4
CY 2016 14,276 -4.3 1,072 12.5

Fun Facts

  • John Neal’s (CEO) total remuneration for CY 2016 was US$3.0m

  • An item on QBE’s strategic agenda is the innovative use of drone technology to deliver excellent claims service to clients

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