QBE Insurance Group Limited · ASX:QBE
QBE Insurance — Shareholder Meeting (2013)
36 slides from QBE Insurance's shareholder meeting presentation, Apr 11, 2013
Slide 1: 2013 Annual General Meeting
2013 Annual General Meeting Belinda Hutchinson John Neal
Slide 2: Chairman’s address
Chairman’s address Belinda Hutchinson
Slide 3: Group Chief Executive Officer address
Group Chief Executive Officer address John Neal
Slide 4: Contents
Contents • 2012 financial results summary • 2013 outlook • Refreshed vision and strategy • Executive management changes 4
Slide 5: 2012 financial results summary
2012 financial results summary • Insurance profit for FY12 $1,262m with COR 97.1% • $464 million of adverse prior accident year claims Underlying insurance development business sound • Group’s risk margins strengthened by $88 million - improved probability of adequacy of outstanding claims • NPAT up
Slide 6: 2012 performance by division
2012 performance by division Australia & North Latin Europe New Asia Equator FY12 Group America America Zealand Pacific Re GWP ($M) 18,434 6,569 1,223 5,077 4,987 578 3,710 GEP ($M) 18,341 6,978 1,170 4,854 4,794 545 3,712 NEP ($M) 15,798 3,501 1,018 3,331 4,123 415 3,410 Claims ratio (%) 66.0 77.6
Slide 7: 2012 underlying insurance profit margin analysis
2012 underlying insurance profit margin analysis 15.0 14.0 13.0 0.6 0.6 12.0 0.6 (1.2) 0.4 (0.1) 11.0 10.0 2.9 9.0 8.0 7.0 6.0 11.8 5.0 4.0 8.0 3.0 2.0 1.0 0.0 FY12 reported PY development (1) Risk margin top-up Risk-free rates (3) Investment returns Attritional (5) Large risk & cats (6) Commission
Slide 8: 2013 targets
2013 targets Gross written premium • US$18.5-19.0billion Net earned premium • US$15.5-16.0billion Combined operating ratio • 92% Insurance profit margin • 11% of net earned premium 8
Slide 9: 2013 insurance profit margin guidance analysis
2013 insurance profit margin guidance analysis 15.0 14.0 13.0 0.6 0.6 12.0 0.6 (1.2) 0.4 (0.1) (1.0) 11.0 (0.9) 1.1 10.0 2.9 9.0 8.0 7.0 6.0 11.8 11.0 5.0 4.0 8.0 3.0 2.0 1.0 0.0 FY12 PY Risk margin Risk-free Investment Attritional (5) Large risk & Expenses FY12 OTP Investment Rate & FY13 margin rep
Slide 10: Last year we rolled out our vision
Last year we rolled out our vision QBE has a vision to be the most successful global insurer and reinsurer in the eyes of our customers, our people, our shareholders and the community 10
Slide 11: Building the new QBE
Building the new QBE Value creation Leadership in core businesses To be the most successful global insurer and reinsurer in the eyes of our customers, our people, our shareholders and the community Operational excellence, global reach and scale ® QBE
Slide 12: Building the new QBE
Building the new QBE Value creation model 12
Slide 13: QBE’s Value Creation Model
QBE’s Value Creation Model Leadership in our core businesses Consistently achieve Operational Profitable growth excellence – global and diversification business plans reach & scale and targets Financial strength and flexibility World class talent and leadership 13
Slide 14: Forthcoming Group Executive leadership changes
Forthcoming Group Executive leadership changes • Neil Drabsch Our Group CFO retires February 2014 • Richard Pryce Currently Deputy CEO of European Operations takes over as CEO Europe November 2013 • Steven Burns Our current CEO of European Operations moves to Sydney as Group CFO February 2014 • Davi
Slide 15: Closing remarks
Closing remarks • The challenges of 2011 and 2012 have provided valuable lessons • 2012 result was disappointing but we move into 2013 in a strong position • We will act with renewed focus on three areas • PERFORMANCE • EVOLUTION • PEOPLE 15
Slide 16: Formal Business
Formal Business Belinda Hutchinson
Slide 17: Item 1: Receive annual financial report
Item 1: To receive and consider the annual financial report and the reports of the directors and of the auditors of the Company for the year ended 31 December 2012 17
Slide 18: Item 2: Adopt the remuneration report
Item 2: To adopt the remuneration report 18
Slide 19: Results of proxy voting for item 2
Results of proxy voting for item 2 Resolution For Open Against Abstain 2 672,254724 4,065,598 62,397,659 9,072,926 19
Slide 20: Item 3: Grant of conditional rights to former Group CEO
Item 3: To approve the grant of conditional rights over the Company’s ordinary shares under the 2011 and 2012 QBE Long Term Incentive plans to the former Group Chief Executive Officer LTI AWARD AS A % 2011 LTI AWARD OF FIXED REMUNERATION CONDITIONAL RIGHTS ROE and combined Diluted operating Initia
Slide 21: Results of proxy voting for item 3
Results of proxy voting for item 3 Resolution For Open Against Abstain 3 478,638,714 4,021,116 247,468,638 18,342,881 21
Slide 22: Item 4: Retirement allowance for former Group CEO
Item 4: To pay the former Group Chief Executive Officer a retirement allowance 22
Slide 23: Results of proxy voting for item 4
Results of proxy voting for item 4 Resolution For Open Against Abstain 4 437,474,732 3,944,741 281,991,680 25,060,246 23
Slide 24: Item 5: Conditional rights as appointment incentive to Group CEO
Item 5: To approve the grant of conditional rights over the Company’s ordinary shares as an appointment performance incentive to the Group Chief Executive Officer 24
Slide 25: Results of proxy voting for items 5
Results of proxy voting for items 5 Resolution For Open Against Abstain 5 708,808,755 3,999,484 31,639,261 4,400,100 25
Slide 26: Item 6: Conditional rights under 2012 LTI plan to Group CEO
Item 6: To approve the grant of conditional rights over the Company’s ordinary shares under the 2012 QBE Long Term Incentive plan to the Group Chief Executive Officer LTI AWARD AS A % 2012 LTI AWARD OF FIXED REMUNERATION CONDITIONAL RIGHTS ROE and combined Diluted operating Initial EPS ratio Maxim
Slide 27: Results of proxy voting for items 6
Results of proxy voting for items 6 Resolution For Open Against Abstain 6 674,683,680 2,510,251 53,746,927 16,452,312 27
Slide 28: Item 7: Increase aggregate fees for non-executive directors
Item 7: To increase the maximum aggregate fees payable to non-executive directors 28
Slide 29: Results of proxy voting for items 7
Results of proxy voting for items 7 Resolution For Open Against Abstain 7 719,807,883 2,500,280 15,310,074 9,566,911 29
Slide 30: Item 8: Elect a director Mr J A Graf
Item 8: To elect a director Mr J A Graf 30
Slide 31: Results of proxy voting for items 8
Results of proxy voting for items 8 Resolution For Open Against Abstain 8 715,888,026 4,344,973 24,485,921 4,258,225 31
Slide 32: Item 9a: Re-elect Mr D M Boyle as a director
Item 9a: To re- elect Mr D M Boyle as a director 32
Slide 33: Results of proxy voting for items 9a
Results of proxy voting for items 9a Resolution For Open Against Abstain 9a 717,201,907 4,254,531 23,316,324 4,212,733 33
Slide 34: Item 9b: Re-elect Mr J M Green as a director
Item 9b: To re- elect Mr J M Green as a director 34
Slide 35: Results of proxy voting for items 9b
Results of proxy voting for items 9b Resolution For Open Against Abstain 9b 718,552,065 4,264,605 21,961,754 4,207,271 35
Slide 36: Important disclaimer
Important disclaimer This presentation should be read in conjunction with all information which QBE has lodged with the Australian Securities Exchange (“ASX”). Copies of those lodgements are available from either the ASX website www.asx. com.au or QBE’s website www.qbe.com. Prior to making a decisio