QBE Insurance Group

2023 Annual Report

QBE INSURANCE GROUP LIMITED

Contents

SECTION 1:

Overview 

About QBE 

Chair’s message 

Group Chief Executive Officer’s message 

SECTION 2:

Operating and financial review

Strategy 

Financial performance 

Risk management  

Climate‑related risks and opportunities 

SECTION 3:

Governance 

Board of Directors 

Group Executive Committee  

Corporate Governance 

SECTION 4:

Directors’ Report

Directors’ Report 

Remuneration Report  

Auditor's independence declaration  

SECTION 5:

Financial Report 

Financial statements  

Directors’ declaration  

Independent auditor’s report  

SECTION 6:

Additional information 

Shareholder information 

Financial calendar 

Glossary  

About this report

This is the Annual Report for QBE 
Insurance Group Limited (and its 
controlled entities) for the year 
ended 31 December 2023.

This report is our primary report 
to shareholders and includes 
material information about our 
strategy and performance, 
in addition to our remuneration 
report and financial statements 
which have been prepared in 
accordance with the Corporations 
Act 2001 and Australian 
Accounting Standards.

Definitions of key performance 
metrics in section 2 are provided 
in the glossary on pages 156 
to 160. Key metrics disclosed 
on a statutory basis are derived 
from unadjusted components 
of financial statement line items. 
Financial information prepared 
on a management basis has 
not been audited or reviewed 
by QBE’s external auditor. 
A reconciliation between the 
statutory and management result 
is provided on pages 14 to 15.

QBE adopted AASB 17 Insurance 
Contracts from 1 January 2023 
and has restated the comparative 
period. The impacts of adoption 
are detailed in note 8.1.1 of the 
consolidated financial statements 
on page 133.

Unless otherwise stated, 
references in this report to ‘QBE’, 
‘the Group’, ‘we’, ‘us’ and ‘our’ 
refer to QBE Insurance Group 
Limited (and its controlled entities). 
References to ‘the Company’ refer 
to QBE Insurance Group Limited, 
the ultimate parent entity. 

All dollar figures are expressed in 
US dollars unless otherwise stated. 

QBE Insurance Group Limited 
ABN 28 008 485 014

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About this report

This is the Annual Report for QBE 

Insurance Group Limited (and its 

controlled entities) for the year 

ended 31 December 2023.

This report is our primary report 

to shareholders and includes 

material information about our 

strategy and performance, 

in addition to our remuneration 

report and financial statements 

which have been prepared in 

accordance with the Corporations 

Act 2001 and Australian 

Accounting Standards.

Definitions of key performance 

metrics in section 2 are provided 

in the glossary on pages 156 

to 160. Key metrics disclosed 

on a statutory basis are derived 

from unadjusted components 

of financial statement line items. 

Financial information prepared 

on a management basis has 

not been audited or reviewed 

by QBE’s external auditor. 

A reconciliation between the 

statutory and management result 

is provided on pages 14 to 15.

QBE adopted AASB 17 Insurance 

Contracts from 1 January 2023 

and has restated the comparative 

period. The impacts of adoption 

are detailed in note 8.1.1 of the 

consolidated financial statements 

on page 133.

Unless otherwise stated, 

references in this report to ‘QBE’, 

‘the Group’, ‘we’, ‘us’ and ‘our’ 

refer to QBE Insurance Group 

Limited (and its controlled entities). 

References to ‘the Company’ refer 

to QBE Insurance Group Limited, 

the ultimate parent entity. 

All dollar figures are expressed in 

US dollars unless otherwise stated. 

QBE Insurance Group Limited 

ABN 28 008 485 014

Contents

2023 reporting suite

SECTION 1:

Overview 

About QBE 

Chair’s message 

SECTION 2:

Group Chief Executive Officer’s message 

Operating and financial review

Strategy 

Financial performance 

Risk management  

Climate‑related risks and opportunities 

Auditor's independence declaration  

SECTION 3:

Governance 

Board of Directors 

Group Executive Committee  

Corporate Governance 

SECTION 4:

Directors’ Report

Directors’ Report 

Remuneration Report  

SECTION 5:

Financial Report 

Financial statements  

Directors’ declaration  

Independent auditor’s report  

SECTION 6:

Additional information 

Shareholder information 

Financial calendar 

Glossary  

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42

66

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143

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152

155

156

This report forms part of our annual reporting suite which brings 
together information on the Group’s financial and sustainability 
performance for the year, and other disclosures.

Annual Report

Our primary disclosure document 
containing the operating and 
financial review, remuneration 
report, financial statements and 
key governance disclosures. 

Sustainability Report

Contains discussion of QBE’s 
sustainability performance 
and progress, and discloses 
sustainability topics that affect 
QBE and our impacts on society 
and the environment.

Modern Slavery and 
Human Trafficking 
Statement

Describes how we identify, 
assess and address modern 
slavery risks within our 
operations and supply chains.

Investor Report

Provides performance highlights 
and supplementary management 
commentary on the Group’s 
strategic and financial performance 
for the convenience of analysts 
and institutional investors.

Sustainability  
Data Book

Provides data for key 
sustainability metrics 
and trends.

Corporate Governance 
Statement

Describes our corporate 
governance framework, 
including key policies 
and practices.

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Where to find

Business strategy and strategic priorities

Risk management

Corporate governance framework, policies and practices

Board membership, skills and experience

Financial performance

Climate‑related risks and opportunities

Sustainability strategy

Sustainability governance

Sustainability performance

Key: 

  Key messages 

  Comprehensive

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About QBE

QBE Insurance Group Limited (QBE) was founded in Townsville, Queensland in 1886 
and is now headquartered in Sydney and listed on  the Australian Securities Exchange.

QBE is an international insurer and reinsurer offering a diverse portfolio of commercial, casualty and specialty products, personal line 
and risk management solutions. Our diverse product portfolio includes property, motor, crop, public and product liability, professional 
indemnity, workers’ compensation, energy, marine and aviation. We operate across three divisions: North America, Australia Pacific, 
and International.

QBE utilises three major rating agencies and is committed to maintaining its ratings at their current levels, with an A+ S&P rating, 
and more than $30 billion of funds under management. QBE has the financial strength to realise our purpose, and help those around 
us build strength and embrace change to their advantage.

Our purpose: Enabling a more resilient future

How we organise ourselves

3

Divisions

27 

Countries 
of operation

13,479

People

North America

Operating across all 50 states in the United States we 
offer property, casualty, specialty and Crop insurance 
to commercial and farm customers through a limited 
and preferred distribution network and selected 
managing general agents. Product offerings include 
property, financial lines, accident and health, 
workers’ compensation and crop insurance.

International

Australia Pacific

With a market presence across the globe including the United 
Kingdom, Europe, Asia, Canada and through our Lloyd’s 
syndicates, we work closely with appointed brokers to provide 
broad and competitive insurance programs, supplying the 
products, knowledge and expertise to address the needs 
of clients in highly specialised fields. Product offerings 
include property, motor, marine and cargo, financial lines 
and reinsurance through QBE Re.

Operations in Australia, New Zealand and across the Pacific 
including Fiji, French Polynesia and the Solomon Islands. 
We work in partnership with broker and distribution partners 
to support and protect our customers through a broad range 
of commercial, personal and specialty insurance products, 
services and risk management solutions. Product offerings 
include property, motor, householders, farm, liability including 
workers’ compensation, and LMI.

2

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About QBE

QBE Insurance Group Limited (QBE) was founded in Townsville, Queensland in 1886 

and is now headquartered in Sydney and listed on  the Australian Securities Exchange.

QBE is an international insurer and reinsurer offering a diverse portfolio of commercial, casualty and specialty products, personal line 

and risk management solutions. Our diverse product portfolio includes property, motor, crop, public and product liability, professional 

indemnity, workers’ compensation, energy, marine and aviation. We operate across three divisions: North America, Australia Pacific, 

and International.

QBE utilises three major rating agencies and is committed to maintaining its ratings at their current levels, with an A+ S&P rating, 

and more than $30 billion of funds under management. QBE has the financial strength to realise our purpose, and help those around 

us build strength and embrace change to their advantage.

Our purpose: Enabling a more resilient future

How we organise ourselves

3

Divisions

27 

Countries 

of operation

13,479

People

North America

Operating across all 50 states in the United States we 

offer property, casualty, specialty and Crop insurance 

to commercial and farm customers through a limited 

and preferred distribution network and selected 

managing general agents. Product offerings include 

property, financial lines, accident and health, 

workers’ compensation and crop insurance.

International

Australia Pacific

With a market presence across the globe including the United 

Operations in Australia, New Zealand and across the Pacific 

Kingdom, Europe, Asia, Canada and through our Lloyd’s 

including Fiji, French Polynesia and the Solomon Islands. 

syndicates, we work closely with appointed brokers to provide 

We work in partnership with broker and distribution partners 

broad and competitive insurance programs, supplying the 

to support and protect our customers through a broad range 

products, knowledge and expertise to address the needs 

of commercial, personal and specialty insurance products, 

of clients in highly specialised fields. Product offerings 

services and risk management solutions. Product offerings 

include property, motor, marine and cargo, financial lines 

include property, motor, householders, farm, liability including 

and reinsurance through QBE Re.

workers’ compensation, and LMI.

Chair's message

Guided by our 
strong purpose 
and vision

QBE has continued to execute against 
our strategic priorities throughout 2023, 
and I am pleased with the improved 
stability and consistency demonstrated 
in this result.

We recognise geopolitical issues have 
escalated over the year and remain 
extremely complex; with challenging 
impacts on the global economy and  
more tragically, the heartbreaking 
human toll of such conflicts and tensions. 

While global inflationary pressures 
remain elevated, and more persistent 
in select pockets of the economy, there 
have been areas of moderation which 
is encouraging.

QBE is guided by its purpose of enabling 
a more resilient future and we are proud 
to have delivered for our customers, 
communities and shareholders in such 
a dynamic operating environment. 
More than ever, we are reminded of 
the importance of resilience and how 
it is fundamental to our future success. 

Against this backdrop, QBE delivered 
a statutory net profit after tax 
of $1,355 million in 2023 following 
a continuation of exceptional premium 
growth of 10%. Importantly, our capital 
position and balance sheet remain strong. 
Reflecting our confidence in the outlook, 
the Board has declared a final dividend 
of 48 Australian cents per share, bringing 
the total dividends paid in respect of the 
2023 year to 62 Australian cents per 
share. This compares with dividends 
of 39 Australian cents per share for 2022.

As we face an increase in the frequency 
and severity of extreme weather events 

globally, we must collectively learn 
to mitigate their impacts and improve 
our preparedness and responses. 
Our focus remains on keeping people 
and communities as safe as possible 
and reducing the devastating impacts 
that these events can have on all of us.

QBE is committed to the sustainability 
agenda we set in 2022. We continue 
to find ways to partner with our customers 
and suppliers to foster an orderly and 
inclusive transition to a net-zero future.

Our people remain at the heart of QBE. 
To support a sustainable and resilient 
workforce, in March 2023 we created new 
‘belonging’ targets and measurements 
across multiple dimensions of the 
diversity of our people. We were 
externally recognised for this market 
leading work, winning the Most Inclusive 
Workplace at the Australian HR Institute 
(AHRI) Awards. 

As we plan for the future, building talent 
and succession is a key focus for QBE, 
at all levels of the enterprise. We have 
strengthened our pipeline of talent and 
succession and benefitted from this 
strong commitment with a number of 
internal executive appointments in 2023.

Board renewal remains critical to the 
stewardship of QBE and we were pleased 
to welcome Peter Wilson, Steve Ferguson 
and Penny James as Independent 
Non-Executive Directors during 2023.

Looking ahead

Our Vision of being the most consistent 
and innovative partner demands 
that QBE is future ready. Cognisant 
of this, we continue to take advantage 
of emerging technologies, such as 
artificial intelligence (AI), to enhance 
our operations. We also continue 
to invest in protecting data privacy 
in an environment where cyber-related 
challenges are increasingly prevalent. 

QBE has a strong history of supporting 
customers for over 137 years, and in 2023 
we were proud to celebrate 50 years 
of continuous trading on the Australian 
Securities Exchange (ASX).

Under the leadership of Andrew Horton 
and the Group Executive Committee, 
QBE has executed strongly against 
our strategic priorities, with a global 
team of over 13,000 people who are 
united behind our Purpose and Vision. 
I thank all of our team for their focus and 
dedication delivering for our shareholders, 
customers and our communities.

On behalf of the Board, I also thank you, 
our shareholders, for your continued 
support of QBE.

Mike Wilkins AO

Chair

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4

Group Chief Executive Officer's message

Demonstrating 
resilience 
in a complex 
environment

The operating environment has remained 
dynamic in 2023, given the complex 
geopolitical landscape and challenges 
relating to inflation. Against this backdrop 
I am pleased with the improved resilience 
in the business, as we remain focused 
on building greater consistency.

Recent years have demanded the need for organisations 
to respond and steer through complex circumstances. Our QBE 
teams around the world continue to demonstrate their commitment 
to our customers, and I am incredibly proud of their enthusiasm 
in our purpose of enabling a more resilient future.

Our efforts over the near term will continue to concentrate 
around resilience and reducing volatility, which should drive more 
consistent outcomes for our people, customers and stakeholders. 
We remain focused on delivering better performance in 
North America; and despite an unsatisfactory result this 
period, we have made the business simpler, terminated 
poorer performing property relationships, and performance 
is expected to improve with the run-off of non-core lines.

I am pleased with our internal appointments to the Group 
Executive Committee during the year. In September 2023, 
Peter Burton, who has over 15 years with QBE in underwriting 
and management, was appointed as Group Chief Underwriting 
Officer; and Julie Wood was appointed Chief Executive Officer, 
North America.

Business performance

Financial performance improved in the period, and QBE 
is demonstrating greater consistency and resilience. Our Group 
adjusted cash return on equity of 16.0% improved materially 
from the prior year.

Our combined operating ratio of 95.2% improved from 95.9% in 
the prior year; however this missed our original plan, largely due 

to short-tail prior year reserve deterioration, and inflationary 
pressure across a small group of portfolios.

Reducing volatility remains a primary focus, and we have made 
good progress this year. Our property catastrophe exposure 
has undergone a dramatic recalibration, and will benefit from 
recent portfolio terminations plus material improvement in rate 
and terms.

Markets remain attractive, and we achieved gross written 
premium growth of 10%, driven by premium rate increases 
of 9.7%, which continue to compound. 

We take comfort from the general stability in long-tail 
reserves in the year, with the reserve transaction completed 
in 1H23, a significant milestone in reducing potential reserve 
volatility. With global insured losses of around $120 billion, 
it is encouraging to see our catastrophe costs land below 
allowance for the year.

Our North America division delivered a combined operating 
ratio of 103.7%. While performance will improve with the 
run-off of non-core lines, we remain focused on driving 
incremental performance improvement in our core segments.

Higher interest rates have supported a strong investment result 
for the period, and continue to suggest a positive outlook for 
returns in 2024.

For detailed discussion of Group and divisional performance, 
please refer to pages 8 to 15 of this report.

4

Group Chief Executive Officer's message

Demonstrating 

resilience 

in a complex 

environment

The operating environment has remained 

dynamic in 2023, given the complex 

geopolitical landscape and challenges 

relating to inflation. Against this backdrop 

I am pleased with the improved resilience 

in the business, as we remain focused 

on building greater consistency.

Recent years have demanded the need for organisations 

to short-tail prior year reserve deterioration, and inflationary 

to respond and steer through complex circumstances. Our QBE 

pressure across a small group of portfolios.

teams around the world continue to demonstrate their commitment 

to our customers, and I am incredibly proud of their enthusiasm 

in our purpose of enabling a more resilient future.

Reducing volatility remains a primary focus, and we have made 

good progress this year. Our property catastrophe exposure 

has undergone a dramatic recalibration, and will benefit from 

Our efforts over the near term will continue to concentrate 

recent portfolio terminations plus material improvement in rate 

around resilience and reducing volatility, which should drive more 

and terms.

consistent outcomes for our people, customers and stakeholders. 

We remain focused on delivering better performance in 

North America; and despite an unsatisfactory result this 

period, we have made the business simpler, terminated 

Markets remain attractive, and we achieved gross written 

premium growth of 10%, driven by premium rate increases 

of 9.7%, which continue to compound. 

poorer performing property relationships, and performance 

We take comfort from the general stability in long-tail 

is expected to improve with the run-off of non-core lines.

reserves in the year, with the reserve transaction completed 

I am pleased with our internal appointments to the Group 

Executive Committee during the year. In September 2023, 

Peter Burton, who has over 15 years with QBE in underwriting 

and management, was appointed as Group Chief Underwriting 

in 1H23, a significant milestone in reducing potential reserve 

volatility. With global insured losses of around $120 billion, 

it is encouraging to see our catastrophe costs land below 

allowance for the year.

Officer; and Julie Wood was appointed Chief Executive Officer, 

Our North America division delivered a combined operating 

North America.

Business performance

Financial performance improved in the period, and QBE 

is demonstrating greater consistency and resilience. Our Group 

adjusted cash return on equity of 16.0% improved materially 

returns in 2024.

from the prior year.

Our combined operating ratio of 95.2% improved from 95.9% in 

the prior year; however this missed our original plan, largely due 

ratio of 103.7%. While performance will improve with the 

run-off of non-core lines, we remain focused on driving 

incremental performance improvement in our core segments.

Higher interest rates have supported a strong investment result 

for the period, and continue to suggest a positive outlook for 

For detailed discussion of Group and divisional performance, 

please refer to pages 8 to 15 of this report.

Strategy in action

Our six strategic priorities remain consistent. We are focused 
on having the right capabilities, people and technology to deliver our 
strategy, drive competitive advantage and support our customers. 
Pages 6 and 7 of this report detail our progress and achievements 
against these priorities, along with future focus areas. 

Our strategy to improve performance in North America remains 
a primary focus for the Board and management, and we are tasked 
to build a business which delivers performance that is consistent 
with our Group targets. We have renewed our focus on building 
and strengthening relationships with our major trading partners, 
and are confident we can successfully manage our priorities for the 
division. This includes the run-off of non-core lines, improvement 
in middle-market performance, driving growth in adjacent specialties 
and achieving better balance across our three core insurance 
segments of Crop, Speciality and Commercial.

Portfolio Optimisation and Sustainable Growth priorities play 
a critical role in our ambition to deliver a consistent Group combined 
operating ratio in the low to mid 90s. Our Portfolio Optimisation 
initiatives in 2023 focused on our property portfolio, where we 
have improved balance across the Group and reduced potential 
earnings volatility.

We want to accelerate QBE’s data-centric capabilities and expand 
our ability to support customer resilience through new technologies, 
such as AI. We will continue to leverage technology to deliver better 
outcomes for customers through our Modernisation strategic priority 
and QBE Ventures initiatives. 

Delivering against the strategic priorities outlined at the beginning 
of 2022 is uniting our enterprise and we have made good progress. 
We enter 2024 with a consistent set of strategic priorities and strong 
momentum across the enterprise.

Supporting our customers, 
communities and people 

People are at the heart of our business, and it is the actions we take 
to support our customers, communities and people that underline 
this commitment. As a global insurer, QBE’s portfolio is broad and 
diverse, helping customers recover from a range of unexpected 
events. We are proud of our dedicated people, who are experts 
in their fields across our business, and are there for our customers 
and partners around the world.

QBE has been there for families, businesses and communities who 
have been impacted by extreme weather events. This year there 
were a number of natural catastrophe events globally, including the 
flooding and cyclone events in New Zealand, earthquakes in Turkey 
and Syria and a series of powerful convective storms across the 
United States and Europe.

I am encouraged by the progress we are making on our 
sustainability agenda and integrating sustainability into our business. 
Importantly, from 2024 our long-term incentive target will have an 
element directly tied to our sustainability performance. We continue 
to progress against our three sustainability focus areas and further 
details can be found in our Sustainability Report, Sustainability Data 
Book and pages 20 to 33 of this report. In October 2023, the QBE 
Foundation was recognised at the Australian Workplace Giving 
Awards and received three Runners Up Awards for Best Corporate 
and Charity Partnership for our Global Disaster Relief and Resilience 
Partnership, Best Grants Program and Best Innovation for QGiving 
(an employee fundraising and volunteering platform).

Outlook

Over the last two years, QBE has been 
focused on delivering greater resilience 
and consistency. I see meaningful 
progress across the business, 
and I am confident that we can drive 
further progress against our strategic 
priorities in 2024.

The alignment and connectivity 
across the enterprise has improved 
considerably in my time at QBE and 
we are motivated to deliver on our 
plan, better leverage our unique 
global platform and ultimately 
realise our potential.

We expect trading conditions 
to remain favourable in the year 
ahead. Challenges associated with 
inflation, geopolitics and climate 
should encourage further discipline, 
and we expect premium rates should 
remain supportive.

Against this backdrop, we forecast 
constant currency gross written 
premium growth in the mid-single 
digits for 2024, and a Group combined 
operating ratio of around 93.5%. 
Elevated interest rates should continue 
to support strong investment returns.

Andrew Horton

Group Chief Executive Officer

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6

Strategy

Our purpose is to enable a more resilient future. As an organisation, we have been 
helping our customers grow, innovate, explore, prepare and recover from setbacks 
since 1886. Our strategy should ensure we build on this legacy. 

Our strategic priorities 

  Portfolio optimisation

Strive for both improved and 
more consistent risk-adjusted 
returns by actively managing 
portfolio mix and volatility

WHAT WE ACHIEVED IN 2023

FUTURE FOCUS

•  Considerable improvement in property 
portfolio quality driven by portfolio 
exits, improved terms and targeted 
rate increases in excess of 20% across 
standalone property

•  Completion of transformational reserve 
transaction which de-risked the Group’s 
exposure to long-tail reserves totalling 
~$1.9 billion

•  Continue to execute against 

medium-term portfolio mix targets, 
and drive incremental reduction 
in potential volatility
Incorporate evolving view of 
insurance-associated emissions into 
medium-term portfolio mix targets

• 

  Sustainable growth

Achieve consistent growth 
through innovative risk 
solutions, leveraging improved 
digital capability and existing 
skill-set across the enterprise

•  Strong momentum across a number 
of growth focus areas including 
reinsurance, global specialty and 
QBE’s UK commercial business
•  Progressed a number of growth 

opportunities including cyber, and 
added capability in adjacent specialties 
in North America 

•  Become an easier partner to do 
business with and build deeper 
distribution relationships around 
our growth focus areas
•  Focus investment in target 
growth segments to build 
and enhance capability

   Bring the 
enterprise together

Simplify what we do and 
achieve greater consistency 
across the enterprise. 
Explore new ways to better 
leverage our global footprint 
and scale

   Modernise 
our business

Strategically innovate and 
invest in differentiating 
capabilities that make things 
easier for our customers, 
partners and people

  Our people

Empower a sustainable and 
diverse pipeline of leaders, 
while becoming an employer 
of choice in our markets

• 

Improved enterprise alignment has 
supported the pace of property initiatives, 
the aforementioned reserve transaction, 
and a global approach to new 
growth opportunities

•  Commenced a new corporate branding 

project to build on the deep relationships 
and strong presence cultivated in our 
markets over the past 130+ years 

•  Continue to identify enterprise 

opportunities unlocked through better 
sharing of knowledge and relationships

•  Further expand our underwriting 
capabilities to create a globally 
consistent approach that supports 
the resilience of our customers in an 
increasingly complex risk environment

•  Commenced a review to assess 

opportunities for simplification and 
operational efficiency to ensure 
QBE is future fit, and investment 
spend is optimised

•  Deepened application of AI across 
underwriting and operations, with 
numerous additional future use 
cases identified

•  Further progress against data strategy 
including acceleration of AI integration 
will be a key focus for 2024

•  Support sustainable growth agenda 
through continued enhancement 
of underwriting tools, process 
and data capability

•  QShare, QBE’s new employee share 

plan, successfully launched, with 27% 
of eligible employees enrolling 

•  Launched innovative new targets focused 
on equal sense of belonging across the 
dimensions of gender, ethnicity, disability 
status and LGBTIQ+ identification 

•  Modernise approach to workforce 
planning through improved global 
workforce processes and integrated tools
Increase the diversity of our workforce 
in line with targets including increasing 
representation of women in all 
leadership roles

• 

  Our culture

Be a purpose-led organisation, 
and ensure our purpose 
is visible every day, in all our 
interactions. Strengthen the 
alignment and collaboration 
across the enterprise

•  Successful launch of QGiving, QBE’s 

•  Continue to embed our purpose 

employee fundraising and volunteering 
platform that brings our people together 
with our community partners

•  Launched QBE’s Safety to Speak Up 
Playbook, equipping all employees 
to build psychological safety in support 
of participation and innovation

through decision-making and team 
exploration activities

•  Strengthen and further embed Safety 
to Speak Up practices in how work 
gets done at QBE

6

Strategy

Our purpose is to enable a more resilient future. As an organisation, we have been 

helping our customers grow, innovate, explore, prepare and recover from setbacks 

since 1886. Our strategy should ensure we build on this legacy. 

Our strategic priorities 

  Portfolio optimisation

Strive for both improved and 

more consistent risk-adjusted 

returns by actively managing 

portfolio mix and volatility

WHAT WE ACHIEVED IN 2023

FUTURE FOCUS

•  Considerable improvement in property 

•  Continue to execute against 

portfolio quality driven by portfolio 

exits, improved terms and targeted 

medium-term portfolio mix targets, 

and drive incremental reduction 

rate increases in excess of 20% across 

in potential volatility

standalone property

•  Completion of transformational reserve 

transaction which de-risked the Group’s 

exposure to long-tail reserves totalling 

~$1.9 billion

• 

Incorporate evolving view of 

insurance-associated emissions into 

medium-term portfolio mix targets

  Sustainable growth

Achieve consistent growth 

through innovative risk 

solutions, leveraging improved 

digital capability and existing 

skill-set across the enterprise

•  Strong momentum across a number 

•  Become an easier partner to do 

of growth focus areas including 

reinsurance, global specialty and 

QBE’s UK commercial business

business with and build deeper 

distribution relationships around 

our growth focus areas

•  Progressed a number of growth 

opportunities including cyber, and 

added capability in adjacent specialties 

•  Focus investment in target 

growth segments to build 

and enhance capability

in North America 

   Bring the 

enterprise together

Simplify what we do and 

achieve greater consistency 

across the enterprise. 

Explore new ways to better 

leverage our global footprint 

and scale

   Modernise 

our business

Strategically innovate and 

invest in differentiating 

capabilities that make things 

easier for our customers, 

partners and people

  Our people

Empower a sustainable and 

diverse pipeline of leaders, 

while becoming an employer 

of choice in our markets

• 

Improved enterprise alignment has 

•  Continue to identify enterprise 

supported the pace of property initiatives, 

the aforementioned reserve transaction, 

opportunities unlocked through better 

sharing of knowledge and relationships

and a global approach to new 

growth opportunities

•  Commenced a new corporate branding 

project to build on the deep relationships 

and strong presence cultivated in our 

markets over the past 130+ years 

•  Further expand our underwriting 

capabilities to create a globally 

consistent approach that supports 

the resilience of our customers in an 

increasingly complex risk environment

•  Commenced a review to assess 

opportunities for simplification and 

operational efficiency to ensure 

QBE is future fit, and investment 

spend is optimised

•  Deepened application of AI across 

underwriting and operations, with 

numerous additional future use 

cases identified

•  Further progress against data strategy 

including acceleration of AI integration 

will be a key focus for 2024

•  Support sustainable growth agenda 

through continued enhancement 

of underwriting tools, process 

and data capability

•  QShare, QBE’s new employee share 

plan, successfully launched, with 27% 

of eligible employees enrolling 

•  Modernise approach to workforce 

planning through improved global 

workforce processes and integrated tools

•  Launched innovative new targets focused 

• 

Increase the diversity of our workforce 

on equal sense of belonging across the 

dimensions of gender, ethnicity, disability 

status and LGBTIQ+ identification 

in line with targets including increasing 

representation of women in all 

leadership roles

•  Successful launch of QGiving, QBE’s 

•  Continue to embed our purpose 

  Our culture

Be a purpose-led organisation, 

and ensure our purpose 

is visible every day, in all our 

interactions. Strengthen the 

alignment and collaboration 

across the enterprise

employee fundraising and volunteering 

platform that brings our people together 

with our community partners

•  Launched QBE’s Safety to Speak Up 

Playbook, equipping all employees 

to build psychological safety in support 

of participation and innovation

through decision-making and team 

exploration activities

•  Strengthen and further embed Safety 

to Speak Up practices in how work 

gets done at QBE

Sustainability 

As an insurer, we explore the actions we can take to control, impact and influence outcomes relating to the most material sustainability 
topics as identified in our materiality assessment which considers impacts on QBE and our impacts on society and the environment. 
To address the stakeholder expectations on material topics, we set initiatives and targets for each of the three focus areas (Focus Areas) 
of our sustainability strategy in our Sustainability Scorecard. 

OUR AREAS OF SUSTAINABILITY FOCUS

WHAT WE HAVE ACHIEVED IN 2023

Focus Area 1  Foster an orderly and inclusive transition 
to a net‑zero economy

We support an orderly and inclusive transition to a net-zero emissions economy, 
aligned with limiting warming to 1.5 degrees celsius by the end of 2100. 
We recognise the importance of addressing climate change and incorporating 
climate-related risks and opportunities into our decision-making, facilitating 
a resilient future for our business and our customers.

This Focus Area recognises that the transition to a net-zero economy and the 
reduction in emissions will help to reduce the risks associated with climate 
change that impact us and our customers, communities and economies. 
However, we understand that a successful transition will take the collective 
effort of multiple stakeholders, including governments, regulators, the finance 
sector and other industries, businesses, individuals and communities.

We continue to work toward our ambitions of a net-zero underwriting portfolio 
by 2050, a net-zero investment portfolio by 2050 and net zero in our own 
operations by 2030.

100% electricity use across QBE’s 
offices certified as renewable 1

75%

24%

reduction of Scope 1 and 2 
carbon emissions since 2018
Target of 30% by 2025

energy reduction
Target to reduce energy use by  
25% by 2025 (from 2019 levels)

4.6% Climate Solutions investments

Target 5% of the total  
investment portfolio by 2025

ENGAGEMENTS IN 2023:

 100% external fund managers across 
our investment portfolio, 
and 20 highest emitters in our 
investment grade corporate 
credit portfolio

Focus Area 2  Enable a sustainable and resilient workforce

The culture and capability of our people are drivers of value for QBE. A sustainable 
and resilient workforce is underpinned by how we engage and connect our people 
to our purpose and vision. Investing in our people’s career development, and 
supporting flexibility and wellbeing, can allow us to continue to attract and retain 
the best talent.

This second Focus Area recognises the important role our people and culture 
plays in attracting and retaining talent over the long term. It also recognises 
the importance of our people’s technical knowledge, skills and capabilities 
in supporting our business and customers, and addressing the risks and 
opportunities that arise across our globally diverse business.

40%

55%

Women on Group Board 
Target of 40% by 2025 (achieved)

Women on Group Executive 
Committee (GEC)
Target of 40:40:20 (40% women, 40% men, 
20% any gender) by 2023 (achieved)

40%

Women in Leadership 2
Target of 40% by 2025 (achieved)

Achieved target of equal sense of 
belonging in dimensions of LGBTIQ+ 
identification and ethnicity

Focus Area 3  Partner for growth through innovative, 
sustainable and impactful solutions

Our landscape is changing, presenting opportunities to innovate and partner 
on impactful solutions through our investments, supplier and broker relationships, 
the QBE Foundation and QBE Ventures. We can explore ways to co-create 
solutions to meet the changing needs of our customers, and support communities 
affected by climate impacts and the net-zero transition.

At QBE, we want to grow our business into the future and seek opportunities 
to work with other organisations to address challenges together. We believe 
that most solutions will come from working with our customers, communities 
and other stakeholders to understand their risks and challenges and collaborate 
on innovative solutions. Across many parts of our business, from underwriting 
and investments to procurement, from our QBE Foundation to QBE Ventures, 
we work with others who may be seeking to solve similar problems or reduce 
or better manage risk.

$1.6BN

108

47%

market value of  
Premiums4Good 
investments
Target of $2 billion by 2025

number of securities 
of Premiums4Good 
investments

increased Corporate 
Community investment 
by QBE Foundation 
since 2022

1   Based on the RE100 Climate Group’s materiality threshold guidance which excludes countries with small electricity loads (<100MWh/year 
and up to a total of 500MWh/year) and where it is not feasible to source renewable electricity via any credible sourcing options. We meet 
our RE100 commitment through a combination of contracts with electricity suppliers and purchasing unbundled energy attribute certificates.

2  Defined as the next three tiers below the GEC. 

7

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8

Financial performance

QBE reported a statutory profit after tax attributable to ordinary equity holders 
of the Company of $1,355 million for the year ended 31 December 2023 compared 
with $587 million for the prior year. 

Summary financial performance

FOR THE YEAR ENDED 31 DECEMBER

Insurance revenue
Reinsurance expenses
Insurance service result
Insurance operating result
Net investment income (loss)
Income tax expense
Profit after income tax attributable to ordinary equity holders
Key metrics
Gross written premium
Net claims ratio
Net commission ratio
Expense ratio
Combined operating ratio

US$M

US$M

US$M

US$M

US$M

US$M

US$M

US$M

%

%

%

%

MANAGEMENT

STATUTORY

2023

 20,825 
(4,226)
 984 
 796 
 1,374 
(473)
 1,355 

 21,748 
 65.1 
 18.3 
 11.8 
 95.2 

RESTATED 
2022

 18,834 
(3,746)
 766 
 614 
570
(81)
 587 

 19,993 
 66.0 
 18.2 
 11.7 
 95.9 

2023

 20,826 
(4,848)
 1,503 
 1,315 
 1,369 
(473)
 1,355 

 21,748 
 60.2 
 19.4 
 12.2 
 91.8 

RESTATED 
2022

 18,904 
(3,850)
 971 
 759 
(773)
(81)
 587 

 19,993 
 64.1 
 18.8 
 12.1 
 95.0 

Unless otherwise stated, discussion of performance in this section of the report is on a management basis which is consistent 
with how performance is assessed internally. The management basis reflects adjustments to the statutory result to provide greater 
transparency over the underlying drivers of the Group's performance. A reconciliation between the management basis and the 
statutory result is provided on pages 14 and 15. 

The Group reported a combined operating ratio of 95.2% which improved from 95.9% in the prior year, and includes a 0.6% impact 
from the upfront cost of the $1.9 billion reserve transaction announced in February 2023. The result was supported by attractive 
premium rate increases, which accelerated notably in property and reinsurance lines. As a result, aggregate rate increases trended 
at or above inflation across most lines, resulting in further ex-cat claims ratio improvement. 

The year was characterised by a significant reinsurance supply-demand imbalance, particularly for lower attaching catastrophe 
coverage. Associated challenges were compounded by record significant secondary peril activity with 2023 industry insured losses of 
around $120 billion. Against this backdrop, it was pleasing to see current year catastrophe costs contained well within allowance. The 
result was however impacted by meaningful catastrophe related short-tail reserve strengthening, reflecting late-2022 events including 
winter storm Elliott and floods in Australia.

Total investment income, excluding fixed income losses from changes in risk-free rates, improved to $1,374 million or a return of 4.7%, 
compared with $570 million or 2.0% in the prior year, supported by higher interest rates across the core fixed income portfolio.

The broader result also included a $25 million impairment of QBE’s North American owner occupied office premises.

QBE’s balance sheet remains strong. The indicative APRA PCA multiple increased to 1.82x from 1.79x at 31 December 2022, 
and is at the upper end of our 1.6–1.8x target range. Allowing for the payment of the 2023 final dividend of 48 Australian cents, 
the pro-forma PCA multiple would decline to 1.74x. Capital released from the $1.9 billion reserve transaction added around 6 points 
to the PCA multiple, and supported growth in the period.

QBE adopted AASB 17 Insurance Contracts from 1 January 2023. The new standard is applied retrospectively, resulting in 
a restatement of the comparative period. The impacts of adoption are detailed in note 8.1.1 of the consolidated financial statements 
on page 133. Definitions of key metrics, including how they are calculated, are provided in the glossary from pages 156 to 160. As a 
result of changes to the presentation of insurance line items introduced by AASB 17, the key metrics used by QBE to manage and 
assess underwriting performance are derived from components that are no longer separately presented in the financial statements. 
An analysis of the insurance operating result by these components is provided on page 15.

8

9

Financial performance

Underwriting performance 

QBE reported a statutory profit after tax attributable to ordinary equity holders 

of the Company of $1,355 million for the year ended 31 December 2023 compared 

Unless otherwise stated, discussion of performance is on a management basis. 
A reconciliation to the equivalent statutory result is provided on page 14.

with $587 million for the prior year. 

Summary financial performance

FOR THE YEAR ENDED 31 DECEMBER

Insurance revenue

Reinsurance expenses

Insurance service result

Insurance operating result

Net investment income (loss)

Income tax expense

Key metrics

Gross written premium

Net claims ratio

Net commission ratio

Expense ratio

Combined operating ratio

Profit after income tax attributable to ordinary equity holders

MANAGEMENT

STATUTORY

2023

 20,825 

(4,226)

 984 

 796 

 1,374 

(473)

 1,355 

 65.1 

 18.3 

 11.8 

 95.2 

RESTATED 

2022

 18,834 

(3,746)

 766 

 614 

570

(81)

 587 

 66.0 

 18.2 

 11.7 

 95.9 

2023

 20,826 

(4,848)

 1,503 

 1,315 

 1,369 

(473)

 1,355 

 60.2 

 19.4 

 12.2 

 91.8 

RESTATED 

2022

 18,904 

(3,850)

 971 

 759 

(773)

(81)

 587 

 64.1 

 18.8 

 12.1 

 95.0 

 21,748 

 19,993 

 21,748 

 19,993 

US$M

US$M

US$M

US$M

US$M

US$M

US$M

US$M

%

%

%

%

Unless otherwise stated, discussion of performance in this section of the report is on a management basis which is consistent 

with how performance is assessed internally. The management basis reflects adjustments to the statutory result to provide greater 

transparency over the underlying drivers of the Group's performance. A reconciliation between the management basis and the 

statutory result is provided on pages 14 and 15. 

The Group reported a combined operating ratio of 95.2% which improved from 95.9% in the prior year, and includes a 0.6% impact 

from the upfront cost of the $1.9 billion reserve transaction announced in February 2023. The result was supported by attractive 

premium rate increases, which accelerated notably in property and reinsurance lines. As a result, aggregate rate increases trended 

at or above inflation across most lines, resulting in further ex-cat claims ratio improvement. 

The year was characterised by a significant reinsurance supply-demand imbalance, particularly for lower attaching catastrophe 

coverage. Associated challenges were compounded by record significant secondary peril activity with 2023 industry insured losses of 

around $120 billion. Against this backdrop, it was pleasing to see current year catastrophe costs contained well within allowance. The 

result was however impacted by meaningful catastrophe related short-tail reserve strengthening, reflecting late-2022 events including 

winter storm Elliott and floods in Australia.

Total investment income, excluding fixed income losses from changes in risk-free rates, improved to $1,374 million or a return of 4.7%, 

compared with $570 million or 2.0% in the prior year, supported by higher interest rates across the core fixed income portfolio.

The broader result also included a $25 million impairment of QBE’s North American owner occupied office premises.

QBE’s balance sheet remains strong. The indicative APRA PCA multiple increased to 1.82x from 1.79x at 31 December 2022, 

and is at the upper end of our 1.6–1.8x target range. Allowing for the payment of the 2023 final dividend of 48 Australian cents, 

the pro-forma PCA multiple would decline to 1.74x. Capital released from the $1.9 billion reserve transaction added around 6 points 

to the PCA multiple, and supported growth in the period.

QBE adopted AASB 17 Insurance Contracts from 1 January 2023. The new standard is applied retrospectively, resulting in 

a restatement of the comparative period. The impacts of adoption are detailed in note 8.1.1 of the consolidated financial statements 

on page 133. Definitions of key metrics, including how they are calculated, are provided in the glossary from pages 156 to 160. As a 

result of changes to the presentation of insurance line items introduced by AASB 17, the key metrics used by QBE to manage and 

assess underwriting performance are derived from components that are no longer separately presented in the financial statements. 

An analysis of the insurance operating result by these components is provided on page 15.

Net insurance revenue

Gross written premium

Gross written premium increased 9% on a headline basis to $21,748 million from $19,993 million in the prior year. On a constant 
currency basis, gross written premium increased 10% as a result of strong premium rate increases and targeted new business 
growth, partially offset by deliberate property portfolio exits in North America and Australia, and reduced exposure across other 
property lines. Excluding Crop, gross written premium growth was 9% on the same basis. The Group achieved an average renewal 
premium rate increase of 9.7% compared with 7.9% in the prior year, driven by strong rate increases in property classes and 
favourable markets for QBE Re, alongside softening rates in financial lines. Premium rate changes exclude North America Crop 
and Australian compulsory third party motor (CTP).

Reinsurance expenses

Headline reinsurance expenses increased 13% to $4,226 million from $3,746 million in the prior year. Much of the increase relates 
to Crop, where the majority of growth in the portfolio was ceded to the Federal reinsurance scheme, in an effort to manage 
net retention and earnings volatility. Reinsurance expenses also included a charge of $101 million, representing the upfront cost 
of the $1.9 billion reserve transaction completed in the first half of 2023.

Net insurance revenue

Group net insurance revenue increased 11% on a constant currency basis, slightly higher than the growth in gross written premium. 
This largely reflects the earn-through of strong premium rate increases in recent periods. The upfront cost associated with the 
aforementioned reserve transaction was incurred in our North America and International business segments.

Net claims

The net claims ratio decreased to 65.1% from 66.0% in 2022. The result was driven by improvement in the ex-cat claims ratio, 
partially offset by largely catastrophe related adverse prior year development. Current year catastrophe costs trended favourably 
relative to allowance, following more benign experience through the second half. 

The ex-cat claims ratio decreased to 59.1% from 60.5% in the prior year. The result included the current year risk adjustment 
of $518 million, compared to $591 million in the prior year. Excluding risk adjustment, the ex-cat claims ratio reduced to 56.0% from 
56.6% in the prior year. The industry continues to exhibit good discipline in response to elevated inflation, where rate increases 
remained at or above observed inflation across most lines. While inflation is easing in some lines, it remains more persistent across 
a small number of portfolios including Australia Pacific personal lines, and North America non-core lines and Accident & Health. 
While evidence of higher claims inflation across many longer tail classes is limited, QBE remains attuned to the potential for lags 
and persistency of inflation in these lines, alongside the risks posed by social inflation. 

The net cost of catastrophe claims increased marginally to $1,092 million or 6.6% of net insurance revenue, from $1,060 million 
or 7.0% in the prior year. The result was below the Group’s catastrophe allowance of $1,175 million. Natural catastrophe costs were 
driven by significant secondary peril activity, including the New Zealand floods, a series of North American convective storm events 
through the first half, and meaningful storm and flood activity in Europe and Australia in the second half. 

QBE strengthened the central estimate of outstanding claims by $225 million, which largely reflected adverse development on 
short-tail lines. This compares to $141 million adverse in the prior year. The outcome was driven by late development on end-2022 
catastrophe events including winter storm Elliott in North America and floods in Australia. In addition, the North America result was 
impacted by adverse development of $30 million in Crop. These impacts were partially offset by favourable development in LMI and 
CTP in Australia Pacific, and QBE Re. The aforementioned reserve strengthening was more than offset by favourable development 
of  $320 million related to the unwind of risk adjustment from prior accident years, a decrease from $369 million in the prior year. 
This resulted in favourable prior accident year claims development of $95 million or 0.6% of net insurance revenue, decreasing 
from $228 million or 1.5% in the prior year.

Commission and expenses

The net commission ratio increased to 18.3% from 18.2% in the prior year, primarily due to business mix changes, where the impact 
from quota share reinsurance ceding commissions is now recorded within reinsurance income under AASB 17. 

The Group’s expense ratio of 11.8% was a slight increase from 11.7% last year. This reflected constant currency expense growth 
of 12%, which was balanced by strong net revenue growth. Elevated expense growth reflected investment in our modernisation 
program, the cost of targeted growth initiatives and the impact of elevated inflation across the broader expense base.

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10

Divisional underwriting performance 

Key metrics are defined in the glossary from pages 156 to 160. Key metrics  
disclosed on a statutory basis are derived from unadjusted components 
of financial statement line items. 

North America 

Gross written premium increased by 4% to $7,555 million, with strong premium rate increases and targeted organic growth partially 
offset by the run-off of non-core lines. Excluding premium rate increases and Crop, premium declined by 12% mainly reflecting 
the run-off of non-core lines. On the same basis and excluding this drag, premium growth was 4%. 

North America reported a combined operating ratio of 103.7%, which compares to 99.5% in the prior year. The ex-cat claims ratio 
improved by 0.2% to 65.7%, or increased by 0.2% when excluding risk adjustment. This reflected inflationary pressures observed 
in Accident & Health, alongside challenges in non-core lines, partially offset by improvement in middle-market and property classes. 
Net catastrophe claims of $234 million or 4.9% of net insurance revenue were mainly driven by convective storm and flood events 
in the first half of 2023, and compared favourably to 5.4% in the prior year. Catastrophe experience was more benign through the 
second half. Adverse prior year central estimate development of $200 million or 4.2% compared with 0.9% in the prior year, and was 
driven predominantly by short-tail lines, including adverse development on winter storm Elliott from late-2022, and $30 million in Crop.

The current accident year Crop combined operating ratio was 96.6%, slightly higher than expectations primarily due to lower 
commodity prices and drought across several States.

FOR THE YEAR ENDED 31 DECEMBER

Key underwriting metrics
Gross written premium
Net insurance revenue
Net claims ratio
Net commission ratio
Expense ratio
Combined operating ratio

MANAGEMENT1

STATUTORY

2023

 7,555 
 4,790 
 73.0 
 21.6 
 9.1 
 103.7 

RESTATED 
2022

 7,280 
 4,641 
 68.9 
 21.4 
 9.2 
 99.5 

2023

 7,555 
 4,432 
 70.3 
 22.6 
 9.8 
 102.7 

RESTATED 
2022

 7,280 
 4,435 
 67.8 
 22.3 
 9.7 
 99.8 

US$M

US$M

%

%

%

%

1  Adjusted for subsequent impacts of in-force reinsurance loss portfolio transfer transactions (LPT), underlying prior accident year development 

(PYD) adjustments relating to Crop and the inclusion of unwind of discount on claims.

International 

Gross written premium increased by 17% in constant currency to $8,802 million, reflecting an acceleration in rate increases for 
property and reinsurance lines, and continued execution against a number of multi-year growth opportunities. Growth was achieved 
across most segments, led by QBE Re and International Markets.

International reported a combined operating ratio of 89.5%, which compares with 94.8% in the prior year. The ex-cat claims ratio 
improved by 3.0% to 54.3%, or 1.6% excluding the risk adjustment. This strong result reflects the benefit from aggregate rate 
increases which continue to track at or above inflation, and benign large claims experience. Adverse prior year central estimate 
development of $57 million or 0.8%, improved from 2.4% in the prior year. Adverse experience in marine and International liability 
was partially offset by releases in QBE Re.

FOR THE YEAR ENDED 31 DECEMBER

Key underwriting metrics
Gross written premium
Net insurance revenue
Net claims ratio
Net commission ratio
Expense ratio
Combined operating ratio

MANAGEMENT1

STATUTORY

2023

 8,802 
 6,921 
 60.0 
 17.9 
 11.6 
 89.5 

RESTATED 
2022

 7,502 
 5,871 
 65.1 
 17.9 
 11.8 
 94.8 

2023

 8,802 
 6,643 
 54.2 
 18.7 
 12.1 
 85.0 

RESTATED 
2022

 7,502 
 5,939 
 63.2 
 17.7 
 11.6 
 92.5 

US$M

US$M

%

%

%

%

1  Adjusted for subsequent impacts of in-force reinsurance LPT, underlying PYD adjustments relating to premium and periodic payment order 

(PPO) liabilities and the inclusion of unwind of discount on claims.

10

11

Divisional underwriting performance 

Key metrics are defined in the glossary from pages 156 to 160. Key metrics  

disclosed on a statutory basis are derived from unadjusted components 

of financial statement line items. 

North America 

Gross written premium increased by 4% to $7,555 million, with strong premium rate increases and targeted organic growth partially 

offset by the run-off of non-core lines. Excluding premium rate increases and Crop, premium declined by 12% mainly reflecting 

the run-off of non-core lines. On the same basis and excluding this drag, premium growth was 4%. 

North America reported a combined operating ratio of 103.7%, which compares to 99.5% in the prior year. The ex-cat claims ratio 

improved by 0.2% to 65.7%, or increased by 0.2% when excluding risk adjustment. This reflected inflationary pressures observed 

in Accident & Health, alongside challenges in non-core lines, partially offset by improvement in middle-market and property classes. 

Net catastrophe claims of $234 million or 4.9% of net insurance revenue were mainly driven by convective storm and flood events 

in the first half of 2023, and compared favourably to 5.4% in the prior year. Catastrophe experience was more benign through the 

second half. Adverse prior year central estimate development of $200 million or 4.2% compared with 0.9% in the prior year, and was 

driven predominantly by short-tail lines, including adverse development on winter storm Elliott from late-2022, and $30 million in Crop.

The current accident year Crop combined operating ratio was 96.6%, slightly higher than expectations primarily due to lower 

commodity prices and drought across several States.

MANAGEMENT1

STATUTORY

2023

 7,555 

 4,790 

 73.0 

 21.6 

 9.1 

 103.7 

RESTATED 

2022

 7,280 

 4,641 

 68.9 

 21.4 

 9.2 

 99.5 

2023

 7,555 

 4,432 

 70.3 

 22.6 

 9.8 

 102.7 

RESTATED 

2022

 7,280 

 4,435 

 67.8 

 22.3 

 9.7 

 99.8 

FOR THE YEAR ENDED 31 DECEMBER

Key underwriting metrics

Gross written premium

Net insurance revenue

Net claims ratio

Net commission ratio

Expense ratio

Combined operating ratio

International 

FOR THE YEAR ENDED 31 DECEMBER

Key underwriting metrics

Gross written premium

Net insurance revenue

Net claims ratio

Net commission ratio

Expense ratio

Combined operating ratio

US$M

US$M

%

%

%

%

US$M

US$M

%

%

%

%

Gross written premium increased by 17% in constant currency to $8,802 million, reflecting an acceleration in rate increases for 

property and reinsurance lines, and continued execution against a number of multi-year growth opportunities. Growth was achieved 

across most segments, led by QBE Re and International Markets.

International reported a combined operating ratio of 89.5%, which compares with 94.8% in the prior year. The ex-cat claims ratio 

improved by 3.0% to 54.3%, or 1.6% excluding the risk adjustment. This strong result reflects the benefit from aggregate rate 

increases which continue to track at or above inflation, and benign large claims experience. Adverse prior year central estimate 

development of $57 million or 0.8%, improved from 2.4% in the prior year. Adverse experience in marine and International liability 

was partially offset by releases in QBE Re.

MANAGEMENT1

STATUTORY

2023

 8,802 

 6,921 

 60.0 

 17.9 

 11.6 

 89.5 

RESTATED 

2022

 7,502 

 5,871 

 65.1 

 17.9 

 11.8 

 94.8 

2023

 8,802 

 6,643 

 54.2 

 18.7 

 12.1 

 85.0 

RESTATED 

2022

 7,502 

 5,939 

 63.2 

 17.7 

 11.6 

 92.5 

1  Adjusted for subsequent impacts of in-force reinsurance LPT, underlying PYD adjustments relating to premium and periodic payment order 

(PPO) liabilities and the inclusion of unwind of discount on claims.

Australia Pacific

Continued premium rate increases and targeted growth supported constant currency growth in gross written premium of 8% 
to $5,392 million. Excluding premium rate increases, gross written premium reduced by 1% compared to the prior year. The exit 
of two consumer portfolios, in line with our focus on reducing property catastrophe volatility was largely offset by organic growth 
in Australian commercial lines, CTP and in New Zealand.

Australia Pacific reported a combined operating ratio of 93.6%, which declined slightly from 92.8% in the prior year. The ex-cat 
claims ratio reduced by 1.1% to 58.2%, or 0.4% excluding the risk adjustment. Persistent short-tail claims inflation, particularly 
in personal lines, has been an ongoing challenge; however, the momentum in short-tail premium rate increases which generally built 
through 2023, is expected to support underwriting margins in the year ahead. Net catastrophe claims of $409 million or 8.4% of net 
insurance revenue, increased slightly from 8.1% in the prior year driven by storm and flood events in New Zealand, and Australian 
east coast storms in the final weeks of the year. Favourable prior year central estimate development of $20 million or 0.4% reduced 
from $44 million or 0.9% in the prior year. Favourable experience in LMI and CTP more than offset catastrophe and inflation-related 
strengthening in short-tail classes, and higher wage growth assumptions in liability lines.

FOR THE YEAR ENDED 31 DECEMBER

Key underwriting metrics
Gross written premium
Net insurance revenue
Net claims ratio
Net commission ratio
Expense ratio
Combined operating ratio

MANAGEMENT1

STATUTORY

2023

 5,392 
 4,881 
 64.0 
 15.7 
 13.9 
 93.6 

RESTATED 
2022

 5,219 
 4,585 
 64.2 
 15.5 
 13.1 
 92.8 

2023

 5,392 
 4,901 
 60.2 
 16.8 
 14.0 
 91.0 

RESTATED 
2022

 5,219 
 4,689 
 61.0 
 17.1 
 14.1 
 92.2 

US$M

US$M

%

%

%

%

1  Adjusted for the subsequent impacts of CTP LPT, underlying PYD adjustment related to CTP, Australian pricing promise review (APPR) and 

the inclusion of unwind of discount on claims.

1  Adjusted for subsequent impacts of in-force reinsurance loss portfolio transfer transactions (LPT), underlying prior accident year development 

(PYD) adjustments relating to Crop and the inclusion of unwind of discount on claims.

Investment performance

Total investment income for the year was $1,374 million, equating to a return of 4.7%. The result improved substantially from 
$570 million or 2.0% in the prior year, with higher interest rates supporting fixed income returns, which also included a favourable 
mark to market impact from tighter credit spreads. Risk asset returns were broadly in line with our long-term return expectations, 
a pleasing outcome given valuation pressure in the unlisted property portfolio.

Core fixed income includes cash and cash equivalents, and excludes enhanced fixed income risk assets which comprise emerging 
market debt, high yield debt and private credit. Enhanced fixed income assets are analysed as part of risk assets. The core fixed 
income portfolio delivered a return of 4.8% or $1,247 million, a significant increase on $544 million in the prior year. The result 
included a $116 million benefit from tighter credit spreads, compared to an adverse impact of $128 million in the prior year. 
The running yield on the core fixed income portfolio remained strong through the year, with the 31 December 2023 exit running 
yield of 4.6% around 50 basis points higher than at 31 December 2022.

Risk asset performance improved significantly compared to the prior year. Enhanced fixed income and infrastructure assets 
delivered strong returns, helping to offset weaker performance in the unlisted property portfolio, due to lower property valuations. 
Despite negative unlisted property returns, the risk asset portfolio delivered a return of 5.7% or $190 million compared with 1.2% 
in the prior year.

Funds under management 

Funds under management comprise cash and cash equivalents, investments and investment properties. Funds under management 
of $30,064 million increased by 7% compared to $28,167 million at 31 December 2022, or 5% on a constant currency basis. 
Strong investment returns and continued premium growth were offset by the material reduction in investment assets associated 
with the $1.9 billion reserve transaction, which was announced in February 2023.

Portfolio mix continued to trend toward our target strategic asset allocation in 2023. The allocation to risk assets increased to 12% 
(and 14% on a committed basis) from 11% at 31 December 2022. The core fixed income portfolio now represents 88% of total 
investments, and QBE continues to target a strategic asset allocation of ~85% core fixed income and ~15% risk assets.

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12

Tax

QBE’s effective statutory tax rate was 25.7% compared with 12.0% in the prior year. The effective tax rate reflects the mix of corporate 
tax rates across QBE’s key regions. The 2022 effective tax rate was impacted by the recognition of previously unrecognised tax losses 
in the North American tax group.

During the year, QBE paid $138 million in corporate income tax globally. No tax payments were made by the Australian tax group for 
the year due to the utilisation of tax losses, which are now fully utilised. The Australian tax group is expected to pay taxes from 2024. 
The balance of the franking account stood at A$46 million as at 31 December 2023. Having regard to QBE’s franked AT1 distribution 
commitments and carry over tax losses, the dividend franking percentage is expected to remain around 10%.

Balance sheet and capital management

Balance sheet and share information 

AS AT

Net assets
Less: intangible assets
Net tangible assets 
Number of shares on issue
Net tangible assets per share

Net outstanding claims

STATUTORY

31 DECEMBER 2023

RESTATED 
31 DECEMBER 2022

US$M

US$M

US$M

millions

US$

 9,953 
 2,112 
 7,841 
 1,494 
 5.25 

 8,857 
 2,018 
 6,839 
 1,485 
 4.61   

Net outstanding claims comprise claims reserves within the net liability for incurred claims including recoveries on reinsurance 
loss portfolio transfers. At 31 December 2023, the net discounted central estimate was $17,198 million, which increased from 
$16,101 million at 31 December 2022 due to organic growth and reserve strengthening, partially offset by the impact of the $1.9 billion 
reserve transaction and higher discount rates. 

Excluding foreign exchange and the reserve transaction, the net discounted central estimate increased by $2,485 million. 
This underlying growth primarily reflected new business growth, inflation and reserve strengthening in the period. 

At 31 December 2023, the risk adjustment was $1,379 million or 8.0% of the net discounted central estimate, consistent with 
31 December 2022, and at the top end of our 6–8% target range.

Borrowings

At 31 December 2023, total borrowings were $2,798 million, an increase of $54 million from $2,744 million at 31 December 2022. 
The broadly stable outcome reflects Tier 2 funding activity in the period, including the issuance of A$300 million and A$330 million 
in June 2023 and October 2023 respectively, largely offsetting a $400 million redemption in November 2023. 

Debt to total capital reduced to 21.9% at 31 December 2023, from 23.7% at 31 December 2022, reflecting continued growth across 
the business along with improved investment performance. At 31 December 2023, all the Group’s borrowings count towards 
regulatory capital. Gross interest expense on borrowings for the year was $169 million, an increase from $166 million in the prior year, 
reflecting the sequencing of funding activity in the year. The average annualised cash cost of borrowings at 31 December 2023 was 
5.9%, consistent with the prior year.

Capital

QBE’s indicative PCA multiple improved to 1.82x at 31 December 2023 from 1.79x at 31 December 2022. Allowing for the payment of 
the 2023 final dividend of 48 Australian cents, the pro-forma PCA multiple would decline to 1.74x. Capital generation over the period 
was supported by strong profitability, alongside a 6 point benefit associated with the $1.9 billion reserve transaction. This more than 
offset capital consumed through ongoing premium growth and the payment of dividends during the year. 

12

Tax

Cash profit and dividends 

QBE’s effective statutory tax rate was 25.7% compared with 12.0% in the prior year. The effective tax rate reflects the mix of corporate 

tax rates across QBE’s key regions. The 2022 effective tax rate was impacted by the recognition of previously unrecognised tax losses 

Reconciliation of cash profit 

FOR THE YEAR ENDED 31 DECEMBER

Net profit after income tax
Amortisation and impairment of intangibles after tax1
Write-off deferred tax assets
Write-off capitalised tax assets
Net cash profit after income tax
Restructuring and related expenses
Net gain on disposals after tax
Additional Tier 1 capital coupon
Adjusted net cash profit after income tax

Basic earnings per share – statutory (US cents)
Diluted earnings per share – statutory (US cents)
Basic earnings per share – adjusted cash basis (US cents)
Diluted earnings per share – adjusted cash basis (US cents)

Return on average shareholders’ equity – adjusted cash basis (%)
Dividend payout ratio (percentage of adjusted cash profit) 2

2023
US$M

 1,355 
 59 
 – 
 – 
 1,414 
 – 
(2)
(50)
 1,362 

 87.6 
 87.0 
 91.4 
 90.8 

 16.0 
 45 

RESTATED 
2022
US$M

 587 
 71 
 – 
 – 
 658 
 94 
(38)
(50)
 664 

 36.2 
 36.0 
 44.8 
 44.5 

 8.3 
 60 

13

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1  $65 million of pre-tax amortisation expense is included in expenses and other income (2022 $63 million).
2  Dividend payout ratio is calculated as the total A$ dividend divided by adjusted cash profit converted to A$ at the period average rate 

of exchange.

Dividends

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The Board declared a final dividend for 2023 of 48 Australian cents per share, which results in a full year dividend of 62 Australian 
cents per share, an increase from the 2022 full year dividend of 39 Australian cents per share. This represents a full year dividend 
payout ratio of 45% of adjusted cash profit. QBE’s dividend policy is calibrated to a 40–60% payout of annual adjusted cash profit, 
which has been set at a level which can support the Group’s growth ambitions and provide flexibility to manage the dynamics 
associated with the global insurance cycle. The payout for the current period reflects the Board’s confidence in the strength of the 
balance sheet and favourable outlook for returns, while retaining flexibility given the positive outlook for premium growth. The full 
year dividend payout of A$926 million compares with A$580 million in 2022. The final dividend will be 10% franked and is payable 
on 12 April 2024. The Dividend Reinvestment Plan and Bonus Share Plan will be satisfied by the issue of shares at a nil discount.

Outlook

We exit 2023 having executed multiple initiatives to reduce potential reserve volatility and build a more resilient property 
portfolio. Our portfolio optimisation focus will continue to centre around reducing volatility, with meaningful scope for 
further improvement. Elevated investment will continue in 2024 as we progress our modernisation agenda. This will 
ultimately position QBE to grow our core franchises and become a more accessible and efficient partner.

The outlook for premium rate increases remains favourable. While we expect some moderation from 2023 levels, the 
degree of uncertainty surrounding the path of inflation, geopolitical tensions and elevated catastrophe activity should 
serve to maintain market discipline. We enter the year with a broad growth agenda and see good opportunity for further 
ex-rate growth. This will be tempered by the ongoing run-off of exited property portfolios in North America and Australia, 
which are collectively expected to represent a ~$300 million gross written premium headwind in 2024. Executing on our 
strategy in North America remains a primary focus. The underwriting loss associated with non-core lines should reduce 
meaningfully into 2024, and then reduce further and broadly conclude in 2025.

Inflation challenges are expected to remain a feature for the foreseeable future. While we expect aggregate claims inflation 
to normalise slightly into 2024, recent experience highlights this is unlikely to occur uniformly across all regions and 
classes, and the operating backdrop remains dynamic.

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in the North American tax group.

During the year, QBE paid $138 million in corporate income tax globally. No tax payments were made by the Australian tax group for 

the year due to the utilisation of tax losses, which are now fully utilised. The Australian tax group is expected to pay taxes from 2024. 

The balance of the franking account stood at A$46 million as at 31 December 2023. Having regard to QBE’s franked AT1 distribution 

commitments and carry over tax losses, the dividend franking percentage is expected to remain around 10%.

Balance sheet and capital management

Balance sheet and share information 

AS AT

Net assets

Less: intangible assets

Net tangible assets 

Number of shares on issue

Net tangible assets per share

Net outstanding claims

STATUTORY

31 DECEMBER 2023

31 DECEMBER 2022

RESTATED 

US$M

US$M

US$M

millions

US$

 9,953 

 2,112 

 7,841 

 1,494 

 5.25 

 8,857 

 2,018 

 6,839 

 1,485 

 4.61   

Net outstanding claims comprise claims reserves within the net liability for incurred claims including recoveries on reinsurance 

loss portfolio transfers. At 31 December 2023, the net discounted central estimate was $17,198 million, which increased from 

$16,101 million at 31 December 2022 due to organic growth and reserve strengthening, partially offset by the impact of the $1.9 billion 

reserve transaction and higher discount rates. 

Excluding foreign exchange and the reserve transaction, the net discounted central estimate increased by $2,485 million. 

This underlying growth primarily reflected new business growth, inflation and reserve strengthening in the period. 

At 31 December 2023, the risk adjustment was $1,379 million or 8.0% of the net discounted central estimate, consistent with 

31 December 2022, and at the top end of our 6–8% target range.

Borrowings

At 31 December 2023, total borrowings were $2,798 million, an increase of $54 million from $2,744 million at 31 December 2022. 

The broadly stable outcome reflects Tier 2 funding activity in the period, including the issuance of A$300 million and A$330 million 

in June 2023 and October 2023 respectively, largely offsetting a $400 million redemption in November 2023. 

Debt to total capital reduced to 21.9% at 31 December 2023, from 23.7% at 31 December 2022, reflecting continued growth across 

the business along with improved investment performance. At 31 December 2023, all the Group’s borrowings count towards 

regulatory capital. Gross interest expense on borrowings for the year was $169 million, an increase from $166 million in the prior year, 

reflecting the sequencing of funding activity in the year. The average annualised cash cost of borrowings at 31 December 2023 was 

5.9%, consistent with the prior year.

Capital

QBE’s indicative PCA multiple improved to 1.82x at 31 December 2023 from 1.79x at 31 December 2022. Allowing for the payment of 

the 2023 final dividend of 48 Australian cents, the pro-forma PCA multiple would decline to 1.74x. Capital generation over the period 

was supported by strong profitability, alongside a 6 point benefit associated with the $1.9 billion reserve transaction. This more than 

offset capital consumed through ongoing premium growth and the payment of dividends during the year. 

 
 
 
 
 
 
 
 
 
 
 
 
 
14

Statutory to management result reconciliation

STATUTORY

ADJUSTMENTS

MANAGEMENT

FOR THE YEAR ENDED 31 DECEMBER 2023

US$M

US$M

US$M

DISCOUNT 
UNWIND

UNDERLYING  
PYD

Insurance revenue
Insurance service expenses1
Reinsurance expenses
Reinsurance income1
Insurance service result
Other expenses1
Other income1
Insurance operating result
Net insurance finance (expense) income
Fixed income losses from changes in 
risk-free rates 
Net investment income on policyholders’ 
funds
Insurance profit
Net investment income on shareholders’ 
funds
Financing and other costs
Gain on sale of entities and businesses
Share of net loss of associates
Impairment of owner occupied property
Amortisation of intangibles

Profit before income tax
Income tax expense
Profit after income tax
Non-controlling interests
Net profit after income tax

 20,826 
(18,421)
(4,848)
 3,946 
 1,503 
(250)
 62 
 1,315 
(579)

 – 

 883 
 1,619 

 486 
(232)
 2 
(2)
(25)
(11)

 1,837 
(473)
 1,364 
(9)
 1,355 

 – 
(942)
 – 
 423 
(519)
 – 
 – 
(519)
 519 

 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 

 – 

(1)
 1 
(1)
 1 
 – 
 – 
 – 
 – 
 – 

 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 

 – 

LPT

US$M

 – 
 – 
 623 
(623)
 – 
 – 
 – 
 – 
 – 

 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 

 – 

INVESTMENT  
RFR

US$M

US$M

 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 

(5)

 3 
(2)

 2 
 – 
 – 
 – 
 – 
 – 

 – 

 20,825 
(19,362)
(4,226)
 3,747 
 984 
(250)
 62 
 796 
(60)

(5)

 886 
 1,617 

 488 
(232)
 2 
(2)
(25)
(11)

 1,837 
(473)
 1,364 
(9)
 1,355 

STATUTORY

ADJUSTMENTS

MANAGEMENT

FOR THE YEAR ENDED 31 DECEMBER 2022 2

US$M

US$M

US$M

DISCOUNT 
UNWIND

UNDERLYING  
PYD

LPT

US$M

INVESTMENT  
RFR

US$M

APPR

US$M

Insurance revenue
Insurance service expenses1
Reinsurance expenses
Reinsurance income1
Insurance service result
Other expenses1
Other income1
Insurance operating result
Net insurance finance income
Fixed income losses from changes in 
risk-free rates 
Net investment (loss) income 
on policyholders’ funds
Insurance profit 
Net investment (loss) income 
on shareholders’ funds
Financing and other costs
Gain on sale of entities and businesses
Share of net loss of associates
Remediation
Restructuring and related expenses
Amortisation and impairment 
of intangibles
Profit before income tax
Income tax expense
Profit after income tax
Non-controlling interests
Net profit after income tax

 18,904 
(17,579)
(3,850)
 3,496 
 971 
(286)
 74 
 759 
 1,037 

 – 

(501)
 1,295 

(272)
(245)
 38 
(7)
 – 
(106)

(27)
 676 
(81)
 595 
(8)
 587 

 – 
(608)
 – 
 403 
(205)
 – 
 – 
(205)
 205 

 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 

 – 
 – 

(70)
 53 
 17 
 – 
 – 
 – 
 – 
 – 
 – 

 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 

 – 
 – 

 – 
 – 
 87 
(87)
 – 
 – 
 – 
 – 
 – 

 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 

(1,343)

 891 
(452)

 452 
 – 
 – 
 – 
 – 
 – 

 – 
 – 

 – 
 – 
 – 
 – 
 – 
 60 
 – 
 60 
 – 

 – 

 – 
 60 

 – 
 15 
 – 
 – 
(75)
 – 

 – 
 – 

US$M

 18,834 
(18,134)
(3,746)
 3,812 
 766 
(226)
 74 
 614 
 1,242 

(1,343)

 390 
 903 

 180 
(230)
 38 
(7)
(75)
(106)

(27)
 676 
(81)
 595 
(8)
 587 

1  Further analysed as net claims expense, net commission and expenses and other income in the management discussion as shown in the 

table on the next page.

2  2022 has been restated to reflect the application of AASB 17 Insurance Contracts.

14

15

STATUTORY

ADJUSTMENTS

MANAGEMENT

Analysis of the insurance operating result

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The insurance operating result is further analysed as net insurance revenue, net claims, net commission and expenses and other 
income for the purposes of explaining the key drivers of the Group’s operating result and calculating key metrics. Analysis of the 
nature of income and expenses within the insurance operating result provides useful additional information about underlying trends 
in relation to the different components of underwriting profitability. 

NET INSURANCE  
REVENUE

NET CLAIMS 
EXPENSE

NET  
COMMISSION

EXPENSES AND  
OTHER INCOME

TOTAL

FOR THE YEAR ENDED 31 DECEMBER

2023
US$M

RESTATED 
2022
US$M

2023
US$M

RESTATED 
2022
US$M

2023
US$M

RESTATED 
2022
US$M

2023
US$M

RESTATED 
2022
US$M

2023
US$M

RESTATED 
2022
US$M

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Statutory 
Insurance revenue
Insurance service expenses
Reinsurance expenses
Reinsurance income
Insurance service result
Other expenses
Other income
Insurance operating result
Adjustments
Discount unwind
Underlying PYD
LPT
Other
Management

Adjustments

 20,826 
 – 
(4,848)
 – 
 15,978 
 – 
 – 
 15,978 

 18,904 
 – 
(3,850)
 – 
 15,054 
 – 
 – 
 15,054 

 – 

 – 
(13,740) (13,367)
 – 
 3,724 
(9,643)
 – 
 – 
(9,643)

 – 
 4,122 
(9,618)
 – 
 – 
(9,618)

 – 
(2)
 623 
 – 
 16,599 

 – 
(53)
 87 
 – 
 15,088 

(519)
 20 
(688)
 – 
(10,805)

(205)
 75 
(191)
 – 
(9,964)

 – 
(2,916)
 – 
(176)
(3,092)
 – 
 – 
(3,092)

 – 
(17)
 65 
 – 
(3,044)

 – 
(2,595)
 – 
(228)
(2,823)
 – 
 – 
(2,823)

 – 
(22)
 104 
 – 
(2,741)

 – 
(1,765)
 – 
 – 
(1,765)
(250)
 62 
(1,953)

 – 
(1)
 – 
 – 
(1,954)

 – 
(1,617)
 – 
 – 
(1,617)
(286)
 74 
(1,829)

 – 
 – 
 – 
 60 
(1,769)

 20,826 
(18,421)
(4,848)
 3,946 
 1,503 
(250)
 62 
 1,315 

 18,904 
(17,579)
(3,850)
 3,496 
 971 
(286)
 74 
 759 

(519)
 – 
 – 
 – 
 796 

(205)
 – 
 – 
 60 
 614 

The statutory result has been adjusted for the following items when discussing the result to provide greater transparency over 
the underlying drivers of performance.

Discount unwind 

The subsequent unwind of claims discount within net insurance finance income is analysed as part of the net claims expense component 
of the insurance operating result as these are associated with claims and directly relate to the impact of initial discounting of claims 
reported within insurance service expenses.

Underlying prior year development (PYD)

Underlying prior accident year claims development within net claims expense amounting to $20 million (2022 $75 million) has been 
reclassified to net insurance revenue and net commission. In the current year, this principally related to Crop (North America) for 
additional premium cessions to the US government on prior year claims under the MPCI scheme and CTP (Australia Pacific) for profit 
commission income arising from favourable development under the 2021 reinsurance loss portfolio transfer. Underlying PYD also 
includes an adjustment for periodic payment order (PPO) liabilities within International to reflect their annuity characteristics.
Reinsurance loss portfolio transfer transactions (LPT) 

The subsequent impacts of in-force reinsurance loss portfolio transfer contracts within reinsurance expenses and reinsurance 
income are analysed on a net basis within net claims expense to provide a view of the underlying development on these contracts 
against the corresponding development of the subject gross reserves, consistent with the focus on net underwriting performance. 
Adjustments relate to the current year reserve transaction to reinsure claims liabilities in North America and International, and other 
reinsurance loss portfolio transfer contracts entered into in prior years. 

Australian pricing promise review (APPR) 

In 2022, the Group recognised a $75 million net cost (before tax) following a review of pricing promises across a range of retail 
products which identified instances where the policy pricing promise was not fully delivered. The net cost comprised amounts for 
customer remediation, interest payable and other costs associated with administering the program. There has been no material 
change to the costs recognised in profit or loss since the prior year.

Investment risk‑free rate (RFR) impacts

Net investment income (loss) is analysed separately between risk-free rate movement impacts on fixed income assets, and remaining 
income (loss). This enables analysis of these risk-free rate movement impacts alongside the corresponding offsetting impacts on net 
insurance liabilities within insurance finance income.

2

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Statutory to management result reconciliation

FOR THE YEAR ENDED 31 DECEMBER 2023

US$M

US$M

DISCOUNT 

UNWIND

UNDERLYING  

INVESTMENT  

PYD

US$M

LPT

US$M

RFR

US$M

Insurance revenue

Insurance service expenses1

Reinsurance expenses

Reinsurance income1

Insurance service result

Other expenses1

Other income1

Insurance operating result

Net insurance finance (expense) income

Fixed income losses from changes in 

risk-free rates 

Net investment income on policyholders’ 

Insurance profit

Net investment income on shareholders’ 

funds

funds

Financing and other costs

Gain on sale of entities and businesses

Share of net loss of associates

Impairment of owner occupied property

Amortisation of intangibles

Profit before income tax

Income tax expense

Profit after income tax

Non-controlling interests

Net profit after income tax

FOR THE YEAR ENDED 31 DECEMBER 2022 2

Insurance revenue

Insurance service expenses1

Reinsurance expenses

Reinsurance income1

Insurance service result

Other expenses1

Other income1

Insurance operating result

Net insurance finance income

Fixed income losses from changes in 

risk-free rates 

Net investment (loss) income 

on policyholders’ funds

Insurance profit 

Net investment (loss) income 

on shareholders’ funds

Financing and other costs

Gain on sale of entities and businesses

Share of net loss of associates

Remediation

Restructuring and related expenses

Amortisation and impairment 

of intangibles

Profit before income tax

Income tax expense

Profit after income tax

Non-controlling interests

Net profit after income tax

 20,826 

(18,421)

(4,848)

 3,946 

 1,503 

(250)

 62 

 1,315 

(579)

 – 

 883 

 1,619 

 486 

(232)

 2 

(2)

(25)

(11)

 1,837 

(473)

 1,364 

(9)

 1,355 

US$M

 18,904 

(17,579)

(3,850)

 3,496 

 971 

(286)

 74 

 759 

 1,037 

 – 

(501)

 1,295 

(272)

(245)

 38 

(7)

 – 

(106)

(27)

 676 

(81)

 595 

(8)

 587 

(942)

 – 

 – 

 423 

(519)

 – 

 – 

(519)

 519 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

US$M

(608)

 – 

 – 

 403 

(205)

 – 

 – 

(205)

 205 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

(1)

 1 

(1)

 1 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 623 

(623)

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

PYD

US$M

(70)

 53 

 17 

LPT

US$M

 – 

 – 

 87 

(87)

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

(1,343)

 891 

(452)

 452 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

(5)

 3 

(2)

 2 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 60 

 – 

 60 

 – 

 – 

 – 

 60 

 – 

 15 

 – 

 – 

(75)

 – 

 – 

 – 

US$M

 20,825 

(19,362)

(4,226)

 3,747 

 984 

(250)

 62 

 796 

(60)

(5)

 886 

 1,617 

 488 

(232)

 2 

(2)

(25)

(11)

 1,837 

(473)

 1,364 

(9)

 1,355 

US$M

 18,834 

(18,134)

(3,746)

 3,812 

 766 

(226)

 74 

 614 

 1,242 

(1,343)

 390 

 903 

 180 

(230)

 38 

(7)

(75)

(106)

(27)

 676 

(81)

 595 

(8)

 587 

STATUTORY

ADJUSTMENTS

MANAGEMENT

DISCOUNT 

UNDERLYING  

INVESTMENT  

UNWIND

RFR

US$M

APPR

US$M

1  Further analysed as net claims expense, net commission and expenses and other income in the management discussion as shown in the 

table on the next page.

2  2022 has been restated to reflect the application of AASB 17 Insurance Contracts.

 
 
 
 
 
 
 
 
 
 
 
 
 
16

Risk management

QBE’s Risk Management Strategy (RMS) outlines our approach to managing 
risk by articulating the fundamental principles which apply to all levels 
of the organisation. The RMS is reviewed annually to assess compliance 
and effectiveness. QBE’s approach to managing risk effectively is supported 
by our Enterprise Risk Management Framework.

QBE’s risk management processes and standards are 
underpinned by our internal governance, risk and compliance 
system Insight which captures data relating to our risks, 
obligations, controls, incidents and issues. We regularly make 
improvements to Insight to build this data analysis capability, 
with report and dashboard functionalities supporting oversight 
and monitoring activity.

Risk governance

Risk management is governed primarily by the Board Risk 
& Capital Committee, and by the Executive Risk Committee 
at a management level. 

QBE manages risk through the three lines model which outlines 
where accountabilities for risk management activities sit across 
the business. Primary responsibility for risk management lies 
with the business (first line). The Risk and Compliance team 
provides review and challenge, oversight, monitoring and 
reporting on QBE's material risks (second line). Internal Audit 
provides independent assurance on the compliance with, and 
effectiveness of, QBE's risk management framework (third line). 

Risk culture 

QBE recognises the importance of a sound risk culture, 
and that risk culture is strongly intertwined with our QBE DNA. 
Our Board, assisted by the Board Risk & Capital Committee, 
is responsible for overseeing our risk culture, including forming 
a view on whether it supports QBE to operate consistently within 
its risk appetite. 

QBE regularly monitors and measures the maturity of our risk 
culture against Board‑approved Target Statements, applying 
a range of tools and indicators. Important components which 
facilitate our risk culture include developing a strong risk 
mindset and risk skills in our business, a commitment to safety 
in speaking up, and recognising risk performance through 
balanced rewards and incentives.

Strategic planning, risk appetite and 
capital management

QBE embeds risk management in the strategic and business 
planning process to allow risks to be managed in an integrated 
manner and to support QBE’s overall strategic objectives. 
Material risks are identified and assessed as part of this 
and stress testing is performed to enable QBE to design 
actions to help achieve our business plan objectives while 
staying within risk appetite.

Risk Appetite Statements (RAS) define thresholds for our 
risk appetite with associated actions for clear reporting 
to management and the Board. Key risk indicators and other 
financial and non‑financial metrics are continually being 
developed to support our RAS and quantify our risk tolerance, 
informing timely and appropriate responses. 

To maintain balance between our risk appetite and strategic 
planning, our Internal Capital Adequacy Assessment Process 
enables us to allocate resources for sustainable growth 
and optimise risk and return. There has been significant 
effort in aligning the capital management approach 
across all divisions and uplifting use of capital models 
in decision making.

Risk processes and standards

QBE’s Group Risk and Control Self‑Assessment (RCSA) 
Standard sets out minimum requirements for how we identify 
and assess risks and controls in a way that embeds risk 
management across the business. The standard enables 
improvement of risk and control effectiveness, where strong 
embedment of RCSAs has increased the understanding 
and capability of first line and led to strong ownership of risks, 
controls and responsibilities. 

QBE’s Incident and Issue Management Standard sets out 
minimum requirements for managing incidents and issues 
which allows us to understand our risk exposure and identify 
root causes to improve the overall control environment. 
The standard outlines the identification, escalation, 
resolution and reporting process for incidents and issues. 

The Risk Maturity Self‑Assessment (RMSA) is used to annually 
assess risk maturity across the Group, understand how well 
risk is being managed and benchmark against our target 
maturity levels. QBE is on an ongoing journey to uplift risk 
maturity, and identifying areas for continual improvement of risk 
management through RMSA enables us to achieve our strategic 
goals and business objectives. 

16

Risk management

QBE’s Risk Management Strategy (RMS) outlines our approach to managing 

risk by articulating the fundamental principles which apply to all levels 

of the organisation. The RMS is reviewed annually to assess compliance 

and effectiveness. QBE’s approach to managing risk effectively is supported 

by our Enterprise Risk Management Framework.

QBE’s risk management processes and standards are 

underpinned by our internal governance, risk and compliance 

system Insight which captures data relating to our risks, 

obligations, controls, incidents and issues. We regularly make 

improvements to Insight to build this data analysis capability, 

with report and dashboard functionalities supporting oversight 

and monitoring activity.

Risk governance

Risk management is governed primarily by the Board Risk 

& Capital Committee, and by the Executive Risk Committee 

at a management level. 

QBE manages risk through the three lines model which outlines 

where accountabilities for risk management activities sit across 

the business. Primary responsibility for risk management lies 

with the business (first line). The Risk and Compliance team 

provides review and challenge, oversight, monitoring and 

reporting on QBE's material risks (second line). Internal Audit 

provides independent assurance on the compliance with, and 

effectiveness of, QBE's risk management framework (third line). 

Risk culture 

QBE recognises the importance of a sound risk culture, 

and that risk culture is strongly intertwined with our QBE DNA. 

Our Board, assisted by the Board Risk & Capital Committee, 

is responsible for overseeing our risk culture, including forming 

a view on whether it supports QBE to operate consistently within 

its risk appetite. 

QBE regularly monitors and measures the maturity of our risk 

culture against Board‑approved Target Statements, applying 

a range of tools and indicators. Important components which 

facilitate our risk culture include developing a strong risk 

mindset and risk skills in our business, a commitment to safety 

in speaking up, and recognising risk performance through 

balanced rewards and incentives.

Strategic planning, risk appetite and 

capital management

QBE embeds risk management in the strategic and business 

planning process to allow risks to be managed in an integrated 

manner and to support QBE’s overall strategic objectives. 

Material risks are identified and assessed as part of this 

and stress testing is performed to enable QBE to design 

actions to help achieve our business plan objectives while 

staying within risk appetite.

Risk Appetite Statements (RAS) define thresholds for our 

risk appetite with associated actions for clear reporting 

to management and the Board. Key risk indicators and other 

financial and non‑financial metrics are continually being 

developed to support our RAS and quantify our risk tolerance, 

informing timely and appropriate responses. 

To maintain balance between our risk appetite and strategic 

planning, our Internal Capital Adequacy Assessment Process 

enables us to allocate resources for sustainable growth 

and optimise risk and return. There has been significant 

effort in aligning the capital management approach 

across all divisions and uplifting use of capital models 

in decision making.

Risk processes and standards

QBE’s Group Risk and Control Self‑Assessment (RCSA) 

Standard sets out minimum requirements for how we identify 

and assess risks and controls in a way that embeds risk 

management across the business. The standard enables 

improvement of risk and control effectiveness, where strong 

embedment of RCSAs has increased the understanding 

and capability of first line and led to strong ownership of risks, 

controls and responsibilities. 

QBE’s Incident and Issue Management Standard sets out 

minimum requirements for managing incidents and issues 

which allows us to understand our risk exposure and identify 

root causes to improve the overall control environment. 

The standard outlines the identification, escalation, 

resolution and reporting process for incidents and issues. 

The Risk Maturity Self‑Assessment (RMSA) is used to annually 

assess risk maturity across the Group, understand how well 

risk is being managed and benchmark against our target 

maturity levels. QBE is on an ongoing journey to uplift risk 

maturity, and identifying areas for continual improvement of risk 

management through RMSA enables us to achieve our strategic 

goals and business objectives. 

Our top risks

QBE continues to navigate the uncertain geopolitical and economic environment 
including unrest from the recent Israel‑Palestine conflict, the ongoing Russia‑Ukraine 
conflict and the growing tensions surrounding Taiwan. 

Rising inflation and interest rates have dampened economic activity and heightened the risk of recession. Natural catastrophe activity 
continues globally with multiple storm, flood and wildfire events. QBE is focused on analysing and managing the potential impacts 
from these external factors. Each year, the top risks inform planning of activities such as stress and scenario analysis, realistic 
disaster scenarios and Internal Capital Adequacy Assessment Process scenarios. Our analysis of top risks includes impact to QBE, 
management actions and the risk trend. The management actions taken to address the top risks are closely linked with the work 
we are doing as part of our strategic priority areas.

Top risks

Management actions

Geopolitical: Potential consequences associated with political 
shifts, international conflicts, trade disruptions, and regulatory 
changes, which can influence the insurance landscape. 
Increased levels of sanctions, including increased differences 
across major trading economies (US, UK, EU and Australia), 
pose a risk of operational complexity and an uncompetitive 
position in international markets.

Our proactive approach to geopolitical risk management 
involves monitoring rapid changes in the international 
sanctions’ environment, undertaking of appropriate 
screening and due diligence and continuously 
assessing the geopolitical environment when making 
risk selection decisions. 

Economic uncertainty: This year we have seen persistent 
high levels of inflation across the global economy following 
Russia’s invasion of Ukraine, worsening supply chain issues 
which emerged from COVID‑19 and restricting the supply 
of oil and gas. In response to inflation, central banks from 
major economies have regularly increased interest rates. 
A heightened risk of recession arose from weaker growth 
in nominal economic activity and associated cost of living.

We continue to monitor these economic variables by 
engaging in comprehensive analysis to understand the 
potential impact on our business. The risk of inflation and 
recession have been key considerations for underwriting 
in 2023. Scenario testing was performed in 2023 to consider 
the potential impact of a deep recession on gross written 
premium, reserves and investment income and how it would 
affect the business plan.

Cyber: The proliferation of technology has brought about 
unprecedented opportunities and convenience, but it has also 
exposed businesses to a new realm of threats. Cyberattack, 
data breaches and privacy violations can disrupt business 
operations and erode customer trust.

QBE continues to monitor the cyber threat landscape. 
A program of work to deliver our cyber strategy is in 
place. Scenario‑based risk assessments are ongoing 
and being utilised to support the determination of the 
residual ransomware risk and any impacts on our risk 
appetite position.

Insurance accumulation: This risk arises from the potential 
concentration of policies or exposure within our portfolio, 
particularly in regions susceptible to common perils like 
natural disasters.

Our risk modelling tools and diversification efforts 
enable us to mitigate the adverse effects of accumulation 
risk thereby ensuring the continued protection 
of our policyholders. 

Reserves: Inflation continues to drive uncertainty around the 
adequacy of QBE’s current reserves to meet future claims with 
the risk of adverse prior year claims development. Both price 
and social inflation contribute to the rising claims costs and 
must be considered in reserving assumptions. 

Technology: This is the risk of material unplanned, negative 
business outcome involving the failure, misuse or end of life 
of IT systems. For instance, obsolescence of IT assets 
may increase the likelihood of system down time leading 
to process inefficiencies.

We undertake planning and reviews of risk appetite, 
pricing, risk selection, reserve risk, and our reinsurance 
strategy (both prospective and retrospective) to effectively 
manage this risk.

We are progressively transitioning applications to the 
cloud, with interim steps being taken to address end‑of‑life 
systems. A pilot to assess the benefits of more frequent 
control testing took place throughout 2023 with the aim 
to provide a regular view of the control environment 
thereby allowing a more accurate assessment of the 
residual risk positions. 

17

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18

Top risks

Management actions

Data risk: The risk that business strategic objectives 
are impeded by a lack of complete, accurate, timely and 
meaningful data. Data issues may result in poor employee 
experience, errors in reports to external stakeholders or lead 
to suboptimal business decisions.

Our Data Governance Framework supports the 
implementation of our Data Strategy and Roadmap. 
We also continue to monitor manual processing and data 
quality largely making sure controls are fully understood, 
assessed, and recorded. 

Attracting and retaining talent: The risk that inadequate 
management of talent pipeline and focused succession 
planning results in gaps in skills and capabilities and 
heightened key person dependencies.

Growth in regulatory obligations and intervention: 
The risk that regulators increase their supervision and tighten 
regulatory obligations, including imposing divergent obligations 
between the different regulators. A compliance breach 
would require reporting to regulator and result in regulatory 
enforcement action.

Operational disruption from transformation agenda: 
The delivery risks present in QBE’s transformation 
portfolio can impact cost, regulatory compliance and 
benefits realisation.

We are proactively building career development 
opportunities and deeper succession pools. Our Retention 
Toolkit helps managers understand retention and identify 
potential issues early. We conduct regular reviews of exit 
interview data to spot trends and deep dive into known 
attrition hotspots. Our bi‑annual wellbeing dashboard 
includes key metrics to inform benefit and wellbeing 
strategic direction.

We conduct proactive and open engagement with 
regulators in relation to business and regulatory changes. 
We continuously monitor regulatory changes. We have 
developed an obligation register for all key compliance 
obligations with review and oversight applied via RCSAs. 

We continue to focus on underwriting and program 
operations simplification efforts. This is accompanied 
by regular reviews and monitoring on the effectiveness 
of project delivery and its alignment to, and impact on, 
our strategic pillars. 

Failure to meet expectations on ESG: The potential failure 
to meet evolving government, market, investor, and conduct 
expectations on sustainability, ESG and climate change 
(physical and transition). 

We aim to understand and manage our exposure to 
ESG‑related risks through a variety of activities, including 
risk assessments and scenario analysis which considers 
the potential impact of changes in variables and risks. 

Reinsurance risk: The risk that QBE is unable to obtain 
insurance from a reinsurer at the right time and at an 
appropriate cost. The inability may emanate from a variety 
of reasons such as unfavourable market conditions.

Artificial intelligence: The insurance industry is increasingly 
adopting AI technologies to streamline operations, 
improve underwriting processes, and enhance customer 
experiences. However, there are several risks associated 
with the use of generative AI in the insurance industry.

By integrating risk management into business planning, 
QBE aims to monitor and respond to macro changes 
in the competitive environment. We conduct quarterly 
governance oversight of performance, quarterly 
rate and income monitoring, and monthly price 
adequacy monitoring.

As a new top risk for QBE, we are exploring pathways 
to manage AI related risks via a multi‑faceted approach, 
including robust data governance, rigorous testing and 
validation of AI models, ongoing monitoring for biases 
and fairness, transparency in algorithmic decision‑making, 
and adherence to legal and ethical standards.

18

19

Top risks

Management actions

Data risk: The risk that business strategic objectives 

are impeded by a lack of complete, accurate, timely and 

Our Data Governance Framework supports the 

implementation of our Data Strategy and Roadmap. 

meaningful data. Data issues may result in poor employee 

We also continue to monitor manual processing and data 

experience, errors in reports to external stakeholders or lead 

quality largely making sure controls are fully understood, 

to suboptimal business decisions.

assessed, and recorded. 

Attracting and retaining talent: The risk that inadequate 

management of talent pipeline and focused succession 

planning results in gaps in skills and capabilities and 

heightened key person dependencies.

We are proactively building career development 

opportunities and deeper succession pools. Our Retention 

Toolkit helps managers understand retention and identify 

potential issues early. We conduct regular reviews of exit 

interview data to spot trends and deep dive into known 

attrition hotspots. Our bi‑annual wellbeing dashboard 

includes key metrics to inform benefit and wellbeing 

strategic direction.

Growth in regulatory obligations and intervention: 

We conduct proactive and open engagement with 

The risk that regulators increase their supervision and tighten 

regulators in relation to business and regulatory changes. 

regulatory obligations, including imposing divergent obligations 

We continuously monitor regulatory changes. We have 

between the different regulators. A compliance breach 

developed an obligation register for all key compliance 

would require reporting to regulator and result in regulatory 

obligations with review and oversight applied via RCSAs. 

enforcement action.

Operational disruption from transformation agenda: 

We continue to focus on underwriting and program 

The delivery risks present in QBE’s transformation 

portfolio can impact cost, regulatory compliance and 

benefits realisation.

operations simplification efforts. This is accompanied 

by regular reviews and monitoring on the effectiveness 

of project delivery and its alignment to, and impact on, 

our strategic pillars. 

Failure to meet expectations on ESG: The potential failure 

We aim to understand and manage our exposure to 

to meet evolving government, market, investor, and conduct 

ESG‑related risks through a variety of activities, including 

expectations on sustainability, ESG and climate change 

risk assessments and scenario analysis which considers 

(physical and transition). 

the potential impact of changes in variables and risks. 

Reinsurance risk: The risk that QBE is unable to obtain 

insurance from a reinsurer at the right time and at an 

By integrating risk management into business planning, 

QBE aims to monitor and respond to macro changes 

appropriate cost. The inability may emanate from a variety 

in the competitive environment. We conduct quarterly 

of reasons such as unfavourable market conditions.

governance oversight of performance, quarterly 

rate and income monitoring, and monthly price 

adequacy monitoring.

Artificial intelligence: The insurance industry is increasingly 

As a new top risk for QBE, we are exploring pathways 

adopting AI technologies to streamline operations, 

to manage AI related risks via a multi‑faceted approach, 

improve underwriting processes, and enhance customer 

including robust data governance, rigorous testing and 

experiences. However, there are several risks associated 

validation of AI models, ongoing monitoring for biases 

with the use of generative AI in the insurance industry.

and fairness, transparency in algorithmic decision‑making, 

and adherence to legal and ethical standards.

Emerging risks

Autonomous vehicles

As a result of new developments in mechatronics, speed learning and AI there has been 
rapid progress in the field of autonomous machines, which is likely to change the risk 
landscape for various lines of insurance and will have an impact on the sharing economy.

Sustainable procurement

Risk of reputational damage, legal liability or financial loss resulting from 
suppliers engaging in unethical practices, environmental violations, labour abuses 
or other non‑compliance with growing regulatory and disclosure requirements 
on sustainable procurement.

Harmful man-made substances

Many chemicals can be harmful to the environment or health if inhaled, ingested 
or absorbed through the skin, including forever chemicals (e.g. per‑and polyfluoroalkyl 
substances (PFAS), endocrine disruptors) and small particles (fine dust, microplastics 
or man‑made nanoparticles) which may pose risks that are not yet fully revealed. 
Better awareness and understanding around the effects of these substances may 
result in potential claims due to environmental pollution, health‑related liabilities 
and be reflected in the evolving regulatory landscape. 

Labour force

Risks pertaining to the potential challenges and issues relate to the workforce 
(e.g. employee‑related legal liabilities, labour disputes, diversity and inclusion issues, 
talent recruitment and retention).

Biodiversity loss

Insurers may face claims related to property damage, business interruption, or liability 
arising from loss of biodiversity, including species extinction, habitat degradation, 
and ecosystem disruption.

Health system and pandemics

Insurers face risk during and in the post‑effect of pandemics, including managing 
increased claims volume, challenges in underwriting and pricing policies, operational 
disruptions, regulatory changes, reputation risk and long‑term shifts in health trends. 
Economic downturns and market volatility associated with pandemics can also impact 
investment portfolios.

Human rights

Risks related to human rights abuses, labour practices, and social issues within 
our operations and supply chains.

Data ethics

The risk of violation, discrimination, unfair pricing, data bias or other issues relating 
to collecting, generating, analysing and disseminating data, both structured and 
unstructured. Similar to data quality or information reliability, data ethics is a critical 
consideration in feeding AI algorithms.

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20

Climate-related 
risks and opportunities

Our approach to climate change is central to our sustainability strategy 
and we continue to mitigate climate risk through our risk management 
framework. This year, we have continued to progress our net-zero 
commitments, with a focus on engagement across underwriting, investment 
and our suppliers. We continue to develop our metrics, taking data availability 
and reliability into account, as we make progress against our commitments.

Governance

The Group Board approves QBE’s strategic priorities, which 
includes consideration of climate risks and opportunities. It also 
oversees the environmental impact of the Group’s activities 
and operations and sets standards on the Group’s environmental 
responsibilities and practices. 

The Group Board is assisted in its oversight by committees 
composed of a majority of independent directors. In particular, 
the Board committees outlined on page 21 have oversight 
relating to climate‑related matters.

The Group Executive Committee (GEC) has the highest 
level of management oversight of climate‑related matters 
and is supported by the committees outlined on page 21. 
Its responsibilities include overseeing the execution of QBE’s 
sustainability strategy and commitments and managing 
climate‑related risks and opportunities.

The Group Board and GEC participate in education sessions 
to enhance their awareness of, and capability surrounding, 
ESG issues, including climate‑related risks and opportunities. 

QBE is committed to integrating sustainability, including 
climate‑related considerations, into the business. 
Functional representatives with accountability for sustainability 
across the Group collaborate through key management working 
groups and committees to support the GEC in the delivery of 
our strategy, initiatives and reporting. 

QBE and its employees participate in industry and other 
forums to contribute to the dialogue on issues that are 
important to the business, including climate‑related risks, 
the transition to a net‑zero economy, and the development 
of consistent industry standards and approaches around 
climate‑related disclosures.

In 2023

 z

 z

 z

The Group Board continued to oversee 
progress against our 2023–25 Sustainability 
Scorecard. Periodic updates on progress 
were provided during the year.

The Group Board Charter was updated in 
June 2023 and reflects the Board’s overall 
responsibility for environmental, social and 
governance (ESG) issues, including matters 
which were previously delegated to the 
Board Risk & Capital Committee.

In November and December 2023, the Group 
Board Audit Committee and Divisional Board 
Audit Committee Chairs were updated on key 
reporting developments, including on the 
recently issued International Sustainability 
Standard Board (ISSB) standards.

 z

Climate change continues to be one of the top 
ESG risks identified by the ESG Risk Committee 
as part of its annual ESG risk horizon scan. 

 z Membership of the Environmental and Social 
(E&S) GEC Sub-Committee was expanded 
to include selected divisional CEOs to ensure 
consistent information flows between Group 
and Divisions. 

 z

Sustainability-related non-financial measures 
are to be included in the executive long-term 
incentive plan from 2024, as detailed in the 
Remuneration Report on pages 42 to 64.

20

21

Climate governance framework

Group Board

Oversight of climate-related risks and opportunities

Risk & Capital Committee

Audit Committee

People & Remuneration Committee

Oversees the effectiveness of the 
Group’s risk management framework 
and strategies including the consideration 
of adequacy of awareness, understanding 
and management of its risks, 
including ESG risk.

Oversees the integrity of the 
Group's financial reporting, including 
climate‑related financial disclosures.

Oversees the remuneration policy, 
including the consideration of 
sustainability‑related non‑financial 
measures within incentive plans.

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 OVERSIGHT

Group Executive Committee

REPORT 

Develop and implement the strategic approach to climate change

Environmental and  
Social (E&S) Sub-Committee

Executive Risk  
Committee (ERC)

Group Underwriting  
Committee (GUC)

3

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Supports executive decision making 
related to progressing the sustainability 
strategy and initiatives and targets in 
the Sustainability Scorecard, including 
climate‑related commitments. Comprises 
members of the GEC and management. 

Chair: Group Executive,  
Corporate Affairs and Sustainability 
Meetings in 2023: 7

Oversees the integration of ESG risk 
into the risk management framework. 
Comprises members of the GEC. 
Responsibilities include risk identification, 
measurement and mitigation.

Supports the GEC in meeting its 
responsibilities to develop, implement 
and review the Group’s underwriting 
and reinsurance strategy, business 
plan and underwriting governance, 
including ESG issues and opportunities.

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Chair: Group Chief Risk Officer 
Meetings in 2023: 5

Chair: Group Chief Underwriting Officer
Meetings in 2023: 4

’

Climate-related 

risks and opportunities

Our approach to climate change is central to our sustainability strategy 

and we continue to mitigate climate risk through our risk management 

framework. This year, we have continued to progress our net-zero 

commitments, with a focus on engagement across underwriting, investment 

and our suppliers. We continue to develop our metrics, taking data availability 

and reliability into account, as we make progress against our commitments.

Governance

The Group Board approves QBE’s strategic priorities, which 

includes consideration of climate risks and opportunities. It also 

oversees the environmental impact of the Group’s activities 

and operations and sets standards on the Group’s environmental 

responsibilities and practices. 

The Group Board is assisted in its oversight by committees 

composed of a majority of independent directors. In particular, 

the Board committees outlined on page 21 have oversight 

relating to climate‑related matters.

The Group Executive Committee (GEC) has the highest 

level of management oversight of climate‑related matters 

and is supported by the committees outlined on page 21. 

Its responsibilities include overseeing the execution of QBE’s 

sustainability strategy and commitments and managing 

climate‑related risks and opportunities.

The Group Board and GEC participate in education sessions 

to enhance their awareness of, and capability surrounding, 

ESG issues, including climate‑related risks and opportunities. 

QBE is committed to integrating sustainability, including 

climate‑related considerations, into the business. 

Functional representatives with accountability for sustainability 

across the Group collaborate through key management working 

groups and committees to support the GEC in the delivery of 

our strategy, initiatives and reporting. 

QBE and its employees participate in industry and other 

forums to contribute to the dialogue on issues that are 

important to the business, including climate‑related risks, 

the transition to a net‑zero economy, and the development 

of consistent industry standards and approaches around 

climate‑related disclosures.

In 2023

 z

The Group Board continued to oversee 

progress against our 2023–25 Sustainability 

Scorecard. Periodic updates on progress 

were provided during the year.

 z

The Group Board Charter was updated in 

June 2023 and reflects the Board’s overall 

responsibility for environmental, social and 

governance (ESG) issues, including matters 

which were previously delegated to the 

Board Risk & Capital Committee.

 z

In November and December 2023, the Group 

Board Audit Committee and Divisional Board 

Audit Committee Chairs were updated on key 

reporting developments, including on the 

recently issued International Sustainability 

Standard Board (ISSB) standards.

 z

Climate change continues to be one of the top 

ESG risks identified by the ESG Risk Committee 

as part of its annual ESG risk horizon scan. 

 z Membership of the Environmental and Social 

(E&S) GEC Sub-Committee was expanded 

to include selected divisional CEOs to ensure 

consistent information flows between Group 

and Divisions. 

 z

Sustainability-related non-financial measures 

are to be included in the executive long-term 

incentive plan from 2024, as detailed in the 

Remuneration Report on pages 42 to 64.

5

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 OVERSIGHT

Management Committees

REPORT 

Integration across QBE's business

Sustainability Committee

Divisional Committees

ESG Risk Committee

Comprises senior representatives 
from across the Group who support 
the operational execution of QBE’s 
sustainability strategy and commitments.

Support the E&S Sub‑Committee 
on alignment and integration of 
the Group’s sustainability and 
climate strategy across the regions, 
and support the Divisional Management 
on all related matters.

Net-Zero in Underwriting 
Steering Committee

Oversees the net‑zero in underwriting 
program of work reporting to the GUC 
and E&S Sub‑Committee and comprises 
cross‑functional representatives.

Assists the ERC in managing ESG 
risks across the Group, which includes 
overseeing the Environmental and 
Social Risk Framework and its 
implementation, considering and 
recommending policy positions on 
ESG risks that impact underwriting, 
investment and operations across the 
Group to the ERC, and overseeing 
climate scenario analysis.

6

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22

Strategy

QBE has a strong focus on climate-related 
risks and opportunities through our 
sustainability strategy focus areas. 

As an international insurer and reinsurer, we see first‑hand the 
impacts of a changing climate on our customers, communities 
and partners. This is why two of our three sustainability strategy 
focus areas relate to the role we play in addressing climate risks 
and opportunities: 

1. 

Foster an orderly and inclusive  
transition to a net‑zero economy

2.  Enable a sustainable and  

resilient workforce

3. 

Partner for growth through innovative, 
sustainable and impactful solutions

Our first focus area outlines our support for an orderly and 
inclusive transition to a net‑zero emissions economy, aligned 
with limiting warming to 1.5°C by the end of 2100. We recognise 
the importance of addressing climate change and incorporating 
climate‑related risks and opportunities into our decision‑making, 
facilitating a resilient future for our business and our customers. 
Further, our third focus area looks at how we can explore 
ways to co‑create solutions to meet the changing needs of our 
customers, and support communities affected by climate 
impacts and the net‑zero transition. Our landscape is changing, 
presenting opportunities to innovate and partner on impactful 
solutions through our investments, supplier and broker 
relationships, the QBE Foundation and QBE Ventures.

Two of the top three sustainability topics identified through 
our sustainability materiality assessment this year were 
climate‑related, specifically, natural disaster resilience 
and, climate change transition and emissions reduction. 

We aim to influence through advocacy, either directly or through 
industry bodies and have a focus on resilience to extreme 
weather and emissions reduction by the insurance industry. 

Through industry partnerships, we can share our experience 
and knowledge to stimulate investment into the area of climate 
finance to improve natural disaster resilience in the face 
of a changing climate. For example, QBE is a member of the 
Hazards Insurance Partnership (HIP), a partnership between 
the Australian Government and the insurance industry, managed 
by the National Emergency Management Agency. Through the 
HIP, the Australian Government and insurers are working 
together with the aim of addressing insurance affordability and 
availability issues as driven by natural hazard risk, to reduce risk 

for communities and improve Australia’s resilience to natural 
hazards. In 2023, QBE continued to play an important role 
in the Insurance Council of Australia (ICA) committees and 
working groups, contributing to the national debate on improved 
land use planning, building codes, relocation of communities 
with repeated flood impacts, investment in community resilience 
to reduce risk and insurance premiums, the net‑zero transition, 
and the value of nature for a more resilient future.

We seek to influence our stakeholders through engagement, 
including our supply chain, and external investment managers. 
We are also engaging with customers, initially focused on our 
Australasia, Canadian and European businesses with which we 
have a material commercial relationship, based on gross written 
premium; and who operate in higher‑emitting sectors. In our own 
operations, we continue to progress our net‑zero roadmap and 
this year maintained our carbon neutrality 1 for a defined inventory 
of greenhouse gas emissions related to our global operations 2.

To further our understanding of climate risks and opportunities, 
we have continued to undertake physical and transition scenario 
analysis. Understanding the changing nature of weather‑related 
risks is critical to considering how we can help our customers 
manage their own physical risks and how we price for, 
and manage, the accumulation of these risks.

We have undertaken a global, economy‑wide transition scenario 
analysis which has highlighted the risks and opportunities 
associated with the pathways to achieving net‑zero emissions. 
While there is more work to be done to deepen our understanding 
and response to the decarbonisation journey, current data 
indicates QBE is broadly resilient. As a global insurer and 
reinsurer, we have the ability to support the transition across 
many industries and regions through the products and partners 
we work with across our insurance portfolio, investment portfolio 
and own operations. 

Our net-zero commitments

QBE has made net‑zero commitments for our own operations 
by 2030, and our investment and underwriting portfolios by 
2050. Through these commitments we seek to contribute to the 
reduction of real‑world emissions to mitigate the level of warming 
this century, and the most severe risks to our customers, society, 
economy and environment. 

QBE’s ability to meet our net‑zero commitments is reliant 
on many factors, including the progress individuals, businesses 
and economies can make to transition to net‑zero collectively, 
particularly in developed countries with net‑zero commitments. 
It also depends on the development of new technology 
associated with carbon removal and emissions reduction.

1  Based on the RE100 Climate Group’s materiality threshold guidance which excludes countries with small electricity loads (<100MWh/year 
and up to a total of 500MWh/year) and where it is not feasible to source renewable electricity via any credible sourcing options. We meet 
our RE100 commitment through a combination of contracts with electricity suppliers and purchasing unbundled energy attribute certificates. 

2  Defined inventory includes some purchased goods and services, capital goods, fuel‑ and energy‑related activities, waste generated 
in operations, business travel, employee commuting and downstream leased assets. Please refer to our Sustainability Data Book 
(data book) for further information.

22

Strategy

QBE has a strong focus on climate-related 

risks and opportunities through our 

sustainability strategy focus areas. 

As an international insurer and reinsurer, we see first‑hand the 

impacts of a changing climate on our customers, communities 

and partners. This is why two of our three sustainability strategy 

focus areas relate to the role we play in addressing climate risks 

and opportunities: 

1. 

Foster an orderly and inclusive  

transition to a net‑zero economy

2.  Enable a sustainable and  

resilient workforce

3. 

Partner for growth through innovative, 

sustainable and impactful solutions

Our first focus area outlines our support for an orderly and 

inclusive transition to a net‑zero emissions economy, aligned 

with limiting warming to 1.5°C by the end of 2100. We recognise 

the importance of addressing climate change and incorporating 

for communities and improve Australia’s resilience to natural 

hazards. In 2023, QBE continued to play an important role 

in the Insurance Council of Australia (ICA) committees and 

working groups, contributing to the national debate on improved 

land use planning, building codes, relocation of communities 

with repeated flood impacts, investment in community resilience 

to reduce risk and insurance premiums, the net‑zero transition, 

and the value of nature for a more resilient future.

We seek to influence our stakeholders through engagement, 

including our supply chain, and external investment managers. 

We are also engaging with customers, initially focused on our 

Australasia, Canadian and European businesses with which we 

have a material commercial relationship, based on gross written 

premium; and who operate in higher‑emitting sectors. In our own 

operations, we continue to progress our net‑zero roadmap and 

this year maintained our carbon neutrality 1 for a defined inventory 

of greenhouse gas emissions related to our global operations 2.

To further our understanding of climate risks and opportunities, 

we have continued to undertake physical and transition scenario 

analysis. Understanding the changing nature of weather‑related 

risks is critical to considering how we can help our customers 

manage their own physical risks and how we price for, 

and manage, the accumulation of these risks.

We have undertaken a global, economy‑wide transition scenario 

climate‑related risks and opportunities into our decision‑making, 

analysis which has highlighted the risks and opportunities 

facilitating a resilient future for our business and our customers. 

associated with the pathways to achieving net‑zero emissions. 

Further, our third focus area looks at how we can explore 

ways to co‑create solutions to meet the changing needs of our 

customers, and support communities affected by climate 

While there is more work to be done to deepen our understanding 

and response to the decarbonisation journey, current data 

indicates QBE is broadly resilient. As a global insurer and 

impacts and the net‑zero transition. Our landscape is changing, 

reinsurer, we have the ability to support the transition across 

presenting opportunities to innovate and partner on impactful 

solutions through our investments, supplier and broker 

relationships, the QBE Foundation and QBE Ventures.

many industries and regions through the products and partners 

we work with across our insurance portfolio, investment portfolio 

and own operations. 

Two of the top three sustainability topics identified through 

our sustainability materiality assessment this year were 

climate‑related, specifically, natural disaster resilience 

and, climate change transition and emissions reduction. 

Our net-zero commitments

QBE has made net‑zero commitments for our own operations 

by 2030, and our investment and underwriting portfolios by 

We aim to influence through advocacy, either directly or through 

2050. Through these commitments we seek to contribute to the 

industry bodies and have a focus on resilience to extreme 

reduction of real‑world emissions to mitigate the level of warming 

weather and emissions reduction by the insurance industry. 

this century, and the most severe risks to our customers, society, 

Through industry partnerships, we can share our experience 

economy and environment. 

and knowledge to stimulate investment into the area of climate 

QBE’s ability to meet our net‑zero commitments is reliant 

finance to improve natural disaster resilience in the face 

on many factors, including the progress individuals, businesses 

of a changing climate. For example, QBE is a member of the 

and economies can make to transition to net‑zero collectively, 

Hazards Insurance Partnership (HIP), a partnership between 

particularly in developed countries with net‑zero commitments. 

the Australian Government and the insurance industry, managed 

It also depends on the development of new technology 

by the National Emergency Management Agency. Through the 

associated with carbon removal and emissions reduction.

HIP, the Australian Government and insurers are working 

together with the aim of addressing insurance affordability and 

availability issues as driven by natural hazard risk, to reduce risk 

Operations

As a business, we’ve committed to net‑zero operations by 2030 for our Scope 1, 2 and material Scope 3 operational emissions, 
as outlined in our data book 1. In 2023, we continued to progress our commitment to net‑zero by 2030 for our global operations. 
Across each of our divisions, we formed working groups to identify further initiatives to reduce our operational emissions. These are 
summarised in our net‑zero operational roadmap, which will continue to evolve over time. Fuel use for our fleet vehicles contributes 
the most of our Scope 1 emissions, and this year we continued transitioning our fleet to low emissions vehicles. We also continued 
to optimise the office space we occupy in line with our new ways of working, releasing surplus floorspace and implementing energy 
efficiency measures across our operations. 

As we provide a hybrid working environment, our commuting and working from home emissions form part of our operational 
emissions footprint, and we are working with our people to identify ways to reduce these emissions. This includes offering discounts 
on public transport in certain countries and raising awareness of government lease schemes for electric and hybrid vehicles, 
where available. To further embed climate considerations into operational decision making, we have set our internal carbon price 
at $65 per metric tonne of carbon dioxide equivalent for 2024. We will use this to support internal investment in emission reduction 
initiatives as well as any expenditure required to maintain our environmental commitments. In 2023, we met our RE100 target for 
the third year, with 100% of our electricity use across QBE offices (excluding Bermuda and Pacific Islands) certified as renewable, 
supporting our commitment to 100% renewable electricity by 2025 2. In 2023, we also maintained carbon neutrality 1 by purchasing 
renewable energy and fire abatement carbon offset certificates to cover residual emissions for a defined inventory 3 of greenhouse 
gas emissions related to our global operations, as described in our data book. 

Our net zero roadmap 

Improve

energy efficiency

Reduce

business travel

How we are doing it
Use

renewable electricity

Switch to

hybrid and electric fleet

Purchase

offsets and removals

2023

2024

When we are doing it
2025

2026

2027–29

2019

QBE
Baseline

Support employees 
in switching 
to renewable 
energy, reducing 
energy and 
sourcing hybrid 
or electric vehicles

Co-create divisional 
level roadmaps 
to 2030

Set our internal 
carbon price 
at a level 
to incentivise 
low-carbon 
behaviour and 
investment

Meet 2025 
interim targets

100% renewable 
electricity

30% reduction in 
Scope 1 and 2 from 
a 2018 baseline

25% reduction in 
energy use from 
a 2019 baseline

Implement emissions reduction initiatives

Explore carbon removal partnerships

Maintain carbon neutrality for a defined inventory of greenhouse gas emissions related to our global operations

2030

Source carbon 
removal 
certificates for 
residual emissions

Net-
Zero
Emissions
by 2030

Supply chain 

In 2023, we began climate‑related discussions with strategic suppliers across our global supply chain, centred around climate 
risks, opportunities and measuring and reducing emissions. Initially, a pilot supplier engagement project for 55 suppliers was 
launched in the Australia Pacific division for the Claims and Indirect Procurement teams, and the Global IT Procurement team. 
Strategic suppliers were selected, based on QBE’s annual spend and importance to QBE’s operations. Engagement involved sending 
a survey out to the selected suppliers with an invitation to join an engagement session to discuss QBE’s public targets and obtain 
details of the supplier’s approach to transitioning to a low‑carbon economy. Details of emissions calculations, target setting and 
ongoing sustainability initiatives were collected from the suppliers. This program was then extended to 74 more strategic suppliers 
from our global supply chain across the Procurement teams in other divisions.

Through this engagement we have identified several emission reduction opportunities that are being explored within the business. 
Going forward, we are focusing on addressing these opportunities and working to set targets for these suppliers by the end of 2025.

1  Based on the RE100 Climate Group’s materiality threshold guidance which excludes countries with small electricity loads (<100MWh/year 

and up to a total of 500MWh/year) and where it is not feasible to source renewable electricity via any credible sourcing options. We meet 

our RE100 commitment through a combination of contracts with electricity suppliers and purchasing unbundled energy attribute certificates. 

2  Defined inventory includes some purchased goods and services, capital goods, fuel‑ and energy‑related activities, waste generated 

in operations, business travel, employee commuting and downstream leased assets. Please refer to our Sustainability Data Book 

(data book) for further information.

1  Please refer to our data book (Focus Area 1 and Metrics Criteria) for all definitions, calculations, assumptions and methodologies. 
2  Based on the RE100 Climate Group’s materiality threshold guidance which excludes countries with small electricity loads (<100MWh/year 
and up to a total of 500MWh/year) and where it is not feasible to source renewable electricity via any credible sourcing options. We meet 
our RE100 commitment through a combination of contracts with electricity suppliers and purchasing unbundled energy attribute certificates.

3  Defined inventory includes some purchased goods and services, capital goods, fuel‑ and energy‑related activities, waste generated 

in operations, business travel, employee commuting and downstream leased assets. 

23

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24

Strategy  continued

Investments

At QBE we are driven by our purpose of enabling a more resilient future. QBE seeks to responsibly invest our proprietary assets, 
including our premium income, across the globe. Climate change continues to be the most material ESG risk for QBE, and addressing 
the risks and opportunities associated with climate change will be essential towards aligning our investments portfolio to a net‑zero 
economy. This aligns with our first sustainability focus area, to foster an orderly and inclusive transition to a net‑zero economy, 
and QBE aims to do this through our target setting and tracking, scaling investments in climate solutions, assessing our portfolios' 
exposures to climate risks and opportunities and engaging with investees to decarbonise their operations.

Net-zero in investments

Aligned with our broader climate strategy and our commitment to impact 
and responsible investments, QBE became a member of the Net Zero Asset 
Owners Alliance (NZAOA) in 2020, joining a growing group of institutional 
investors committed to transitioning their investment portfolios to net‑zero 
emissions by 2050. To deliver on our commitment to transition our investment 
portfolio to net‑zero by 2050, we set our initial 2025 intermediate targets 
in 2021 on sub‑portfolio, engagement and financing the transition metrics, 
aligned with the NZAOA Target Setting Protocol. 

In 2023, we have progressed towards our 2025 intermediate targets. 
We continued to invest in climate solutions through an addition of $117 million 
in green bonds in our portfolio and in 2024 we will explore strategies to set 
our 2030 target. For sub‑portfolio 1, we have continued to reduce our equities 
carbon emissions by moving from passive strategies via exchange traded 
funds to tailored mandates with external developed market equity managers. 
Engagement continues to be a critical component of our net‑zero approach, 
and we prioritise engagement with our highest emitters in our investment 
grade corporate credit portfolio, and all external managers, with a key focus 
on our net‑zero 2050 commitment and transition planning. A further update 
on our progress can be found in the metrics and targets section on page 33, 
with further information on our engagement strategy and outcomes below.

Engagement

As asset owners, we have a unique role at the top of the investment value 
chain, and we acknowledge both the responsibilities and opportunities that 
come with this role. Because of this, engagement is our preferred method 
of eliciting impactful change as we believe that engaging in conversation with 
our investees to implement sustainable practices in the transition to net‑zero 
will ultimately be more impactful than divestment. 

In 2023, we continued to engage with all our external managers across 
key climate‑related issues and have seen increased ambition in net‑zero 
commitments, enhancement to scenario analysis capabilities and Scope 3 
measurement. For our top 20 highest emitters in our investment grade 
corporate credit portfolio, we focused on challenging them to set short‑, 
medium‑, and long‑term science‑based emissions reduction goals. We are 
also in discussion with them on a reduction in Scope 1, 2 and material Scope 
3 emissions and the formulation of a decarbonisation strategy with clear 
demonstration that capital expenditure is consistent with achieving net‑zero 
emissions by 2050.

Engagement

All external managers

across our investment portfolio

20 highest emitters

in our investment grade 
corporate credit portfolio

Financing 
the transition

 5% by 2025

of assets under management 
in climate solutions investments

Carbon intensity 
reduction

 25% by 2025

of our Scope 1 and 2 emissions 
in our equity portfolio

1  Sub‑portfolio is one of the four categories of the Net Zero Asset Owners Alliance target setting approach.

At QBE we are driven by our purpose of enabling a more resilient future. QBE seeks to responsibly invest our proprietary assets, 

including our premium income, across the globe. Climate change continues to be the most material ESG risk for QBE, and addressing 

the risks and opportunities associated with climate change will be essential towards aligning our investments portfolio to a net‑zero 

economy. This aligns with our first sustainability focus area, to foster an orderly and inclusive transition to a net‑zero economy, 

and QBE aims to do this through our target setting and tracking, scaling investments in climate solutions, assessing our portfolios' 

exposures to climate risks and opportunities and engaging with investees to decarbonise their operations.

Climate analysis

We have continued to undertake climate‑related analysis of our investments portfolio, such as carbon footprinting and 
high emitting sector exposure, to assess our overall exposure to climate risks and opportunities. In 2023, as a result 
of the implementation of our new investments system, we have been able to undertake analysis on additional asset 
classes due to an increase in data coverage. As data coverage continues to increase and mature, we too will look 
to undertake additional analysis.

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Carbon footprinting
We have assessed the carbon footprint 1 which 
remains in line with our commitment to maintaining 
a low carbon risk rating 2. We use weighted 
average carbon intensity (WACI), which calculates 
the weighted average emissions of a portfolio 
normalised by revenue and measures our 
portfolio’s exposure to carbon‑related potential 
market and regulatory risks. Our WACI of 11.45 
tCO2e/$m sales is significantly below the MSCI 
USD Investment Grade Corporate Bond Index 
of 124.4 tCO2e/$m sales due to our low exposure 
to high‑emitting sectors.

High-emitting sector exposure

To assess our transition risk, we have also looked at 
the exposure to high‑emitting sectors 3. We expanded 
our analysis in 2023 to include our high yield debt, 
emerging market debt and developed market equities 
portfolios, in addition to investment grade corporate 
credit. Understanding our exposure to these 
industries will enable us to continue to target our 
engagement strategies. Our transition risk remains 
low, with 6.6% of our portfolio exposed to these 
high‑emitting sectors, as a result of our fossil fuel 
exclusions screening criteria.

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Strategy  continued

Investments

Net-zero in investments

Aligned with our broader climate strategy and our commitment to impact 

and responsible investments, QBE became a member of the Net Zero Asset 

Owners Alliance (NZAOA) in 2020, joining a growing group of institutional 

investors committed to transitioning their investment portfolios to net‑zero 

emissions by 2050. To deliver on our commitment to transition our investment 

portfolio to net‑zero by 2050, we set our initial 2025 intermediate targets 

in 2021 on sub‑portfolio, engagement and financing the transition metrics, 

aligned with the NZAOA Target Setting Protocol. 

In 2023, we have progressed towards our 2025 intermediate targets. 

We continued to invest in climate solutions through an addition of $117 million 

in green bonds in our portfolio and in 2024 we will explore strategies to set 

our 2030 target. For sub‑portfolio 1, we have continued to reduce our equities 

carbon emissions by moving from passive strategies via exchange traded 

funds to tailored mandates with external developed market equity managers. 

Engagement continues to be a critical component of our net‑zero approach, 

and we prioritise engagement with our highest emitters in our investment 

grade corporate credit portfolio, and all external managers, with a key focus 

on our net‑zero 2050 commitment and transition planning. A further update 

on our progress can be found in the metrics and targets section on page 33, 

with further information on our engagement strategy and outcomes below.

Engagement

As asset owners, we have a unique role at the top of the investment value 

chain, and we acknowledge both the responsibilities and opportunities that 

come with this role. Because of this, engagement is our preferred method 

of eliciting impactful change as we believe that engaging in conversation with 

our investees to implement sustainable practices in the transition to net‑zero 

will ultimately be more impactful than divestment. 

In 2023, we continued to engage with all our external managers across 

key climate‑related issues and have seen increased ambition in net‑zero 

commitments, enhancement to scenario analysis capabilities and Scope 3 

measurement. For our top 20 highest emitters in our investment grade 

corporate credit portfolio, we focused on challenging them to set short‑, 

medium‑, and long‑term science‑based emissions reduction goals. We are 

also in discussion with them on a reduction in Scope 1, 2 and material Scope 

3 emissions and the formulation of a decarbonisation strategy with clear 

demonstration that capital expenditure is consistent with achieving net‑zero 

emissions by 2050.

Engagement

All external managers

across our investment portfolio

20 highest emitters

in our investment grade 

corporate credit portfolio

Financing 

the transition

 5% by 2025

of assets under management 

in climate solutions investments

Carbon intensity 

reduction

 25% by 2025

of our Scope 1 and 2 emissions 

in our equity portfolio

1  Sub‑portfolio is one of the four categories of the Net Zero Asset Owners Alliance target setting approach.

Target Setting Protocol and its annex.

1  Our carbon footprinting analysis has been completed on the Scope 1 and 2 weighted average carbon intensity of our investment grade 

corporate credit portion of our AUM.

2  Carbon risk rating measures exposure to carbon intensive companies. MSCI Carbon Risk is categorised as Very Low (<15), Low (15 to <70), 

Moderate (70 to <250), High (250 to <525) and Very High (>=525). 

3  We use Global Industry Classification Standard (GICS) for our high‑emitting sector classification, a decision which is informed by the NZAOA 

n
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200

100

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17.9

14.5

13.1

11.5

Dec 2020

Dec 2021

Dec 2022

Dec 2023

QBE investment grade corporate credit

MSCI USD IG Corporate Bond Index

5

4

3

2

1

0

Automotive

Materials/
Cement

Transportation

Utilities

Oil & gas

0%

0.8%

0.8%

0.8%

’

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Strategy  continued

Underwriting

Although QBE withdrew from the Net Zero Insurance Alliance (NZIA) in May 2023, QBE’s focus on our sustainability agenda remains 
unchanged and continues to be driven by our purpose of enabling a more resilient future. Our commitment of a net‑zero underwriting 
portfolio by 2050 aligns with our commitment to a net‑zero investment portfolio by 2050 and net‑zero in our own operations by 2030. 
This is subject to the availability of relevant methodologies, data quality and external factors such as development of technologies.

Our net‑zero in underwriting strategy focuses on three important areas: 

1.  Customer engagement and insights: understanding our priority customers’ net‑zero ambitions and plans.

2.  Innovative products and services: exploring opportunities to further expand our offerings in support of the transition. 

3.  Emissions modelling and tracking: understanding and tracking the emissions of our underwriting portfolio and how 

we can identify and address material data gaps.

Customer engagement and insights

Innovative products and services 

Engagement is key because our ability to reach a net‑zero 
underwriting portfolio is dependent on our customers’ ability 
to reduce their own emissions and ultimately become net 
zero. Initially, we are focused on customers in our Australasia, 
Canadian and European businesses which:

•  we have a material commercial relationship with, based 

on gross written premium; and

•  operate in higher‑emitting sectors (e.g. fossil fuel 
extraction and use; transportation; agriculture), 
defined as priority customers.

Engagement with customers allows us to better understand 
how we can help support them to reduce their emissions. 
We look to engage at least 50 priority customers at the 
time of renewal to gather data that we have not previously 
captured to understand their net‑zero ambitions and how 
they plan to achieve these through decarbonisation efforts. 

Customer insights are invaluable in refining our net‑zero 
underwriting approach, helping us to identify areas for 
improvement, guiding product and service innovation, 
and aligning our efforts with customers’ expectations 
by co‑creating solutions.

In July 2023, we took another step towards aligning our 
underwriting capabilities with the transition by launching 
insurance for Australian renewable energy projects. 
We were the first insurer in the Australian market to offer 
‘cradle to grave’ coverage across a project’s lifecycle: 
from construction of renewable energy infrastructure, 
through to operation, upgrading and decommissioning. 

Emissions modelling and tracking 

We support emissions reporting to provide transparency and 
to enable progress on transition planning across our value 
chain, but recognise that poor data capture and quality may 
result in inaccurate estimations of emissions and of progress 
on reductions. Insurers, such as QBE, have a material data 
challenge in measuring and disclosing attributable emissions 
in relation to their underwriting portfolios as policyholders can 
range from small and medium enterprises (SMEs), with limited 
publicly available emissions data, through to large corporates, 
where emissions disclosures are yet to be standardised. 
The initiative focuses on commercial lines and private motor, 
subject to available methodologies, data and regulations.

Our work is ongoing, as emissions data coverage and quality 
is expected to continue to improve globally, driven predominantly 
by growth in sustainability reporting regulations. QBE remains 
focused on supporting an orderly and inclusive transition 
to a net‑zero economy through better data and reporting 
to inform decision‑making.

Catastrophe modelling

QBE has a global Catastrophe Accumulation Management team. This year we established a Catastrophe Modelling 
Research team, which will advance our in‑house ability to validate and customise our models, including considerations 
for potentially unaccounted impacts of climate change. We also continue to collaborate with the external partners 
(model vendors, reinsurance brokers, science community) to stay across advancements in science and technology. 
The Catastrophe Accumulation Management team regularly refreshes the catastrophe models to keep them aligned with 
the evolving extreme weather risk we are facing. The new research team has increased rigour and scientific knowledge 
to the model maintenance process. 

26

Strategy  continued

Underwriting

Although QBE withdrew from the Net Zero Insurance Alliance (NZIA) in May 2023, QBE’s focus on our sustainability agenda remains 

unchanged and continues to be driven by our purpose of enabling a more resilient future. Our commitment of a net‑zero underwriting 

portfolio by 2050 aligns with our commitment to a net‑zero investment portfolio by 2050 and net‑zero in our own operations by 2030. 

This is subject to the availability of relevant methodologies, data quality and external factors such as development of technologies.

Our net‑zero in underwriting strategy focuses on three important areas: 

1.  Customer engagement and insights: understanding our priority customers’ net‑zero ambitions and plans.

2.  Innovative products and services: exploring opportunities to further expand our offerings in support of the transition. 

3.  Emissions modelling and tracking: understanding and tracking the emissions of our underwriting portfolio and how 

we can identify and address material data gaps.

Customer engagement and insights

Innovative products and services 

Engagement is key because our ability to reach a net‑zero 

In July 2023, we took another step towards aligning our 

underwriting portfolio is dependent on our customers’ ability 

underwriting capabilities with the transition by launching 

to reduce their own emissions and ultimately become net 

insurance for Australian renewable energy projects. 

zero. Initially, we are focused on customers in our Australasia, 

We were the first insurer in the Australian market to offer 

Canadian and European businesses which:

•  we have a material commercial relationship with, based 

on gross written premium; and

‘cradle to grave’ coverage across a project’s lifecycle: 

from construction of renewable energy infrastructure, 

through to operation, upgrading and decommissioning. 

•  operate in higher‑emitting sectors (e.g. fossil fuel 

extraction and use; transportation; agriculture), 

defined as priority customers.

Emissions modelling and tracking 

We support emissions reporting to provide transparency and 

Engagement with customers allows us to better understand 

to enable progress on transition planning across our value 

how we can help support them to reduce their emissions. 

chain, but recognise that poor data capture and quality may 

We look to engage at least 50 priority customers at the 

time of renewal to gather data that we have not previously 

captured to understand their net‑zero ambitions and how 

result in inaccurate estimations of emissions and of progress 

on reductions. Insurers, such as QBE, have a material data 

challenge in measuring and disclosing attributable emissions 

they plan to achieve these through decarbonisation efforts. 

in relation to their underwriting portfolios as policyholders can 

Customer insights are invaluable in refining our net‑zero 

underwriting approach, helping us to identify areas for 

improvement, guiding product and service innovation, 

and aligning our efforts with customers’ expectations 

by co‑creating solutions.

range from small and medium enterprises (SMEs), with limited 

publicly available emissions data, through to large corporates, 

where emissions disclosures are yet to be standardised. 

The initiative focuses on commercial lines and private motor, 

subject to available methodologies, data and regulations.

Our work is ongoing, as emissions data coverage and quality 

is expected to continue to improve globally, driven predominantly 

by growth in sustainability reporting regulations. QBE remains 

focused on supporting an orderly and inclusive transition 

to a net‑zero economy through better data and reporting 

to inform decision‑making.

Catastrophe modelling

QBE has a global Catastrophe Accumulation Management team. This year we established a Catastrophe Modelling 

Research team, which will advance our in‑house ability to validate and customise our models, including considerations 

for potentially unaccounted impacts of climate change. We also continue to collaborate with the external partners 

(model vendors, reinsurance brokers, science community) to stay across advancements in science and technology. 

The Catastrophe Accumulation Management team regularly refreshes the catastrophe models to keep them aligned with 

the evolving extreme weather risk we are facing. The new research team has increased rigour and scientific knowledge 

to the model maintenance process. 

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Our approach to managing climate risk in underwriting

We expect climate change will increasingly impact the frequency and severity of weather‑related natural catastrophes over the long 
term. In the short term, it is often difficult to distinguish the impact of climate change versus the normal variability in weather and 
natural catastrophes. Our underwriting approach, implemented through the business planning process, aims to diversify and manage 
insurance risks accepted and reduce volatility of returns. Climate change is changing our approach to plan for catastrophe risk 
as outlined below.

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Reinsurance

In the short term, we manage the volatility of natural catastrophe 
claims by deploying a comprehensive Group catastrophe 
reinsurance program and considering a wide range of event 
frequency scenarios in our capital planning. In the reinsurance 
market, we continue to see a reduced appetite to provide 
coverage for a frequency of catastrophe events which 
is reflected in recent changes to our reinsurance structure. 
These dynamics are factored into our pricing strategy.

Catastrophe allowance

To reflect the elevated level of catastrophe activity experienced 
in recent years, we aim to establish our annual catastrophe 
allowance above the long‑term average of our modelled 
catastrophe costs, helping to improve the reliability and 
consistency of our results. In 2023, despite a year of heightened 
catastrophe costs and extensive secondary peril activity for the 
industry, our catastrophe costs of $1,092 million were below the 
Group's allowance of $1,175 million. In 2024, our catastrophe 
allowance is $1,280 million.

Portfolio management

Annual renewability

As our insurance policies typically renew annually, we can 
continuously adjust our pricing or underwriting appetite. 

Pricing 

The Catastrophe Accumulation Management team provides 
technical catastrophe pricing for a large number of commercial 
property policies. Pricing factors are refreshed annually to 
reflect current catastrophe accumulations, reinsurance costs, 
required return on capital, and use the best updated catastrophe 
models available. Policies are modelled individually based on 
detailed location level information. With the continued elevated 
catastrophe activity, there is an opportunity to better align our 
technical pricing on more recent activity rather than longer‑term 
average annual losses.

Underwriting appetite

We reduced our property exposure to hurricane risks in 
North America given its significance in terms of its exposure to 
physical climate risk and driving potential losses for our business, 
and we are leveraging our in‑demand QBE Re catastrophe 
capacity to gain access to ancillary lines to better manage 
volatility. As part of our underwriting and investment process, 
QBE applies exclusions to activities that are outside of our risk 
appetite, depending on the specific conditions and circumstances 
of the risk being evaluated. For example, through our positions 
in the Environmental and Social Risk Framework we have 
committed to reduce our exposure to higher transition risks in the 
energy sector including no new coal and oil sands projects. 

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Strategy  continued

Climate‑related risks and opportunities

As one of the world’s largest insurance and reinsurance companies, with operations in all major insurance markets, there are a range of risks 
and opportunities associated with climate change that will present over the short (0–3 years), medium (3–8 years) and long (8+ years) term. 
These timeframes align with the shorter time horizons for business planning and the longer time horizons considered in scenario analysis. 

The table below provides a summary of the key risks and opportunities presented by climate change, and these are supported by 
our climate scenario analysis which is outlined on page 29, as well as our risk processes which are outlined on page 32. These risks 
and opportunities are used to guide our strategy and risk management as well as the development of products and services, 
and investment decision‑making. A summary of our strategic responses are identified for each risk and opportunity below. 

RISKS AND OPPORTUNITIES

RISK 
CATEGORY

POTENTIAL  
IMPACT

STRATEGIC RESPONSE AND RESILIENCE

Risk: Significantly 
increased frequency and 
severity of events related 
to certain perils and regions, 
particularly flood in Europe 
and Australia, and cyclones 
in North America.

Risk: Potential increase 
in climate‑related litigation 
for our customers.

Opportunity: Better support 
our customers through 
enhancing existing, and 
offering new products and 
services as market demand 
shifts and technology evolves 
as part of the transition 
to a net‑zero economy.

Opportunity: Support the 
financing of the transition 
through our investment 
decisions and opportunities.

Opportunity: Reduce our 
operational emissions, 
and potential cost savings, 
through optimising building 
energy efficiency, changes 
to energy sources, and 
transition to a hybrid and 
electric fleet.

Risk: Regulatory pressures 
continue to grow, as policy 
action and stakeholder 
expectations around 
disclosures evolve.

Timeframe: 

Impact: Increased 
claims and 
reinsurance costs.

Timeframe: 

Impact: Increased 
claims, reputation 
risk.

Timeframe: 

Impact: Better 
support our 
customers in 
transition towards 
a net‑zero economy.

Timeframe: 

Impact: Support 
the transition to 
a net‑zero economy.

•  Reduced exposure to North America hurricane risk 

as part of portfolio optimisation initiatives.

•  Manage natural catastrophe volatility by considering 

a wide range of event frequency and severity 
scenarios in capital planning, and through the 
purchase of reinsurance.

•  Establish catastrophe allowance as part of the 
business plan with input from modelled natural 
catastrophe scenarios.

•  Monitor policy wordings and climate‑related claims.

•  Established the Sustainable Energies Unit within our 
International Division in 2022, and in 2023 launched 
the renewable energy solutions in our Australia 
Pacific Division.

• 

Increase our exposure to climate solution investments 
to 5% of assets under management to support 
financing the transition.

•  Evaluate potential opportunities including investing 
in industries that contribute to reducing emissions, 
for instance forestry, as well as energy efficiency 
and exploration of carbon markets.

Timeframe: 

Impact: Support the 
delivery of a net‑zero 
economy, reduced 
operating expenses. 

•  Continue to deliver on our net‑zero operational 
commitments to 2025 and refresh our roadmap 
to net‑zero operations by 2030 across Scope 1, 
2 and a defined inventory of Scope 3 emissions. 

• 

Introduced an internal carbon price. 

Timeframe: 

Impact: Increased 
operating expenses; 
reputational damage 
from failure to 
apply appropriate 
standards.

•  Develop a gap assessment and roadmap for adopting 

Australian Sustainability Reporting Standards and other 
jurisdiction specific requirements. 

•  Closely monitor climate‑related regulations which impact 

QBE’s investments, underwriting and operations.

•  Continue to enhance our assessment on climate‑related 
impacts and improve the quality and availability of data. 

Risk category: 

  Physical  

  Transition

Timeframe:  

  Short to medium term 

  Medium to long term

 
 
28

Strategy  continued

Climate‑related risks and opportunities

As one of the world’s largest insurance and reinsurance companies, with operations in all major insurance markets, there are a range of risks 

and opportunities associated with climate change that will present over the short (0–3 years), medium (3–8 years) and long (8+ years) term. 

These timeframes align with the shorter time horizons for business planning and the longer time horizons considered in scenario analysis. 

The table below provides a summary of the key risks and opportunities presented by climate change, and these are supported by 

our climate scenario analysis which is outlined on page 29, as well as our risk processes which are outlined on page 32. These risks 

and opportunities are used to guide our strategy and risk management as well as the development of products and services, 

and investment decision‑making. A summary of our strategic responses are identified for each risk and opportunity below. 

RISKS AND OPPORTUNITIES

RISK 

CATEGORY

POTENTIAL  

IMPACT

STRATEGIC RESPONSE AND RESILIENCE

Risk: Significantly 

increased frequency and 

severity of events related 

to certain perils and regions, 

particularly flood in Europe 

and Australia, and cyclones 

in North America.

Risk: Potential increase 

in climate‑related litigation 

for our customers.

Opportunity: Better support 

our customers through 

enhancing existing, and 

offering new products and 

services as market demand 

shifts and technology evolves 

as part of the transition 

to a net‑zero economy.

Opportunity: Support the 

financing of the transition 

through our investment 

decisions and opportunities.

Opportunity: Reduce our 

operational emissions, 

and potential cost savings, 

through optimising building 

energy efficiency, changes 

to energy sources, and 

transition to a hybrid and 

electric fleet.

Risk: Regulatory pressures 

continue to grow, as policy 

action and stakeholder 

expectations around 

disclosures evolve.

•  Reduced exposure to North America hurricane risk 

as part of portfolio optimisation initiatives.

•  Manage natural catastrophe volatility by considering 

a wide range of event frequency and severity 

scenarios in capital planning, and through the 

purchase of reinsurance.

•  Establish catastrophe allowance as part of the 

business plan with input from modelled natural 

catastrophe scenarios.

•  Monitor policy wordings and climate‑related claims.

•  Established the Sustainable Energies Unit within our 

International Division in 2022, and in 2023 launched 

the renewable energy solutions in our Australia 

Pacific Division.

Timeframe: 

Impact: Increased 

claims and 

reinsurance costs.

Timeframe: 

Impact: Increased 

claims, reputation 

risk.

Timeframe: 

Impact: Better 

support our 

customers in 

transition towards 

a net‑zero economy.

Timeframe: 

Impact: Support 

the transition to 

a net‑zero economy.

• 

Increase our exposure to climate solution investments 

to 5% of assets under management to support 

financing the transition.

•  Evaluate potential opportunities including investing 

in industries that contribute to reducing emissions, 

for instance forestry, as well as energy efficiency 

and exploration of carbon markets.

Timeframe: 

Impact: Support the 

delivery of a net‑zero 

economy, reduced 

operating expenses. 

•  Continue to deliver on our net‑zero operational 

commitments to 2025 and refresh our roadmap 

to net‑zero operations by 2030 across Scope 1, 

2 and a defined inventory of Scope 3 emissions. 

• 

Introduced an internal carbon price. 

Timeframe: 

Impact: Increased 

operating expenses; 

reputational damage 

from failure to 

apply appropriate 

standards.

•  Develop a gap assessment and roadmap for adopting 

Australian Sustainability Reporting Standards and other 

jurisdiction specific requirements. 

•  Closely monitor climate‑related regulations which impact 

QBE’s investments, underwriting and operations.

•  Continue to enhance our assessment on climate‑related 

impacts and improve the quality and availability of data. 

Risk category: 

  Physical  

  Transition

Timeframe:  

  Short to medium term 

  Medium to long term

Scenario analysis

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  Transition

Scope of portfolios

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Underwriting (casualty, financial lines) 

Investment (unlisted property funds)

Investment (fixed income, high yield debt, emerging market debt)

Scenarios

less than 2°C, low emissions consistent with  
Representative Concentration Pathway (RCP) 2.6

greater than 2°C (3.2°C to 5.4°C),  
high emissions consistent with RCP 8.5

Network for Greening the Financial System

Orderly

Net zero 2050

Below 2°C

Disorderly

Divergent net zero

Delayed transition

Hot house 
world

Nationally 
Determined 
Contributions

1.5°C

1.7°C

1.5°C

1.8°C

2.4°C

Current policies

3.0°C+

Timeframe

2030, 2050 and 2090

2025, 2030, 2040 and 2050

Scope of assessment

Hurricane/cyclone/typhoon
Australia, Japan, North America

Convective storm/hail
Australia, North America

Windstorm
Europe

Flood
Australia, Europe

Bushfire
Australia

Wildfire
North America

The analysis considers the impact 
of climate change on the profit of 
each sector globally.

Climate scenario analysis

Catastrophe models

Business planning 
Portfolio management

Capital models  
and planning

Reinsurance  
programs

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30

Strategy  continued

Physical risks and opportunities

QBE’s property exposures most impacted by shorter‑term 
physical risks of climate change are typically driven 
by exposure to North American hurricanes, and perils such 
as floods, bushfires and convective storms. The evaluation 
of the impact is supported by our accumulations management 
process, including regularly updated natural perils models, 
monitoring of property accumulations across the portfolio 
to simulate weather‑related loss potential, budgeting, 
price setting, and the use of reinsurance to protect capital 
and reduce earnings volatility.

Our analysis concludes that the impact of climate change 
will differ significantly across both regions and the type 
of catastrophes. From the perils and regions studied so far, 
flood claims in Europe and Australia potentially could 
be the most impacted; while cyclones and convective 
storms in North America and Australia may take a little 
longer (mid‑century) before the impact of climate change 
becomes more significant.

We have experienced a series of low probability events, 
including Cyclone Gabrielle and the North Island flooding 
events in New Zealand, alongside a series of convective 
storms in North America. However, we remained within our 
planned catastrophe allowance for 2023 and continue to plan 
for elevated catastrophe activity. 

Climate change is one of several drivers of the increasing 
costs of natural disasters globally. This can create volatility 
in QBE’s profitability and is addressed through modelling and 
understanding the risk to grow a portfolio with diversity of location 
and risk, through our pricing and risk selection and through our 
reinsurance and capital management. The global insurance 
market pricing for natural disaster risk has been increasing 
for a range of reasons including concentration of properties 
in areas prone to risk, increasing building costs and increasing 
scarcity of labour and materials, especially where the same 
region is impacted over the short term. Increasingly, regulators 
of financial services industries are seeking to understand how 
climate risk can contribute to an insurance protection gap 
impacting a greater proportion of the population. As insurance 
often enables investment and credit flows, a growing protection 
gap can contribute to financial challenges through compounding 
factors such as a series of natural disasters, with sea level rise 
in the future.

QBE is investing in models and talent to better manage 
our risk and sharing our knowledge and expertise to attract 
investment towards adaptation and emissions reduction for 
a more resilient future. 

To better understand the potential impact of climate change 
on specific perils and regions, over the past few years, we have 
partnered with catastrophe modelling vendors Risk Management 
Solutions, Inc. and AIR Worldwide, and with Aon to analyse 
the scientific literature related to the potential impact of climate 
change on specific perils and regions. We have then enhanced 
our catastrophe models to better understand how extreme 
weather risk may evolve as the climate continues to change 
over the next 30+ years. The scope, scenarios and timeframes 
analysed are summarised on page 29.

These scenarios do not represent forecasts of the impact 
of climate change, and instead are indicative of the potential 
outcomes assuming the scenario occurs. 

Following the conclusion of our analysis, our catastrophe models 
were recalibrated to reflect the potential change indicated 
by scientific literature in order to determine the potential impact 
to net claims costs under each scenario. We have concentrated 
our analysis on the perils and regions relating to QBE’s extreme 
weather exposure.

30

Strategy  continued

Physical risks and opportunities

Transition risks and opportunities

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Climate change is one of several drivers of the increasing 

QBE’s property exposures most impacted by shorter‑term 

costs of natural disasters globally. This can create volatility 

physical risks of climate change are typically driven 

in QBE’s profitability and is addressed through modelling and 

by exposure to North American hurricanes, and perils such 

understanding the risk to grow a portfolio with diversity of location 

as floods, bushfires and convective storms. The evaluation 

and risk, through our pricing and risk selection and through our 

of the impact is supported by our accumulations management 

reinsurance and capital management. The global insurance 

process, including regularly updated natural perils models, 

market pricing for natural disaster risk has been increasing 

monitoring of property accumulations across the portfolio 

for a range of reasons including concentration of properties 

to simulate weather‑related loss potential, budgeting, 

in areas prone to risk, increasing building costs and increasing 

price setting, and the use of reinsurance to protect capital 

scarcity of labour and materials, especially where the same 

and reduce earnings volatility.

region is impacted over the short term. Increasingly, regulators 

of financial services industries are seeking to understand how 

climate risk can contribute to an insurance protection gap 

impacting a greater proportion of the population. As insurance 

often enables investment and credit flows, a growing protection 

gap can contribute to financial challenges through compounding 

factors such as a series of natural disasters, with sea level rise 

in the future.

QBE is investing in models and talent to better manage 

our risk and sharing our knowledge and expertise to attract 

investment towards adaptation and emissions reduction for 

a more resilient future. 

Our analysis concludes that the impact of climate change 

will differ significantly across both regions and the type 

of catastrophes. From the perils and regions studied so far, 

flood claims in Europe and Australia potentially could 

be the most impacted; while cyclones and convective 

storms in North America and Australia may take a little 

longer (mid‑century) before the impact of climate change 

becomes more significant.

We have experienced a series of low probability events, 

including Cyclone Gabrielle and the North Island flooding 

events in New Zealand, alongside a series of convective 

storms in North America. However, we remained within our 

To better understand the potential impact of climate change 

planned catastrophe allowance for 2023 and continue to plan 

on specific perils and regions, over the past few years, we have 

for elevated catastrophe activity. 

partnered with catastrophe modelling vendors Risk Management 

Solutions, Inc. and AIR Worldwide, and with Aon to analyse 

the scientific literature related to the potential impact of climate 

change on specific perils and regions. We have then enhanced 

our catastrophe models to better understand how extreme 

weather risk may evolve as the climate continues to change 

over the next 30+ years. The scope, scenarios and timeframes 

analysed are summarised on page 29.

These scenarios do not represent forecasts of the impact 

of climate change, and instead are indicative of the potential 

outcomes assuming the scenario occurs. 

Following the conclusion of our analysis, our catastrophe models 

were recalibrated to reflect the potential change indicated 

by scientific literature in order to determine the potential impact 

to net claims costs under each scenario. We have concentrated 

our analysis on the perils and regions relating to QBE’s extreme 

weather exposure.

In 2022, we refreshed our climate transition scenario 
analysis to align with six of the latest Network for Greening the 
Financial System scenarios, supported by an external consultant. 
The results show an estimated sectoral impact, measured 
based on percentage change in profit over 2025, 2030 and 
2050. This was used to better understand which segments 
of our insurance and investment portfolios may be exposed 
to high growth or contraction sectors as a result of the transition 
to a net‑zero economy.

Investments 

We assessed QBE's core fixed income (excluding cash and 
cash equivalents), high yield debt and emerging market debt 
(collectively referred to as 'in‑scope assets'), which represents 
88% of Group Investments assets under management (AUM).

The sector impacts shown against the investment portfolio 
are based on the ‘divergent net zero’ scenario, which aligns with 
our commitment to net‑zero, and assumes a disorderly transition 
which is more aligned with the current state of global markets 
and regulation around climate transition.

In relation to the in‑scope assets, QBE continues to be resilient 
with respect to climate transition risks as our investment portfolio 
has limited exposure to highly impacted sectors. 83% of QBE’s 
in‑scope assets are exposed to the Finance and Insurance 
and Central Banks/Sovereign sectors, which are not expected 
to be significantly impacted by the climate transition. 

Climate change transition and emissions reductions are included 
in our broader sustainability considerations within our investment 
decision‑making process.

Our overall exposure to climate‑related risks and opportunities 
is assessed through further analysis of our investments portfolio, 
including carbon footprinting and reviewing residual exposures 
to high‑emitting sectors. Further details are outlined on pages 24 
and 25.

Underwriting 

The ability to classify the Group’s underwriting data at a sectoral 
level remains a challenge and we continue to make investment 
in data, people and systems to allow us to better understand our 
underwriting exposure at a sectoral level. 

We are developing our capability for baselining and measuring 
insurance‑associated emissions based on industry methodologies, 
and approaches to address data gaps, as this will be a key input 
for developing our transition plan.

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Transition risks result from the relative uncertainty created by 
the global shift towards a more sustainable, net‑zero economy. 
Transition risks are very broad in nature and can be difficult 
to quantify or model. For instance, regulatory, geopolitical, and 
social pressures can create material impacts on the operations 
of a business, its reputation, and the value of its assets. 

QBE covers risks across the globe and across many sectors. 
Our analysis continues to focus on where we have a heightened 
transition risk as well as how we can support the transition. 
This includes our evolving product offering, for example, 
the 2023 launch of the renewable energy offering in Australia. 
Transition risk analysis may also support us in reviewing our 
underwriting strategy and portfolio mix.

Further details are outlined on pages 26 and 27. 

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32

Risk management

QBE manages climate risk through integration into decision-making 
and our risk management processes and frameworks. 

QBE has a Risk Management Strategy to ensure we achieve our strategic priorities while also establishing effective governance and 
fundamental principles for the management of risk across all levels of the organisation. Climate change is a component of ESG risk, 
which is classified as a strategic risk sub‑class in our Risk Management Strategy. 

Climate risk management is overseen by the ESG Risk Committee, the Executive Risk Committee at a management level and the 
Board Risk & Capital Committee at a Board level.

Identifying and assessing climate risks 

We have a range of tools and processes to assist with identifying and assessing climate risks.

Environmental and Social (E&S) Risk Framework 
(application, referrals, monitoring)
Climate scenario analysis

Risk and Control Self‑Assessments

ESG risk horizon scan

UNDERWRITING

INVESTMENT

SUPPLY CHAIN

OPERATIONS

–

–

–

–

Each year we undertake an ESG risk horizon scan to identify 
and assess risks and understand how we are mitigating our top 
ESG risks. Climate change continues to be our top ESG risk. 
Climate change has also been identified again this year as one 
of the top risks facing the organisation, as set out in the risk 
management section on pages 16 to 19.

QBE’s Group Risk and Control Self‑Assessment (RCSA) 
Standard sets minimum requirements for identifying, 
documenting, and assessing key risks that QBE faces 
in delivering our strategic and business objectives. The RCSA 
process also requires an assessment of the effectiveness 

of the controls in place to manage those risks. This year we have 
documented the climate‑related risks and controls which will 
be drawn upon in RCSAs going forward.

Scenario analysis is a key tool we use to better understand the 
future potential impacts of climate change from a physical and 
transition perspective. We have undertaken extensive climate 
scenario analysis and the results have been an input into a range 
of strategic and risk processes including catastrophe models, 
executive briefings, business planning, net‑zero planning and 
portfolio optimisation.

Managing climate risks

We use a range of tools and processes to manage and monitor our climate risks, across our underwriting, investment, supply chain 
and our own operations. This year we have introduced an ESG risk dashboard to support management reporting with quantitative 
indicators, where data allows; and we will continue to evolve the dashboard as our data coverage and quality improves.

UNDERWRITING

INVESTMENT

SUPPLY CHAIN

OPERATIONS

Risk appetite as per E&S Risk Framework

Management reporting

Engagement on climate transition and net‑zero

Business continuity plans

–

Portfolio management including annual renewability, 
pricing, underwriting appetite
Catastrophe allowance and reinsurance

Greenwashing risk principles

–

–

–

–

–

–

–

–

–

–

–

QBE has a Risk Management Strategy to ensure we achieve our strategic priorities while also establishing effective governance and 

fundamental principles for the management of risk across all levels of the organisation. Climate change is a component of ESG risk, 

which is classified as a strategic risk sub‑class in our Risk Management Strategy. 

Climate risk management is overseen by the ESG Risk Committee, the Executive Risk Committee at a management level and the 

Board Risk & Capital Committee at a Board level.

Identifying and assessing climate risks 

We have a range of tools and processes to assist with identifying and assessing climate risks.

UNDERWRITING

INVESTMENT

SUPPLY CHAIN

OPERATIONS

Environmental and Social (E&S) Risk Framework 

(application, referrals, monitoring)

Climate scenario analysis

Risk and Control Self‑Assessments

ESG risk horizon scan

Each year we undertake an ESG risk horizon scan to identify 

of the controls in place to manage those risks. This year we have 

and assess risks and understand how we are mitigating our top 

documented the climate‑related risks and controls which will 

ESG risks. Climate change continues to be our top ESG risk. 

be drawn upon in RCSAs going forward.

QBE’s Group Risk and Control Self‑Assessment (RCSA) 

scenario analysis and the results have been an input into a range 

Climate change has also been identified again this year as one 

of the top risks facing the organisation, as set out in the risk 

management section on pages 16 to 19.

Standard sets minimum requirements for identifying, 

documenting, and assessing key risks that QBE faces 

in delivering our strategic and business objectives. The RCSA 

process also requires an assessment of the effectiveness 

Managing climate risks

Scenario analysis is a key tool we use to better understand the 

future potential impacts of climate change from a physical and 

transition perspective. We have undertaken extensive climate 

of strategic and risk processes including catastrophe models, 

executive briefings, business planning, net‑zero planning and 

portfolio optimisation.

Business continuity plans

–

Risk appetite as per E&S Risk Framework

Management reporting

Engagement on climate transition and net‑zero

Portfolio management including annual renewability, 

pricing, underwriting appetite

Catastrophe allowance and reinsurance

Greenwashing risk principles

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

32

Risk management

Metrics and targets 

QBE manages climate risk through integration into decision-making 

and our risk management processes and frameworks. 

We continue to set relevant targets and assess our progress and performance against them.

TARGET

2023

2022

STATUS

MEASURE

Operations

Energy use (GJ)

25% reduction by 2025  
2019 baseline

Renewable electricity use 
(MWh)

100% by 2025 1

Scope 1 and 2 emissions 
(1.5°C trajectory aligned 
science‑based target) (tCO2e)

Scope 1, 2 and material 
Scope 3 emissions (tCO2e) 2

Underwriting 

Customer engagement 

Investments

Engagement

30% reduction by 2025  
2018 baseline

Net‑zero operational emissions  
(Scope 1, 2 and material Scope 3) by 2030  
Restated baseline 3

Engage at least 50 priority customers at time 
of renewal in our Australasia, Canadian and 
European businesses with which we have 
a material commercial relationship, based 
on gross written premium; and who operate 
in higher emitting sectors

• 

• 

All external managers across our 
investment portfolio

20 highest emitters in investment grade 
corporate credit portfolio

182,978
 24%

17,154

100%

7,715
 75%

27,070
 10%

192,429

On track

18,513

Achieved

7,732

Achieved

23,627

In progress

Ongoing

N/A

New target

Achieved

Achieved

Achieved

We use a range of tools and processes to manage and monitor our climate risks, across our underwriting, investment, supply chain 

and our own operations. This year we have introduced an ESG risk dashboard to support management reporting with quantitative 

indicators, where data allows; and we will continue to evolve the dashboard as our data coverage and quality improves.

Financing the transition

Increase our climate solutions investments to 5% 
of assets under management by 2025

4.6% 4

4.8%

On track

UNDERWRITING

INVESTMENT

SUPPLY CHAIN

OPERATIONS

Carbon intensity reduction

25% reduction by 2025 of Scope 1 and 2 
emissions in equity portfolio 5

In progress In progress

On track

Low carbon risk rating

Maintain a low carbon risk rating in the Scope 1 
and 2 weighted average carbon intensity of our 
investment grade corporate credit portfolio 6

11.45 
tCO2e/$m 
sales

13.1 
tCO2e/$m 
sales

Achieved

1   2023 percentage of renewable electricity is based on the RE100 Climate Group's Materiality Threshold guidance which excludes countries 
with small electricity loads (<100 MWh/year and up to a total of 500 MWh/year) and where it is not feasible to source renewable electricity 
via any credible sourcing options. We meet our RE100 commitment through a combination of contracts with electricity suppliers and 
purchasing unbundled energy attribute certificates. This is the total percentage of renewable electricity sourced, not a year‑on‑year 
percentage change.

2   Net‑zero emissions on material Scope 3 includes emissions related to business travel, fuel and energy‑related activities and capital goods. 

Refer to the 2023 Sustainability Data Book – Metrics Criteria for details.

3   In 2021, QBE committed to net‑zero 2030 for Scope 1 and 2 emissions for our global operations, from a 2019 baseline year. This target was 
extended to include material Scope 3 emissions in 2022. Due to the inclusion of additional Scope 3 emissions sources such as those from 
fuel and energy‑related services and capital goods in 2022, we have used 2022 as a baseline for QBE's material Scope 3 2030 commitment.

4  Our infrastructure assets contribution to Climate Solutions is calculated as at 30 September 2023. 
5  We have worked with preferred managers to ensure these are considered in mandate design and implementation, and will continue to track 

and monitor. 

6  Carbon risk measures exposure to carbon intensive companies. MSCI Carbon Risk is categorised as Very Low (<15), Low (15 to <70), 

Moderate (70 to <250), High (250 to <525) and Very High (>=525).

 More details on QBE’s Sustainability Framework and our performance and progress are available in QBE’s 
2023 Sustainability Data Book.

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34

Board of Directors

Michael (Mike) Wilkins AO  BCom, MBA, FCA, FAICD 

Independent Chair

Mike became a non‑executive director of QBE in November 2016 and was appointed Chair in March 
2020. He is Chair of the Governance & Nomination Committee and a member of the Audit, People 
& Remuneration and Risk & Capital Committees. Mike has more than 30 years’ experience in 
financial services. He was the Managing Director and CEO of Insurance Australia Group Limited until 
November 2015 and previously served as Managing Director and CEO of Promina Group Limited 
and Managing Director of Tyndall Australia Limited. He is currently Chair of Medibank Private Limited 
and a non‑executive director of Scentre Group Limited. He previously served as a non‑executive 
director of AMP Limited, Alinta Limited, Maple‑Brown Abbott Limited, The Geneva Association and the 
Australian Business and Community Network. Mike was the founding member of the Australian Business 
Roundtable for Disaster Resilience & Safer Communities from 2013 until his retirement in 2015.

Andrew Horton  BA Natural Sciences, ACA 

Group Chief Executive Officer 

Andrew joined QBE as Group Chief Executive Officer in September 2021. He was previously the 
CEO, and before that the Finance Director, of Beazley Group, a specialist insurer based in the United 
Kingdom with operations in Europe, the United States and Asia. Prior to this, he held various senior 
finance roles in ING, NatWest and Lloyds Bank. Andrew has more than 30 years’ experience across 
insurance and banking, and has extensive experience across international markets.

Yasmin Allen AM  BCom, FAICD 

Independent Director

Yasmin became a non‑executive director of QBE in July 2022. She is a member of the Audit and 
People & Remuneration Committees. Yasmin has more than 20 years’ experience as a company 
director and chair serving companies across a wide range of sectors, including natural resources 
and financial services. She is currently a non‑executive director of Cochlear Limited, Santos Limited 
and ASX Limited. She chairs Tiimely, formally known as Tic Toc Online, a digital home loan platform 
company, the Harrison Riedel Foundation, a charity supporting young mental health, and the Digital 
Skills Organisation. Yasmin is a member of the Federal Government Takeovers Panel and has been 
acting President since 2019 and is a member of Chief Executive Women. She has served as a 
non‑executive director for a number of companies including Insurance Australia Group Limited and 
was the former Chair of Macquarie Group’s Global Infrastructure Funds. She was previously a senior 
investment banking executive specialising in equity markets in Australia and the United Kingdom.

Stephen (Steve) Ferguson BCom, CA, AICD 

Independent Director

Steve became a non‑executive director of QBE in November 2023. He is a member of the Audit and 
Risk & Capital Committees. Steve is an accomplished financial services executive and business leader 
with over 30 years' experience including serving as a Financial Services Leadership partner at Ernst 
& Young (EY) for more than 15 years, where he was also the signing Audit Partner for numerous top 
50 ASX Listed companies. More recently, Steve has held Board level positions across the commercial, 
government and not‑for‑profit sectors for the past six years. Steve is currently serving as the Chair and 
Non Executive Director for Bank Australia Limited and Non‑Executive Director for GenRe Australia 
Limited, GenRe Life Australia Limited, BackTrack Youth Works Limited and for Parkinson’s Australia 
Limited. He is also an external member of the UNSW Sydney Audit Committee and Risk Committee.

Penny James BSC (Hons), ACA 

Independent Director

Penny became a non‑executive director of QBE in January 2024. She is a member of the Risk 
& Capital and People & Remuneration Committees. Penny has over 30 years' experience in the 
financial services industry having held leadership roles in general insurance, life assurance, wealth 
management and asset management businesses. Her previous positions included Chief Executive 
Officer of Direct Line Insurance Group plc (having previously held the role of Chief Financial Officer), 
the Group Chief Risk Officer of Prudential plc and the Group Chief Financial Officer of Omega 
Insurance Holdings plc. Penny has been a Board Member of the Association of British Insurers and 
the Chair of the Financial Conduct Authority Practitioner Panel. She is currently Senior Independent 
Director of Hargreaves Lansdown plc and co‑chair of the FTSE Women Leaders Review. Penny 
is also a non‑executive director of Mitie Group plc.

34

Board of Directors

Michael (Mike) Wilkins AO  BCom, MBA, FCA, FAICD 

Independent Chair

Mike became a non‑executive director of QBE in November 2016 and was appointed Chair in March 

2020. He is Chair of the Governance & Nomination Committee and a member of the Audit, People 

& Remuneration and Risk & Capital Committees. Mike has more than 30 years’ experience in 

financial services. He was the Managing Director and CEO of Insurance Australia Group Limited until 

November 2015 and previously served as Managing Director and CEO of Promina Group Limited 

and Managing Director of Tyndall Australia Limited. He is currently Chair of Medibank Private Limited 

and a non‑executive director of Scentre Group Limited. He previously served as a non‑executive 

director of AMP Limited, Alinta Limited, Maple‑Brown Abbott Limited, The Geneva Association and the 

Australian Business and Community Network. Mike was the founding member of the Australian Business 

Roundtable for Disaster Resilience & Safer Communities from 2013 until his retirement in 2015.

Andrew Horton  BA Natural Sciences, ACA 

Group Chief Executive Officer 

Andrew joined QBE as Group Chief Executive Officer in September 2021. He was previously the 

CEO, and before that the Finance Director, of Beazley Group, a specialist insurer based in the United 

Kingdom with operations in Europe, the United States and Asia. Prior to this, he held various senior 

finance roles in ING, NatWest and Lloyds Bank. Andrew has more than 30 years’ experience across 

insurance and banking, and has extensive experience across international markets.

Yasmin Allen AM  BCom, FAICD 

Independent Director

Yasmin became a non‑executive director of QBE in July 2022. She is a member of the Audit and 

People & Remuneration Committees. Yasmin has more than 20 years’ experience as a company 

director and chair serving companies across a wide range of sectors, including natural resources 

and financial services. She is currently a non‑executive director of Cochlear Limited, Santos Limited 

and ASX Limited. She chairs Tiimely, formally known as Tic Toc Online, a digital home loan platform 

company, the Harrison Riedel Foundation, a charity supporting young mental health, and the Digital 

Skills Organisation. Yasmin is a member of the Federal Government Takeovers Panel and has been 

acting President since 2019 and is a member of Chief Executive Women. She has served as a 

non‑executive director for a number of companies including Insurance Australia Group Limited and 

was the former Chair of Macquarie Group’s Global Infrastructure Funds. She was previously a senior 

investment banking executive specialising in equity markets in Australia and the United Kingdom.

Stephen (Steve) Ferguson BCom, CA, AICD 

Independent Director

Steve became a non‑executive director of QBE in November 2023. He is a member of the Audit and 

Risk & Capital Committees. Steve is an accomplished financial services executive and business leader 

with over 30 years' experience including serving as a Financial Services Leadership partner at Ernst 

& Young (EY) for more than 15 years, where he was also the signing Audit Partner for numerous top 

50 ASX Listed companies. More recently, Steve has held Board level positions across the commercial, 

government and not‑for‑profit sectors for the past six years. Steve is currently serving as the Chair and 

Non Executive Director for Bank Australia Limited and Non‑Executive Director for GenRe Australia 

Limited, GenRe Life Australia Limited, BackTrack Youth Works Limited and for Parkinson’s Australia 

Limited. He is also an external member of the UNSW Sydney Audit Committee and Risk Committee.

Penny James BSC (Hons), ACA 

Independent Director

Penny became a non‑executive director of QBE in January 2024. She is a member of the Risk 

& Capital and People & Remuneration Committees. Penny has over 30 years' experience in the 

financial services industry having held leadership roles in general insurance, life assurance, wealth 

management and asset management businesses. Her previous positions included Chief Executive 

Officer of Direct Line Insurance Group plc (having previously held the role of Chief Financial Officer), 

the Group Chief Risk Officer of Prudential plc and the Group Chief Financial Officer of Omega 

Insurance Holdings plc. Penny has been a Board Member of the Association of British Insurers and 

the Chair of the Financial Conduct Authority Practitioner Panel. She is currently Senior Independent 

Director of Hargreaves Lansdown plc and co‑chair of the FTSE Women Leaders Review. Penny 

is also a non‑executive director of Mitie Group plc.

Tan Le  BCom (Hons), LLB (Hons) 

Independent Director

Tan became a non‑executive director of QBE in September 2020. She is Chair of the People 
& Remuneration Committee and a member of the Governance & Nomination Committee. Tan is the 
founder and CEO of EMOTIV, a neuroinformatics company advancing understanding of the human 
brain. She was previously co‑founder and President of SASme, a wireless technology company. 
Tan has been a contributor at the World Economic Forum (WEF) and previously served on the WEF 
Global Future Council and on the WEF Board of Stewards on Shaping the Future of Information 
& Entertainment.

Kathryn (Kathy) Lisson  BSc (Hons) 

Independent Director

Kathy became a non‑executive director of QBE in September 2016. She is Deputy Chair of the 
People & Remuneration Committee and a member of the Risk & Capital Committee. Kathy has over 
30 years’ experience across insurance and banking in technology, operations and management. 
She was previously Chief Operating Officer for two insurance companies (QBE Europe (a QBE 
regulated entity) and Brit Insurance) and Operational Transformation Director at Barclays Bank, which 
included delivering global solutions in digital technology, cyber security and IT risk. Kathy also held 
executive positions at Bank of Montreal, including as President of its Mortgage Corporation and EVP 
Technology Strategy and Delivery. Kathy was a senior partner at Ernst & Young and Price Waterhouse 
in Canada, leading their insurance and banking advisory practices. Kathy has also held several 
other non‑executive director roles in the United Kingdom and in Canada.

Sir Brian Pomeroy  MA, FCA 

Independent Director

Sir Brian became a non‑executive director of QBE in June 2014. He is Deputy Chair of the Audit 
Committee and a member of the Risk & Capital Committee. He has extensive insurance industry 
experience, including in his previous role as a Nominated Member of the Council of Lloyd’s and as 
Chair of the Independent Commission on Equitable Life Payments. He was formerly a non‑executive 
member of the board of the Financial Conduct Authority in the United Kingdom and a non‑executive 
director on QBE’s European regulated boards. Sir Brian also chaired the United Kingdom Treasury’s 
Financial Inclusion Taskforce, the Payments Council and the Gambling Commission. He was the 
Senior Partner of Deloitte Consulting in the United Kingdom until 1999.

Jann Skinner  BCom, FCA, FAICD 

Independent Director

Jann became a non‑executive director of QBE in October 2014. She is Chair of the Audit Committee, 
Deputy Chair of the Risk & Capital Committee and a member of the Governance & Nomination 
Committee. Jann has over 30 years’ professional experience in audit and accounting with a focus 
on financial services, particularly the insurance industry. She was an audit partner for 17 years 
with PricewaterhouseCoopers before retiring in 2004. Jann is a non‑executive director of Telix 
Pharmaceuticals Limited and Create Foundation Limited. Previously, Jann was a non‑executive 
director of HSBC Bank Australia Limited, Enstar Australia Group and the Tasmanian Public Finance 
Corporation. Jann was also a non‑executive director on QBE’s Australian regulated boards.

Rolf Tolle  Dipl. Pol 

Independent Director

Rolf became a non‑executive director of QBE in March 2016. He is Chair of the Risk & Capital Committee 
and a member of the People & Remuneration and Governance & Nomination Committees. He has 
significant experience in specialist insurance and reinsurance businesses, having held senior positions in 
a number of global companies. He was the first ever Franchise Performance Director at Lloyd’s, for which he 
was awarded the Silver Medal for Services at Lloyd’s, an honour bestowed on only a few individuals since 
its creation in 1917. Rolf is a director of Marco International Insurance Company Limited and British Reserve 
Insurance Company Limited. Rolf was previously a director of Beazley plc and Beazley Furlonge Ltd.

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Peter Wilson  BEco 

Independent Director

Peter became a non‑executive director of QBE in September 2023. He is a member of the Audit and 
Risk & Capital Committees. Peter is an accomplished insurance executive and business leader with 
over 40 years’ experience. He served as Chief Executive Officer of Axis Insurance from 2013 to 2022 
and prior to that was President of United States Insurance. He was with CNA Insurance for more 
than 20 years, including as President and Chief Operating Officer for CNA Specialty. He also served 
as Executive Vice President at AIG, where he managed the commercial public D&O business in the 
United States.

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Retired Independent Director

Eric served as an independent non‑executive director of QBE from September 2020 until his retirement on 10 March 2023. Eric was 
a member of the Audit and Risk & Capital Committees. 

 
 
 
 
 
 
 
 
 
 
 
 
 
36

Group Executive Committee

Andrew Horton   BA Natural Sciences, ACA 

Group Chief Executive Officer

Andrew joined QBE as Group Chief Executive Officer in September 2021. He was previously the 
CEO, and before that the Finance Director, of Beazley Group, a specialist insurer based in the United 
Kingdom with operations in Europe, the United States and Asia. Prior to this, he held various senior 
finance roles in ING, NatWest and Lloyds Bank. Andrew has more than 30 years’ experience across 
insurance and banking, and has extensive experience across international markets.

Inder Singh  BCom 

Group Chief Financial Officer

Inder joined QBE in 2015 and was appointed Group Chief Financial Officer in 2018. His previous 
roles at QBE include Chief Financial Officer for Australian & New Zealand Operations and Group 
Head of Corporate Development and Financial Planning & Analysis. Inder has more than 20 years’ 
experience in financial services spanning property and casualty, life insurance and banking. 
He started his career at Arthur Andersen before working in investment banking in Sydney and 
London with Deutsche Bank and UBS. Prior to joining QBE, he was Group M&A Director at Aviva plc 
in London where he led a number of transformational transactions.

Vivienne (Viv) Bower  BA Organisational Communication, GAICD  Group Executive, 
Corporate Affairs and Sustainability

Viv joined QBE in 2017 and was appointed Group Executive, Corporate Affairs and Sustainability 
in January 2019 and since 2017 has been the Chair for the QBE Global Foundation. She previously 
held senior investor relations and corporate affairs roles, including Group Head of Corporate Affairs 
and Investor Relations at Lendlease, Head of Group Internal Communications at Westpac and Group 
General Manager of Communications at Multiplex Group.

Peter Burton  BSc (Hons) Physics, C Eng 

Group Chief Underwriting Officer

Peter joined QBE in 2008 and was appointed Group Chief Underwriting Officer in September 2023. 
His previous roles in QBE include Executive Director of International Markets for our European 
Operations (with a portfolio covering London, Singapore, Dubai, Canada and the US) and prior 
to that Director Natural Resources. Early in his time at QBE, Peter established the QBE Lloyd’s Asian 
operations. Peter has more than 24 years' experience in the insurance industry. Prior to joining QBE, 
he worked for Marsh in their engineering and energy broking functions. Prior to joining the insurance 
industry, Peter worked in technical and engineering consultancy roles in the UK and internationally.

Jason Harris  BSc (Hons) Geology 

Chief Executive Officer, International

Jason joined QBE as Chief Executive Officer, International in October 2020. Prior to joining QBE, 
Jason held a number of global and international leadership roles at XL Group including as Chief 
Executive, Global Property and Casualty and as Chief Executive, International Property and 
Casualty. He previously worked at AIG/Chartis in several senior roles including Executive Director, 
Commercial Lines. He is an underwriter by background and started his career in offshore energy. 
He has worked in insurance for over 25 years.

Sue Houghton  BA History, ACA 

Chief Executive Officer, Australia Pacific

Sue joined QBE as Chief Executive Officer, Australia Pacific in August 2021. She was previously 
Managing Director, Insurance for the Westpac Group. Sue has more than 20 years’ experience 
in the financial services sector, having held senior leadership and management roles at Wesfarmers 
Insurance, Insurance Australia Group and Arthur J Gallagher. She is a member of the Champions 
of Change Coalition and is a director and immediate past President of the Insurance Council 
of Australia.

 
36

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Amanda Hughes  BCom, MBA, CA, GAICD 

Group Chief People Officer

Amanda joined QBE in June 2020 as Group Head of Culture, Performance and Reward and was 
appointed Group Chief People Officer in December 2021. Prior to joining QBE, she was the Director 
of People and Culture at AMP and she previously held senior HR roles at Lendlease and Macquarie 
Group. Amanda began her career as a chartered accountant and has worked in Sydney, London 
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Andrew Horton   BA Natural Sciences, ACA 

Group Chief Executive Officer

Andrew joined QBE as Group Chief Executive Officer in September 2021. He was previously the 

CEO, and before that the Finance Director, of Beazley Group, a specialist insurer based in the United 

Kingdom with operations in Europe, the United States and Asia. Prior to this, he held various senior 

finance roles in ING, NatWest and Lloyds Bank. Andrew has more than 30 years’ experience across 

insurance and banking, and has extensive experience across international markets.

Inder Singh  BCom 

Group Chief Financial Officer

Inder joined QBE in 2015 and was appointed Group Chief Financial Officer in 2018. His previous 

roles at QBE include Chief Financial Officer for Australian & New Zealand Operations and Group 

Head of Corporate Development and Financial Planning & Analysis. Inder has more than 20 years’ 

experience in financial services spanning property and casualty, life insurance and banking. 

He started his career at Arthur Andersen before working in investment banking in Sydney and 

London with Deutsche Bank and UBS. Prior to joining QBE, he was Group M&A Director at Aviva plc 

in London where he led a number of transformational transactions.

Corporate Affairs and Sustainability

Viv joined QBE in 2017 and was appointed Group Executive, Corporate Affairs and Sustainability 

in January 2019 and since 2017 has been the Chair for the QBE Global Foundation. She previously 

held senior investor relations and corporate affairs roles, including Group Head of Corporate Affairs 

and Investor Relations at Lendlease, Head of Group Internal Communications at Westpac and Group 

General Manager of Communications at Multiplex Group.

Peter Burton  BSc (Hons) Physics, C Eng 

Group Chief Underwriting Officer

Peter joined QBE in 2008 and was appointed Group Chief Underwriting Officer in September 2023. 

His previous roles in QBE include Executive Director of International Markets for our European 

Operations (with a portfolio covering London, Singapore, Dubai, Canada and the US) and prior 

to that Director Natural Resources. Early in his time at QBE, Peter established the QBE Lloyd’s Asian 

operations. Peter has more than 24 years' experience in the insurance industry. Prior to joining QBE, 

he worked for Marsh in their engineering and energy broking functions. Prior to joining the insurance 

industry, Peter worked in technical and engineering consultancy roles in the UK and internationally.

Jason joined QBE as Chief Executive Officer, International in October 2020. Prior to joining QBE, 

Jason held a number of global and international leadership roles at XL Group including as Chief 

Executive, Global Property and Casualty and as Chief Executive, International Property and 

Casualty. He previously worked at AIG/Chartis in several senior roles including Executive Director, 

Commercial Lines. He is an underwriter by background and started his career in offshore energy. 

He has worked in insurance for over 25 years.

Vivienne (Viv) Bower  BA Organisational Communication, GAICD  Group Executive, 

Matt Mansour  MBA 

Group Executive Technology and Operations

Fiona Larnach  BScDipEd, MFin, FCPA, MAICD 

Group Chief Risk Officer

Fiona joined QBE in March 2021 as Group Chief Risk Officer. Prior to joining QBE, she was the Chief 
Risk Officer for Barclays UK. She has also held senior roles at major financial services companies in 
Australia and the United Kingdom, including as Chief Risk Officer, Retail Banking for Commonwealth 
Bank of Australia and as a risk advisory partner at Ernst & Young consulting to insurance, banking 
and wealth management clients, and has worked at Westpac, AMP Limited, GE Mortgage Insurance 
and Citibank.

Matt joined QBE in 2018 as Group Chief Information Officer and was appointed to the Group 
Executive Committee in 2019. Prior to joining QBE, he held senior global roles in Barclays Bank 
and GE Capital. Matt has over 30 years’ experience in technology, operations and digital business 
leadership roles.

Carolyn Scobie  BA, LLB, MA, AGIA, GAICD 

Group General Counsel 
and Company Secretary

Carolyn joined QBE in 2016 as Group General Counsel and Company Secretary. Prior to joining QBE, 
she was Group General Counsel at Goodman Group for 17 years, where she ran a multi‑disciplinary 
legal team. Carolyn has extensive experience in corporate law, compliance, regulatory matters, 
litigation and managing the complexity of multiple jurisdictions.

Jason Harris  BSc (Hons) Geology 

Chief Executive Officer, International

Julie Wood  B Science, Economics, Sociology 

Chief Executive Officer, 
North America

Julie joined QBE as Group Head of Distribution in January 2023 and was then appointed to the role 
Chief Executive Officer, North America in September 2023. She was previously at Marsh as their 
Southeast Partnership & Zonal Leader and a member of their US Executive Committee. Previously, 
she held the position of Zonal Casualty Leader at Marsh in Atlanta. Julie also held several senior 
executive roles at Zurich for 15 years.

Sue Houghton  BA History, ACA 

Chief Executive Officer, Australia Pacific

Sam Harrison  BA (Hons) Economics 

Former Group Chief Underwriting Officer

Sue joined QBE as Chief Executive Officer, Australia Pacific in August 2021. She was previously 

Managing Director, Insurance for the Westpac Group. Sue has more than 20 years’ experience 

in the financial services sector, having held senior leadership and management roles at Wesfarmers 

Insurance, Insurance Australia Group and Arthur J Gallagher. She is a member of the Champions 

of Change Coalition and is a director and immediate past President of the Insurance Council 

of Australia.

Sam joined QBE in 1998 and was appointed Group Chief Underwriting Officer in April 2021. He ceased employment with QBE in April 2023.

Todd Jones  BSc, MBA 

Former Chief Executive Officer, North America

Todd joined QBE in October 2019 as Chief Executive Officer, North America. He ceased employment with QBE in August 2023.

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38

Corporate Governance

QBE is committed to the highest standards of corporate governance. This ensures that 
we have a framework of systems, accountabilities, policies and processes that allows 
us to execute our strategic priorities and deliver on our vision and purpose.

  QBE Group's Corporate Governance Statement can be found at qbe.com/investor-relations/corporate-governance.

Key focus areas for the Board in 2023

Key areas of governance that the Board has focused 
on include:

•  Oversight of delivery and execution of QBE’s Strategic 

Priorities, including:
 — focusing on efforts to further develop an enterprise 
mindset within our people, empowering our staff, 
simplifying processes and removing complexity;
 — supporting more effective knowledge‑sharing within 

enterprise groups and across functions;

 — improving clarity of accountabilities across the organisation; 

 — encouraging the safety‑to‑speak‑up culture to enable 

empowerment and transparency; and

 — reviewing progress on our six strategic priorities, with the 
Board’s focus on the portfolio optimisation and modernise 
our business priorities highlighted below.

•  Review and approval of financial disclosures in accordance 
with the new AASB 17 Insurance Contracts which was 
effective from 1 January 2023.

•  Supporting the delivery of QBE’s sustainability strategy and 

the use of the 2023‑25 Sustainability Scorecard.

•  Considering Group Board composition and renewal including 
the skills, experience and diversity requirements for Board 
membership, as highlighted below.

  Portfolio optimisation

  Modernise our business

•  Overseeing progress in the active management of the 
portfolio mix including the setting of the internal target 
portfolio mix, the reduction in natural perils exposures 
and the reduction in earnings volatility.

•  Overseeing the incorporation of Portfolio optimisation 

guidance in business planning and approach.

•  Overseeing progress and execution of Modernisation 

programmes to build the capabilities that QBE will need 
in order to deliver on its growth ambitions.

•  Overseeing the setting of medium‑term modernisation 

plans for the enterprise, divisions and enabling functions 
including the alignment of underlying processes, 
technology, security and data investments.

Board renewal

• 

reviewing the selection, appointment, renewal and retirement of Board members and considering the diverse range of skills, 
knowledge, experience, age, gender and place of residence that the Board requires;

•  approving the appointment of new Group Board directors as part of QBE’s Board succession planning; and

•  achieving the right balance and diversity within the Board to allow Board to properly undertake and perform its responsibilities.

Non‑executive director (NED) tenure 1

Workforce diversity 1

Number of NEDs

  <3 years 

  3–6 years 

  6–9 years 

  >9 years 

3

1

3

2

Women on 
Group Board

40%

target of 40% by 
2025 (achieved)

Women in leadership  
(Levels 0–3)

40%

target of greater than 40%  
by 2025 (achieved)

1  As at 31 December 2023.

38

39

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Corporate Governance

Directors' Report

FOR THE YEAR ENDED 31 DECEMBER 2023

Your directors present their report on QBE Insurance Group Limited and the entities 
it controlled at, or during, the year ended 31 December 2023.

Directors
Michael Wilkins AO (Chair) 
Andrew Horton 
Yasmin Allen AM
Stephen Ferguson (from 1 November 2023) 
Tan Le 
Kathryn Lisson
Sir Brian Pomeroy
Jann Skinner
Eric Smith (until 10 March 2023)
Rolf Tolle
Peter Wilson (from 1 September 2023)

Penny James was appointed to the Board on 1 January 2024. 

Operating and financial review
Information on the Group’s results, operations, business strategy, prospects and financial position is set out in the operating and 
financial review on pages 6 to 33 of this Annual Report. 

Dividends
The directors are announcing a final dividend of 48 Australian cents per share (2022 30 Australian cents per share). The final dividend 
will be 10% franked (2022 10%). The 2023 full year dividend payout is A$926 million compared with A$580 million for 2022. Further 
details of dividends paid during the year are set out in note 5.4 to the financial statements. 

Activities
The principal activities of QBE during the year were underwriting general insurance and reinsurance risks, management of Lloyd’s 
syndicates and investment management.

Presentation currency
The Group has presented the Financial Report in US dollars because a significant proportion of its underwriting activity is denominated 
in US dollars. The US dollar is also the currency that is widely understood by the global insurance industry, international investors 
and analysts.

Group indemnities
Rule 78 of the Company’s Constitution provides that the Company indemnifies past and present directors, secretaries or other officers 
against any liability incurred by that person as a director, secretary or other officer of the Company or its subsidiaries. The indemnity 
does not apply to any liability (excluding legal costs):

• owed to the Company or a related body corporate (e.g. breach of directors’ duties);

• for a pecuniary penalty under section 1317G or a compensation order under sections 1317H or 1317HA of the Corporations Act 

2001 (Cth) (or a similar provision of the corresponding legislation in another jurisdiction); or

• that is owed to someone other than the Company or a related body corporate and which did not arise out of conduct in good faith.

QBE is committed to the highest standards of corporate governance. This ensures that 

we have a framework of systems, accountabilities, policies and processes that allows 

us to execute our strategic priorities and deliver on our vision and purpose.

  QBE Group's Corporate Governance Statement can be found at qbe.com/investor-relations/corporate-governance.

Key focus areas for the Board in 2023

Key areas of governance that the Board has focused 

on include:

•  Oversight of delivery and execution of QBE’s Strategic 

Priorities, including:

 — focusing on efforts to further develop an enterprise 

mindset within our people, empowering our staff, 

simplifying processes and removing complexity;

 — supporting more effective knowledge‑sharing within 

enterprise groups and across functions;

 — improving clarity of accountabilities across the organisation; 

 — encouraging the safety‑to‑speak‑up culture to enable 

empowerment and transparency; and

 — reviewing progress on our six strategic priorities, with the 

Board’s focus on the portfolio optimisation and modernise 

our business priorities highlighted below.

•  Review and approval of financial disclosures in accordance 

with the new AASB 17 Insurance Contracts which was 

effective from 1 January 2023.

•  Supporting the delivery of QBE’s sustainability strategy and 

the use of the 2023‑25 Sustainability Scorecard.

•  Considering Group Board composition and renewal including 

the skills, experience and diversity requirements for Board 

membership, as highlighted below.

  Portfolio optimisation

  Modernise our business

•  Overseeing progress in the active management of the 

•  Overseeing progress and execution of Modernisation 

portfolio mix including the setting of the internal target 

portfolio mix, the reduction in natural perils exposures 

programmes to build the capabilities that QBE will need 

in order to deliver on its growth ambitions.

and the reduction in earnings volatility.

•  Overseeing the setting of medium‑term modernisation 

•  Overseeing the incorporation of Portfolio optimisation 

plans for the enterprise, divisions and enabling functions 

guidance in business planning and approach.

including the alignment of underlying processes, 

technology, security and data investments.

Board renewal

• 

reviewing the selection, appointment, renewal and retirement of Board members and considering the diverse range of skills, 

knowledge, experience, age, gender and place of residence that the Board requires;

•  approving the appointment of new Group Board directors as part of QBE’s Board succession planning; and

•  achieving the right balance and diversity within the Board to allow Board to properly undertake and perform its responsibilities.

Non‑executive director (NED) tenure 1

Workforce diversity 1

Number of NEDs

  <3 years 

  3–6 years 

  6–9 years 

  >9 years 

3

1

3

2

Women on 

Group Board

40%

target of 40% by 

2025 (achieved)

Women in leadership  

(Levels 0–3)

40%

target of greater than 40%  

by 2025 (achieved)

1  As at 31 December 2023.

The indemnity extends to legal costs other than where:

• in civil proceedings, one or more of the above exclusions apply;

• in criminal proceedings, the person is found guilty;

• the person is liable in proceedings brought by the Australian Securities and Investments Commission (ASIC), a corresponding 

regulator in another jurisdiction or a liquidator (unless as part of the investigation before proceedings are commenced); or

• the court does not grant relief after an application under the Corporations Act 2001 or corresponding legislation in another jurisdiction.

In addition, a deed exists between the Company and each director which includes an indemnity in similar terms to rule 78 of the 
Company’s Constitution.

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40

Directors' Report  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors’ and officers’ insurance
QBE pays a premium each year in respect of a contract insuring directors, secretaries, senior managers and employees of the Group 
together with any natural person who is either a trustee or a member of a policy committee for a superannuation plan established for 
the benefit of the Group’s employees against liabilities past, present or future. The officers of the Group covered by the insurance 
contract include the directors listed on pages 34 and 35 of this Annual Report, the Group General Counsel and Company Secretary, 
Carolyn Scobie, and Group Company Secretary, Peter Smiles.

In accordance with normal commercial practice, disclosure of the amount of premium payable under, and the nature of liabilities 
covered by, the insurance contract is prohibited by a confidentiality clause in the contract.

No such insurance cover has been provided for the benefit of any external auditor of the Group.

Significant changes
There were no significant changes in the Group’s state of affairs during the financial year other than as disclosed in this Annual Report.

Likely developments and expected results of operations
Likely developments in the Group’s operations in future financial years and the expected results of those operations have been included 
in the operating and financial review on pages 6 to 33 of this Annual Report.

Events after balance date
Other than the declaration of the final dividend, no matter or circumstance has arisen since 31 December 2023 that, in the opinion 
of the directors, has significantly affected or may significantly affect the Group’s operations, the results of those operations or the 
Group’s state of affairs in future financial periods.

Material business risks
As a global insurance and reinsurance business, QBE is subject to a substantial variety of business risks. The directors believe 
that effective management of these risks is critical to delivering value for QBE’s stakeholders. It is QBE’s policy to adopt a rigorous 
approach to managing risk throughout the Group. Risk management is a continuous process and an integral part of QBE’s 
governance structure, QBE’s broader business processes and, most importantly, QBE’s culture.

Some of the material business risks that QBE faces include strategic, insurance, credit, market, liquidity, operational, compliance 
and Group risks. Explanations of these risks and their mitigations are set out in detail in note 4 to the financial statements which 
we recommend you read. Further details of how QBE manages risk are set out in the risk management section on pages 16 to 19, 
climate-related risks and opportunities section on pages 20 to 33 and the risk management section of the corporate governance 
statement on the website. 

Meetings of directors 

FULL MEETINGS 
OF DIRECTORS1

MEETINGS 
OF INDEPENDENT
DIRECTORS

MEETINGS OF COMMITTEES

AUDIT

GOVERNANCE & 
NOMINATION

PEOPLE &  
REMUNERATION

RISK & CAPITAL

SUB-COMMITTEES2

Yasmin Allen
 Stephen Ferguson3
Andrew Horton
Tan Le
Kathryn Lisson
Sir Brian Pomeroy
Jann Skinner
Eric Smith3
Rolf Tolle
Michael Wilkins
Peter Wilson3

H

9
2
9
9
9
9
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9
9
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A

9
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9
9
9
9
9
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9
9
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H

6
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6
6
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6
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A

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H

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–
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2

A

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–
–
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H

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–
–
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–
9
9
–

A

–
–
–
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–
–
9
–
8
9
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H

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–
4
4
–
–
–
4
4
–

A

4
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–
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4
–
–
–
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4
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H

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A

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H

4
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–
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–

A

4
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4
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–
–
7
–
1
7
–

H  Number of meetings held while a Board or Committee member.
A  Number of meetings attended while a Board or Committee member.
1  All directors attended all scheduled Board meetings. Some of the 2023 Board meetings were unscheduled and called at short notice, 

resulting in some directors being unable to attend.

2  Ad hoc committees of the Board were convened during the year in relation to the financial results and other reporting matters.
3  Eric Smith retired from the Board effective 10 March 2023. Peter Wilson was appointed to the board effective 1 September 2023. Stephen 

Ferguson was appointed to the board effective 1 November 2023. 

Further meetings occurred during the year, including meetings of the Chair, Group Chief Executive Officer, and meetings of the 
directors with management. Often directors attend meetings of committees of which they are not currently members.

40

Directors' Report  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

Directors’ and officers’ insurance

QBE pays a premium each year in respect of a contract insuring directors, secretaries, senior managers and employees of the Group 

together with any natural person who is either a trustee or a member of a policy committee for a superannuation plan established for 

the benefit of the Group’s employees against liabilities past, present or future. The officers of the Group covered by the insurance 

contract include the directors listed on pages 34 and 35 of this Annual Report, the Group General Counsel and Company Secretary, 

Carolyn Scobie, and Group Company Secretary, Peter Smiles.

In accordance with normal commercial practice, disclosure of the amount of premium payable under, and the nature of liabilities 

covered by, the insurance contract is prohibited by a confidentiality clause in the contract.

No such insurance cover has been provided for the benefit of any external auditor of the Group.

Significant changes

There were no significant changes in the Group’s state of affairs during the financial year other than as disclosed in this Annual Report.

Likely developments and expected results of operations

Likely developments in the Group’s operations in future financial years and the expected results of those operations have been included 

in the operating and financial review on pages 6 to 33 of this Annual Report.

Other than the declaration of the final dividend, no matter or circumstance has arisen since 31 December 2023 that, in the opinion 

of the directors, has significantly affected or may significantly affect the Group’s operations, the results of those operations or the 

Events after balance date

Group’s state of affairs in future financial periods.

Material business risks

As a global insurance and reinsurance business, QBE is subject to a substantial variety of business risks. The directors believe 

that effective management of these risks is critical to delivering value for QBE’s stakeholders. It is QBE’s policy to adopt a rigorous 

approach to managing risk throughout the Group. Risk management is a continuous process and an integral part of QBE’s 

governance structure, QBE’s broader business processes and, most importantly, QBE’s culture.

Some of the material business risks that QBE faces include strategic, insurance, credit, market, liquidity, operational, compliance 

and Group risks. Explanations of these risks and their mitigations are set out in detail in note 4 to the financial statements which 

we recommend you read. Further details of how QBE manages risk are set out in the risk management section on pages 16 to 19, 

climate-related risks and opportunities section on pages 20 to 33 and the risk management section of the corporate governance 

statement on the website. 

Meetings of directors 

MEETINGS 

MEETINGS OF COMMITTEES

FULL MEETINGS 

OF DIRECTORS1

OF INDEPENDENT

DIRECTORS

AUDIT

GOVERNANCE & 

NOMINATION

PEOPLE &  

REMUNERATION

RISK & CAPITAL

SUB-COMMITTEES2

Yasmin Allen

 Stephen Ferguson3

Andrew Horton

Tan Le

Kathryn Lisson

Sir Brian Pomeroy

Jann Skinner

Eric Smith3

Rolf Tolle

Michael Wilkins

Peter Wilson3

H

9

2

9

9

9

9

9

1

9

9

3

A

9

2

9

9

9

9

9

1

9

9

3

H

6

1

–

6

6

6

6

1

6

6

2

A

6

1

–

6

6

6

6

1

6

6

2

H

5

1

–

–

–

5

5

1

–

5

2

A

5

1

–

–

–

5

5

1

–

5

2

H

–

–

–

9

–

–

9

–

9

9

–

A

–

–

–

9

–

–

9

–

8

9

–

H

4

–

–

4

4

–

–

–

4

4

–

A

4

–

–

4

4

–

–

–

4

4

–

H

–

1

–

–

5

5

5

1

5

5

2

A

–

1

–

–

5

5

5

1

5

5

2

H

4

1

5

–

–

–

7

–

1

7

–

A

4

1

4

–

–

–

7

–

1

7

–

H  Number of meetings held while a Board or Committee member.

A  Number of meetings attended while a Board or Committee member.

1  All directors attended all scheduled Board meetings. Some of the 2023 Board meetings were unscheduled and called at short notice, 

resulting in some directors being unable to attend.

2  Ad hoc committees of the Board were convened during the year in relation to the financial results and other reporting matters.

3  Eric Smith retired from the Board effective 10 March 2023. Peter Wilson was appointed to the board effective 1 September 2023. Stephen 

Ferguson was appointed to the board effective 1 November 2023. 

Further meetings occurred during the year, including meetings of the Chair, Group Chief Executive Officer, and meetings of the 

directors with management. Often directors attend meetings of committees of which they are not currently members.

Directorships of listed companies held by the members of the Board 
From 1 January 2021 to 16 February 2024, the following directors also served as directors of the following listed entities: 

DIRECTOR 

POSITION

DATE APPOINTED

DATE CEASED

Michael Wilkins
Medibank Private Limited
Scentre Group Limited
Jann Skinner
Telix Pharmaceuticals Limited
Yasmin Allen
Cochlear Limited
Santos Limited
ASX Limited 

Director
Director

Director

Director
Director
Director

25 May 2017
8 April 2020

19 June 2018

2 August 2010
22 October 2014
9 February 2015

–
–

–

–
–
–

Qualifications and experience of directors
The qualifications and experience of each director are set out on pages 34 and 35 of this Annual Report.

Qualifications and experience of company secretaries
Carolyn Scobie, BA, LLB, MA, AGIA, GAICD 
Carolyn joined QBE in 2016 as Group General Counsel and Company Secretary. Prior to joining QBE, Carolyn was Group 
General Counsel at Goodman Group for 17 years, where she ran a multi-disciplinary legal team. Carolyn has extensive experience 
in corporate law, compliance, regulatory matters, litigation and managing the complexity of multiple jurisdictions.

Peter Smiles, LLB, MBA, FGIA, FCIS, GAICD 
Peter is Group Company Secretary of QBE Insurance Group Limited and a company secretary of various QBE subsidiaries 
in Australia. He has over 30 years of insurance experience, which includes 25 years as a corporate lawyer. In addition to his current 
company secretarial duties, he acts as a corporate lawyer advising Group head office departments.

Directors’ interests and benefits

Ordinary share capital

Directors’ relevant interests, including those of their personal related parties, in the ordinary share capital of the Company at the date 
of this report are as follows:

DIRECTOR

Yasmin Allen
Stephen Ferguson
Andrew Horton
Penny James
Tan Le
Kathryn Lisson
Sir Brian Pomeroy
Jann Skinner
Rolf Tolle
Michael Wilkins
Peter Wilson

NUMBER OF 
SHARES HELD

18,333
–
315,729
–
12,493
52,800
46,215
70,000
79,160
92,559
–

Options and conditional rights

At the date of this report, Andrew Horton has 869,113 conditional rights to ordinary shares of the Company. No executives or directors 
hold options at the date of this report. Details of the schemes under which options and conditional rights are granted are provided 
in the Remuneration Report and in note 8.5 to the financial statements.

The names of all persons who currently hold options granted under the Employee Share and Option Plan and conditional rights to ordinary 
shares of the Company are entered in the registers kept by the Company pursuant to section 168 of the Corporations Act 2001.

Environmental regulation
Disclosures on climate-related risks and opportunities are provided on pages 20 to 33 of this Annual Report and operational GHG 
emissions and other environmental data are disclosed in the 2023 Sustainability Data Book.

41

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42

Remuneration Report

To our shareholders,

On behalf of the Board, I am pleased to present QBE’s Remuneration Report 
for 2023.

As a Board, we are committed to overseeing the evolution of QBE’s people 
and culture strategic priorities to meet the changing needs of the business. 
As Chair of the People & Remuneration Committee, I am especially proud 
to acknowledge the continued hard work and dedication of our people 
in enabling a sustainable and resilient workforce. 

We have made substantial progress during 2023 and I think it is important 
to share a few examples of how this has come to life: the launch of our 
‘Why QBE’ campaign focused on career and development opportunities and 
building deeper succession pathways at QBE; the ongoing Safety to Speak 
Up initiative encourages our people to participate, experiment, challenge, and 
to call out risks, issues or concerns; leadership capability programs across 
our three enterprise leadership groups supported the embedment of the 
QBE DNA through role modelling in day-to-day activities. This is particularly 
important as having the right culture in place is crucial to our future success. 
In addition, the launch of QShare, our new opt-in employee share purchase 
plan, brings our enterprise together and helps a wider range of our employees 
to think and act as shareholders. During the year, QBE received external 
recognition through an array of people and culture awards, see page 43. 

Executive key management personnel

During 2023, we had some changes at the executive leadership level. 
The two internal appointments to our executive key management personnel 
(KMP) highlights the bench-strength of high calibre leaders already within 
QBE and reflects the enhanced focus we have made on internal talent and 
leadership over the last few years. Peter Burton was appointed as Group 
Chief Underwriting Officer on 4 September 2023; and Julie Wood, as Chief 
Executive Officer (CEO), North America, on 18 September 2023.

The global market for attracting and retaining talent remains highly competitive, 
and we continue to invest to ensure QBE stands out as an employer of choice. 
Having conducted a detailed benchmark comparison of local and global 
companies with a similar footprint, industry and complexity, and recognising the 
cumulative impacts of inflation, an adjustment of up to 5% was applied to the 
fixed remuneration of the executive KMP during 2023. The long-term incentive 
(LTI) maximum opportunities were also aligned for the three Divisional CEOs 
and Group Chief Financial Officer to drive long-term performance. 

Performance during 2023

QBE recorded a Group adjusted cash return on equity (ROE) for incentive 
purposes of 16.0%, a strong result above target, buoyed by more resilient 
underwriting performance and a favourable investment result. The strong 
investment returns were underpinned by higher interest rates, while risk asset 
returns were also sound, despite weaker returns in the unlisted property portfolio.

Our business has demonstrated continued resilience despite numerous 
catastrophes, with multiple storm, flood, wildfire and hurricane events across 
key regions during 2023, although underwriting profitability was challenged by 
the impact of largely catastrophe related prior year development. As a result, 
the Group combined operating ratio (COR) for incentive purposes was 95.2%, 
between threshold and target. 

We’ve continued to make strong progress on each of our six strategic priorities 
and uplifted our risk maturity across the Group. 

 For more information on the strategic priorities’ achievements and 
the financial performance in 2023, refer to pages 6 to 15.

Remuneration  
Report contents

Our remuneration  
at a glance 

44

Remuneration framework  44

Remuneration  
key features  

Five-year performance  

How we performed  
– executive KMP 
business scorecard 

 Executive KMP  
performance snapshots 

1. 

 Remuneration 
governance 

2. 

 Executive KMP  
remuneration  
in detail 

45

46

47

48

50

53

3. 

 Executive KMP 
remuneration tables  58

4. 

 Non-executive director 
remuneration 
62

 
42

43

Remuneration Report

To our shareholders,

On behalf of the Board, I am pleased to present QBE’s Remuneration Report 

for 2023.

As a Board, we are committed to overseeing the evolution of QBE’s people 

and culture strategic priorities to meet the changing needs of the business. 

As Chair of the People & Remuneration Committee, I am especially proud 

to acknowledge the continued hard work and dedication of our people 

in enabling a sustainable and resilient workforce. 

We have made substantial progress during 2023 and I think it is important 

to share a few examples of how this has come to life: the launch of our 

‘Why QBE’ campaign focused on career and development opportunities and 

building deeper succession pathways at QBE; the ongoing Safety to Speak 

Up initiative encourages our people to participate, experiment, challenge, and 

to call out risks, issues or concerns; leadership capability programs across 

our three enterprise leadership groups supported the embedment of the 

QBE DNA through role modelling in day-to-day activities. This is particularly 

important as having the right culture in place is crucial to our future success. 

In addition, the launch of QShare, our new opt-in employee share purchase 

plan, brings our enterprise together and helps a wider range of our employees 

to think and act as shareholders. During the year, QBE received external 

recognition through an array of people and culture awards, see page 43. 

Executive key management personnel

During 2023, we had some changes at the executive leadership level. 

The two internal appointments to our executive key management personnel 

(KMP) highlights the bench-strength of high calibre leaders already within 

QBE and reflects the enhanced focus we have made on internal talent and 

leadership over the last few years. Peter Burton was appointed as Group 

Chief Underwriting Officer on 4 September 2023; and Julie Wood, as Chief 

Executive Officer (CEO), North America, on 18 September 2023.

The global market for attracting and retaining talent remains highly competitive, 

and we continue to invest to ensure QBE stands out as an employer of choice. 

Having conducted a detailed benchmark comparison of local and global 

companies with a similar footprint, industry and complexity, and recognising the 

cumulative impacts of inflation, an adjustment of up to 5% was applied to the 

fixed remuneration of the executive KMP during 2023. The long-term incentive 

(LTI) maximum opportunities were also aligned for the three Divisional CEOs 

and Group Chief Financial Officer to drive long-term performance. 

Performance during 2023

QBE recorded a Group adjusted cash return on equity (ROE) for incentive 

purposes of 16.0%, a strong result above target, buoyed by more resilient 

underwriting performance and a favourable investment result. The strong 

investment returns were underpinned by higher interest rates, while risk asset 

returns were also sound, despite weaker returns in the unlisted property portfolio.

Our business has demonstrated continued resilience despite numerous 

catastrophes, with multiple storm, flood, wildfire and hurricane events across 

key regions during 2023, although underwriting profitability was challenged by 

the impact of largely catastrophe related prior year development. As a result, 

the Group combined operating ratio (COR) for incentive purposes was 95.2%, 

between threshold and target. 

We’ve continued to make strong progress on each of our six strategic priorities 

and uplifted our risk maturity across the Group. 

 For more information on the strategic priorities’ achievements and 

the financial performance in 2023, refer to pages 6 to 15.

Remuneration  

Report contents

Our remuneration  

at a glance 

Remuneration framework  44

Remuneration  

key features  

Five-year performance  

How we performed  

– executive KMP 

business scorecard 

 Executive KMP  

performance snapshots 

48

1. 

 Remuneration 

governance 

2. 

 Executive KMP  

remuneration  

in detail 

44

45

46

47

50

53

3. 

 Executive KMP 

remuneration tables  58

4. 

 Non-executive director 

remuneration 

62

The executive KMP business scorecard outcome is utilised as an input 
in determining executive KMP incentives. For the 2023 performance year, 
having considered the financial and non-financial measures, the executive 
KMP business scorecard was assessed as slightly below target, see page 47. 

The Board’s consideration of executive KMP performance against their 2023 
objectives resulted in their incentive outcomes for the period ranging between 
55.2% to 70.0% of their maximum opportunity, see pages 48 and 49. The 
Group CEO received 91.9% of the target opportunity (61.3% of the maximum 
opportunity), of which 50% is deferred as conditional rights and vests in equal 
tranches over the first, second, third and fourth anniversaries of the award.

 For more information on 2023 executive KMP remuneration, 
refer to pages 48 and 49. 

Non-executive directors

As part of our continuous Board renewal, the Board appointed Peter Wilson 
and Stephen Ferguson as new non-executive directors during 2023, with 
Penny James joining the Board in January 2024. Non-executive director fees 
were reviewed to ensure they remain competitive relative to international 
financial institution peers and commensurate with the directors’ experiences, 
accountabilities and workloads. Following this review, an increase of 3% will 
apply from 1 January 2024, the first such increase since 2015.   

 For more information on 2023 non-executive director remuneration, 
refer to pages 62 to 64.

Looking ahead

The new Australian Prudential Standard CPS 511 Remuneration (CPS 511) 
will apply across the remuneration programs in the new performance year; 
and includes the addition of non-financial measures in the LTI plan. As alluded 
to in last year’s Remuneration Report, I am pleased to confirm that we have 
included a new measure for the LTI awards in 2024 which supports our 
sustainability strategy and commitments. This will be in place alongside a new 
customer-aligned measure, see page 45. Further details will be shared in the 
2024 Remuneration Report.

For 2024, there will be continued focus on uplifting the capability of our employees 
and the implementation of multiple people and culture initiatives that will support 
how we build a resilient workforce for the future.  

Thank you for your support in 2023. As always, we welcome shareholder feedback.

Tan Le

Chair, People & Remuneration Committee

Recognition  
and awards

Gender 
Equality Index (GEI)

2023 Bloomberg GEI

Top 100 for Gender 
Equality

2023 Equileap Global 
Report & Ranking

Most Inclusive 
Workplace (Australia)

2023 Australian HR 
Institute (AHRI) 

Platinum 
Well Workplace 
Award (USA)

2023 Wellness Council 
of America

HR Asia Best 
Companies to 
Work for In Asia 
(Hong Kong)

2023 Business Media 
International 

Parental 
Policies Award (UK)

2023 Working Dads 
Employer Awards

This Remuneration Report sets out QBE’s remuneration framework and provides detail of remuneration outcomes for KMP for 2023 and how 
this aligns with QBE’s performance. Accounting standards define KMP as those executives and non-executive directors with the authority and 
responsibility for planning, directing and controlling the activities of the Group, either directly or indirectly. The 2023 Remuneration Report has 
been prepared and audited in accordance with the disclosure requirements of the Corporations Act 2001.

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44

Our remuneration at a glance

Remuneration framework

Our remuneration strategy is designed to attract, retain and motivate QBE’s executives 
by providing market competitive remuneration, aligned with the creation of sustained 
shareholder value and robust risk management practices.

Our purpose

QBE – enabling a more resilient future

Our remuneration principles 

The guiding principles which promote robust risk management practices are applied 
effectively to manage remuneration and reward across the Group.

Simple 
and clear 

Linked to 
strategy

Motivating

Aligned to 
shareholders

Globally consistent and 
locally competitive

The remuneration framework supports our strategy

Simple  
and clear

A simple and clear 
view of how delivery 
of our strategy impacts 
incentive outcomes for 
our executives.

Adaptable to changes 
in our strategy and 
external environment

Measures that 
are correlated  
with performance

Performance targets 
aimed at delivering our 
long-term objectives will 
evolve with our strategy, 
changes to business 
cycles and the external 
operating environment.

Measures that focus on 
profitability, management 
of the balance sheet 
and our longer-term 
strategic priorities enable 
remuneration outcomes 
to reflect a holistic view 
of performance.

Encourages our 
executives to think and 
act like business owners

A significant portion 
of incentives is paid 
in equity which focuses 
executives on creating 
shareholder value, 
managing risk and being 
accountable for the 
long-term success of QBE.

Aligning remuneration to culture and managing risk

The remuneration structure is designed to align remuneration with prudent risk-taking, underpinned by 
our QBE DNA which describes who we are, what we stand for and how we need to operate to be successful. 
The way that each executive complies with the requirements of our Group Code of Ethics and Conduct 
(the Code) and manages their risk is a key consideration of the Board in determining their incentive outcomes. 
Executive KMP performance assessments include a formal assessment of risk and behaviours using input 
from the Group Chief Risk Officer (CRO), the Chair of the People & Remuneration Committee, the Chair 
of the Board Risk & Capital Committee and chairs of divisional boards where relevant. 

In 2023, we continued to focus on measuring not only what was achieved but how it was achieved to 
further strengthen our culture.  The future inclusion of non-financial elements in our LTI plan, together with extended 
deferral for certain regulated roles, further promotes the effective management of financial and non-financial risks.

 
44

Our remuneration at a glance

Remuneration framework

Remuneration key features

Our remuneration strategy is designed to attract, retain and motivate QBE’s executives 

by providing market competitive remuneration, aligned with the creation of sustained 

A high level summary of the terms of the Group CEO’s remuneration arrangements 
in 2023 is presented below:

shareholder value and robust risk management practices.

Annual Performance Incentive (API)

Long-term Incentive (LTI)

Our purpose

QBE – enabling a more resilient future

Our remuneration principles 

The guiding principles which promote robust risk management practices are applied 

effectively to manage remuneration and reward across the Group.

Simple 

and clear 

Linked to 

strategy

Motivating

Aligned to 

shareholders

Globally consistent and 

locally competitive

The remuneration framework supports our strategy

Simple  

and clear

A simple and clear 

view of how delivery 

of our strategy impacts 

incentive outcomes for 

our executives.

Adaptable to changes 

in our strategy and 

external environment

Measures that 

are correlated  

with performance

Encourages our 

executives to think and 

act like business owners

Performance targets 

Measures that focus on 

A significant portion 

aimed at delivering our 

profitability, management 

of incentives is paid 

long-term objectives will 

evolve with our strategy, 

changes to business 

cycles and the external 

operating environment.

of the balance sheet 

and our longer-term 

in equity which focuses 

executives on creating 

strategic priorities enable 

shareholder value, 

remuneration outcomes 

managing risk and being 

to reflect a holistic view 

accountable for the 

of performance.

long-term success of QBE.

Aligning remuneration to culture and managing risk

The remuneration structure is designed to align remuneration with prudent risk-taking, underpinned by 

our QBE DNA which describes who we are, what we stand for and how we need to operate to be successful. 

The way that each executive complies with the requirements of our Group Code of Ethics and Conduct 

(the Code) and manages their risk is a key consideration of the Board in determining their incentive outcomes. 

Executive KMP performance assessments include a formal assessment of risk and behaviours using input 

from the Group Chief Risk Officer (CRO), the Chair of the People & Remuneration Committee, the Chair 

of the Board Risk & Capital Committee and chairs of divisional boards where relevant. 

In 2023, we continued to focus on measuring not only what was achieved but how it was achieved to 

further strengthen our culture.  The future inclusion of non-financial elements in our LTI plan, together with extended 

deferral for certain regulated roles, further promotes the effective management of financial and non-financial risks.

Delivered through
A mix of API cash (50%) and API deferred equity (50%)

Delivered through
Equity (100%)

Incentive opportunity 
150% (target), 225% (maximum)

Performance period 
One year

Incentive opportunity 
200% (maximum face-value)

Performance period 
Three years

Equity deferral period 
One to four years from end of performance period

Equity deferral period 
Three to five years from start of performance period

Performance measures 
Performance measured through a business scorecard 
containing Group cash ROE and Group COR financial 
measures alongside non-financial measures. These 
incorporate metrics based on risk, people and culture 
and strategic priorities. In addition, individual performance 
objectives focus both on what has been achieved and 
how they were achieved during the year. 

Performance measures 
Two measures: Average Group cash ROE (70%) 
and relative Total Shareholder Return (TSR) (30%) 
with a global insurance peer group.

Malus and clawback provisions and executive minimum shareholding requirements (MSR) continue to apply.

LTI changes for 2024

The 2024 LTI plan will incorporate two new strategic measures to support future 
performance, enabling resilience and value generation for our stakeholders.

We are including non-financial measures in the 2024 LTI as required by CPS 511. Sustainability and Customer, together with relative 
TSR and average Group cash ROE will drive towards a strategically aligned resilient future. A high level summary is provided below.

Sustainability

Customer

QBE recognises the importance for people, communities and 
businesses to build resilience in order to address the challenges 
we face now, and into the future. The new LTI performance 
measures, aligned to our sustainability strategy, will help drive 
forward our sustainability commitments. 

For the 2024 LTI award, the measures will track our performance 
against a range of targets aligned with our three sustainability 
focus areas. These provide significant opportunity to expand into 
further sustainability-focused initiatives in future years.

The inclusion of customer measures in the 2024 LTI encourages 
our senior leaders to continue to improve how we service our 
customers. Delivering an enhanced customer experience 
through modernising key business processes during the 
performance period will make it easier for customers to do 
business with us. 

Better customer experiences will be evidenced through 
improved external ratings from broker relationships 
and efficient and consistent improvements in business 
processes through modernisation. 

There are both quantitative and qualitative metrics aligned to the new non-financial measures. Following the three-year performance 
period, a pre-vest assessment by the Board will determine appropriate vesting outcomes. Where the LTI measures are deemed 
to be commercially sensitive, they will be disclosed at the end of the performance period (unless sensitivity remains).

45

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46

Five-year performance

The Group’s financial performance demonstrated greater consistency and resilience 
in a dynamic operating environment, though our underwriting performance 
highlights we still have further work ahead of us. 

Financial performance

Return to shareholders

COR

Return to shareholders

.

0
0
0
1

.

5
7
9

.

4
7
0
1

.

8
3
0
1

5
.
1
9

.

0
5
9

.

9
5
9

8
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1
9

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2
5
9

A
/
N

8
8
2
1

.

.

2
9
2

3
5
8

.

)

.

0
4
2
(

5
3
.
1
1

.

5
3
2

3
4
3
1

.

.

0
6
1

1
8
4
1

.

.

8
4
1

2019

2020

1

2021

2

2022

2023

Statutory COR (%)
Group COR for incentive purposes (%) 1

2019

2020

2021

2022

2023

Share price at 31 December (A$/share)
TSR (%)

Profit measures

Dividend per share

.

9
8

.

7
6

571

(1,517)

.

)
2
6
1
(

.

)
2
8
1
(

.

3
0
1

.

6
8

.

3
8

.

6
6

.

0
6
1

.

4
4
1

2
5

750

587

1,355

4

2
6

0
3

9
3

2019

2020

2021

2

2022

3

2023

2019

2020

2021

2022

2023

Dividend per share (Australian cents)

Net profit (loss) after tax (US$M)
Group cash ROE for incentive purposes (%)
Return on average shareholders’ equity (%)

Group CEO outcomes

Short term incentive achievements as % of target 4, 5
LTI vested (% of grant) 6 

2019

68.5
0

2020

90.4
–

2021

115.2
–

2022

98.1
–

2023

91.9
–

2020 LTI vesting outcomes

2020 LTI measures

Relative TSR ASX 50 peer group

Achieved at 60th percentile

Relative TSR global insurance peer group
Average Group cash ROE

Below the 50th percentile
Below the threshold of 8%

  17.3%

  69.1%

100%

25%

25%
50%

0%
0%

ACHIEVEMENTS

WEIGHTING

% OUTCOME ACHIEVED

Tracking of unvested LTI awards

2021 LTI award – vesting Q1 2024/25/26 – Average Group cash ROE and relative TSR performance – Partial vesting 7
2022 LTI award – vesting Q1 2025/26/27 – Average Group cash ROE and relative TSR performance – On track
2023 LTI award – vesting Q1 2026/27/28 – Average Group cash ROE and relative TSR performance – On track

1  For incentive purposes, the 2021 Group COR was replaced by a blended Group COR. For details please see the 2021 Remuneration Report.
2  The 2022 results have been restated to reflect the application of AASB 17 Insurance Contracts. Remuneration outcomes were not revised.
3  Group adjusted cash ROE for incentive purposes of 16.0% is as provided on page 13. 
4  Full details for 2023 are provided on page 48. 
5  Legacy plans are detailed on page 57 and comprise Short Term Incentive (STI) from 2019 to 2021. The API was introduced in 2022.
6  The ‘–’ indicates no LTI award was eligible for vesting in the relevant year, where ‘0’ indicates zero LTI vested. The current Group CEO 

was not in role and therefore was not eligible to receive the 2020 LTI; for details of the 2020 LTI please see the 2020 Remuneration Report.
7  For details on the 2021 LTI Group cash ROE targets, see page 56. Further details on vesting will be disclosed in the 2024 Remuneration Report.

 
 
46

47

Five-year performance

How we performed – executive KMP business scorecard

The Group’s financial performance demonstrated greater consistency and resilience 

in a dynamic operating environment, though our underwriting performance 

Our focus on both financial and non-financial measures during the 2023 performance year 
resulted in the outcome for the executive KMP business scorecard as summarised below. 

highlights we still have further work ahead of us. 

Financial performance

Return to shareholders

Financial 

WEIGHTING: 70%

COR

Return to shareholders

Group COR 

THRESHOLD 
30%

TARGET
100%

SUPERIOR 
150%

OUTCOME:

The Group COR for incentive purposes was 95.2%, a result between threshold and target. From a divisional performance 
perspective, North America made progress in rebalancing its portfolio, noting underwriting profitability was challenged 
by short-tail reserve strengthening. Non-core lines, made up of recently terminated or legacy business, weighed heavily 
on underwriting performance accounting for a significant amount of divisional catastrophe costs and reserve strengthening. 
The International result included strong premium growth and excellent underwriting profitability. Australia Pacific achieved 
strong premium growth, and delivered resilient underwriting returns in light of ongoing catastrophe activity and persistent 
inflation. For detailed commentary of Group and divisional financial performance, please refer to pages 8 to 15.

Group cash  ROE 

THRESHOLD 
30%

TARGET
100%

SUPERIOR 
150%

OUTCOME:

QBE recorded a Group adjusted cash ROE for incentive purposes of 16.0%, which was above target buoyed by a resilient 
underwriting performance and a strong investment result. Favourable investment performance was supported by higher 
interest rates. While risk asset returns were sound overall, there were weaker returns in the unlisted property portfolio. 
Our business has demonstrated continued resilience despite a dynamic operating environment, which included heightened 
catastrophe activity and increased inflation impacting all regions.

Non-financial 

WEIGHTING: 30%

2019

2020

2021

2

2022

3

2023

2019

2020

2021

2022

2023

Dividend per share (Australian cents)

Risk 

THRESHOLD 
30%

TARGET
100%

SUPERIOR 
150%

OUTCOME:

The annual Risk Maturity Self-Assessment completed for 2023 received an outcome of ‘embedded’ and reflects improvements 
across all elements of our Enterprise Risk Management Framework. Risk Skills and Culture was the highest scoring element 
driven by improvements in psychological safety and speaking up and tone from the top, both essential to influencing effective 
risk management across the Group. Uplift was also seen in risk-based decision making and how risk is governed, evidencing 
a greater ownership of risk within the business.

THRESHOLD 
30%

TARGET
100%

SUPERIOR 
150%

People and culture 

OUTCOME:

Positive progress against the people and culture initiatives was achieved in 2023 with the launch of our Employee Promise 
‘Why QBE’ campaign which reinforced career development opportunities and succession pathways through our three 
enterprise talent groups. Further improvements were made on employee engagement levels and we achieved our Women 
in Leadership targets, supported by strengthened inclusion of diversity (IoD) activity across the enterprise. This included 
introducing global inclusive recruitment principles and IoD Policy enhancements. Innovative new global targets focused 
on equal sense of belonging across the dimensions of gender, race/ethnicity, disability status and LGBTIQ+ identification 
were also introduced, along with the launch of our new employee share purchase plan, QShare. 

Strategic priorities 

OUTCOME:

The delivery of our strategic priorities progressed well in 2023. There was a notable reduction in volatility achieved through 
portfolio optimisation initiatives, including portfolio exits and the reserve transaction. We progressed cyber and delivered 
sustainable growth across a number of areas, including reinsurance, global specialty and QBE’s UK business. Bring the 
enterprise together was a key enabler supporting initiatives to improve performance. Our efforts to modernise our business 
focused on progressing our enterprise data strategy and our approach to piloting and scaling AI.

THRESHOLD 
30%

TARGET
100%

SUPERIOR 
150%

API business scorecard weighted outcome: Slightly below target

The Board considered quantitative and qualitative 
factors in determining the final outcome of the 
executive KMP business scorecard.

0

.

0

0

1

5

.

7

9

4

.

7

0

1

8

.

3

0

1

5

.

1

9

0

.

5

9

9

.

5

9

8

.

1

9

2

.

5

9

A

/

N

2019

2020

Statutory COR (%)

Group COR for incentive purposes (%) 1

1

2021

2

2022

2023

2019

2020

2021

2022

2023

Share price at 31 December (A$/share)

TSR (%)

Profit measures

Dividend per share

8

8

.

2

1

2

.

9

2

2

5

3

5

.

8

)

0

.

4

2

(

4

1

8

.

4

1

8

.

4

1

2

6

5

3

.

1

1

5

.

3

2

3

4

.

3

1

0

.

6

1

0

3

9

3

9

.

8

7

.

6

571

(1,517)

)

2

.

6

1

(

)

2

.

8

1

(

3

.

0

1

6

.

8

3

.

8

6

.

6

0

.

6

1

4

.

4

1

750

587

1,355

Net profit (loss) after tax (US$M)

Group cash ROE for incentive purposes (%)

Return on average shareholders’ equity (%)

Group CEO outcomes

Short term incentive achievements as % of target 4, 5

LTI vested (% of grant) 6 

2019

68.5

0

2020

90.4

–

2021

115.2

–

2022

98.1

–

2023

91.9

–

2020 LTI vesting outcomes

2020 LTI measures

Relative TSR ASX 50 peer group

Achieved at 60th percentile

Relative TSR global insurance peer group

Below the 50th percentile

Average Group cash ROE

Below the threshold of 8%

  17.3%

  69.1%

100%

25%

25%

50%

0%

0%

ACHIEVEMENTS

WEIGHTING

% OUTCOME ACHIEVED

Tracking of unvested LTI awards

2021 LTI award – vesting Q1 2024/25/26 – Average Group cash ROE and relative TSR performance – Partial vesting 7

2022 LTI award – vesting Q1 2025/26/27 – Average Group cash ROE and relative TSR performance – On track

2023 LTI award – vesting Q1 2026/27/28 – Average Group cash ROE and relative TSR performance – On track

1  For incentive purposes, the 2021 Group COR was replaced by a blended Group COR. For details please see the 2021 Remuneration Report.

2  The 2022 results have been restated to reflect the application of AASB 17 Insurance Contracts. Remuneration outcomes were not revised.

3  Group adjusted cash ROE for incentive purposes of 16.0% is as provided on page 13. 

4  Full details for 2023 are provided on page 48. 

5  Legacy plans are detailed on page 57 and comprise Short Term Incentive (STI) from 2019 to 2021. The API was introduced in 2022.

6  The ‘–’ indicates no LTI award was eligible for vesting in the relevant year, where ‘0’ indicates zero LTI vested. The current Group CEO 

was not in role and therefore was not eligible to receive the 2020 LTI; for details of the 2020 LTI please see the 2020 Remuneration Report.

7  For details on the 2021 LTI Group cash ROE targets, see page 56. Further details on vesting will be disclosed in the 2024 Remuneration Report.

A
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48

Executive KMP performance snapshots

The realised remuneration outlined below provides an overview of actual 
remuneration outcomes for executive KMP. 

QBE discloses actual remuneration outcomes in the financial period under review for executive KMP in role at 31 December 2023. 
The realised 2023 remuneration figures below include the accrued API cash award for the 2023 financial year, the value of any 
conditional rights granted in prior years that vested during 2023 and executive shareholdings against the MSR. 

Andrew Horton 
Group CEO

Term as KMP in 2023
Full year

Country of residence
Australia

Total value of shareholdings  
against the MSR  
(times fixed remuneration)  3.2x.x4.8

Andrew Horton

2023 API outcome  (US$000)

$855
Cash

$855
Deferred

91.9% of target

61.3% of maximum

2023 realised remuneration 1  (US$000)

$3,325 Total

$1,239

$855

$1,094

$137

Peter Burton 
Group Chief Underwriting Officer

Term as KMP in 2023 
Commenced 4 September 2023

Country of residence 
United Kingdom

Total value of shareholdings  
against the MSR  
(times fixed remuneration) 

0.8

Jason Harris 
Chief Executive Officer,  International

Term as KMP in 2023 
Full year

Country of residence 
United Kingdom

Total value of shareholdings  
against the MSR  
(times fixed remuneration) 

1.7

Sue Houghton 
Chief Executive Officer, Australia Pacific

Term as KMP in 2023 
Full year

Country of residence 
Australia

Total value of shareholdings  
against the MSR  
(times fixed remuneration) 

2.3

2023 API outcome  (US$000)

$145
Cash

$97
Deferred

83.1% of target

55.4% of maximum

2023 realised remuneration 1  (US$000)

$414 Total

$246

$145

$23

2023 API outcome  (US$000)

$634
Cash

$423
Deferred

105.0% of target

70.0% of maximum

2023 realised remuneration 1  (US$000)

$1,972 Total

$839

$634

$487

$12

2023 API outcome  (US$000)

$418
Cash

$279
Deferred

84.3% of target

56.2% of maximum

2023 realised remuneration 1  (US$000)

$1,578 Total

$688

$418

$466

$6

1  The value of vested conditional rights awards has been calculated using the share price on the vesting date. These figures are different from those 
shown in the statutory table on page 58. For example, the statutory table includes an apportioned accounting value for all unvested conditional 
rights held during the year, which remain subject to performance and service conditions and consequently may or may not ultimately vest.

Key: 

  Fixed remuneration 

  API cash 

  API deferred equity 

  Value of vested rights 

  Other

 
 
 
 
 
 
 
 
 
48

49

Executive KMP performance snapshots

The realised remuneration outlined below provides an overview of actual 

remuneration outcomes for executive KMP. 

QBE discloses actual remuneration outcomes in the financial period under review for executive KMP in role at 31 December 2023. 

The realised 2023 remuneration figures below include the accrued API cash award for the 2023 financial year, the value of any 

conditional rights granted in prior years that vested during 2023 and executive shareholdings against the MSR. 

Andrew Horton 

Group CEO

Term as KMP in 2023

Full year

Country of residence

Australia

Total value of shareholdings  

against the MSR  

(times fixed remuneration)  3.2x.x4.8

Andrew Horton

2023 API outcome  (US$000)

$855

Cash

$855

Deferred

91.9% of target

61.3% of maximum

2023 realised remuneration 1  (US$000)

$3,325 Total

Amanda Hughes 
Group Chief People Officer 

Term as KMP in 2023 
Full year

Country of residence 
Australia

Total value of shareholdings  
against the MSR  
(times fixed remuneration) 

1.3

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2023 API outcome  (US$000)

$323
Cash

$215
Deferred

97.6% of target

65.0% of maximum

2023 realised remuneration 1  (US$000)

$971 Total

1

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$1,239

$855

$1,094

$137

$550

$323

$94

$4

Peter Burton 

Group Chief Underwriting Officer

Fiona Larnach 
Group Chief Risk Officer

Term as KMP in 2023 

Commenced 4 September 2023

Country of residence 

United Kingdom

Total value of shareholdings  

against the MSR  

(times fixed remuneration) 

0.8

2023 API outcome  (US$000)

$145

Cash

$97

Deferred

83.1% of target

55.4% of maximum

2023 realised remuneration 1  (US$000)

$414 Total

Term as KMP in 2023 
Full year

Country of residence 
Australia

Total value of shareholdings  
against the MSR  
(times fixed remuneration) 

0.6

2023 API outcome  (US$000)

$231
Cash

$154
Deferred

82.8% of target

55.2% of maximum

2023 realised remuneration 1  (US$000)

$956 Total

3

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$246

$145

$23

$619

$231

$86 $20

Jason Harris 

Chief Executive Officer,  International

Term as KMP in 2023 

Full year

Country of residence 

United Kingdom

Total value of shareholdings  

against the MSR  

(times fixed remuneration) 

1.7

2023 API outcome  (US$000)

$634

Cash

$423

Deferred

105.0% of target

70.0% of maximum

2023 realised remuneration 1  (US$000)

$1,972 Total

Inder Singh 
Group Chief Financial Officer

Term as KMP in 2023 
Full year

Country of residence 
Australia

Total value of shareholdings  
against the MSR  
(times fixed remuneration) 

1.9

2023 API outcome  (US$000)

$617
Cash

$412
Deferred

95.8% of target

63.8% of maximum

2023 realised remuneration 1  (US$000)

$2,368 Total

$839

$634

$487

$12

$894

$617

$851

$6

Sue Houghton 

Chief Executive Officer, Australia Pacific

Term as KMP in 2023 

Full year

Country of residence 

Australia

Total value of shareholdings  

against the MSR  

(times fixed remuneration) 

2.3

2023 API outcome  (US$000)

$418

Cash

$279

Deferred

84.3% of target

56.2% of maximum

2023 realised remuneration 1  (US$000)

$1,578 Total

Julie Wood 
Chief Executive Officer, North America

Term as KMP in 2023 
Commenced 18 September 2023

Country of residence 
United States

Total value of shareholdings  
against the MSR  
(times fixed remuneration) 

0.7

2023 API outcome  (US$000)

$157
Cash

$104
Deferred

84.0% of target

56.0% of maximum

2023 realised remuneration 1  (US$000)

$412 Total

$688

$418

$466

$6

$250

$157

$5

1  The value of vested conditional rights awards has been calculated using the share price on the vesting date. These figures are different from those 

shown in the statutory table on page 58. For example, the statutory table includes an apportioned accounting value for all unvested conditional 

rights held during the year, which remain subject to performance and service conditions and consequently may or may not ultimately vest.

Key: 

  Fixed remuneration 

  API cash 

  API deferred equity 

  Value of vested rights 

  Other

Key: 

  Fixed remuneration 

  API cash 

  API deferred equity 

  Value of vested rights 

  Other

4

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50

Remuneration Report  continued

1. 

REMUNERATION GOVERNANCE

QBE has a robust remuneration governance framework overseen by the Board. This ensures that the remuneration arrangements 
are appropriately designed and managed and that the agreed frameworks and policies are applied and monitored across QBE.

Has overall responsibility for the remuneration strategy and outcomes for executives and non-executive directors.

Board

People & Remuneration Committee 

Is the main governing body for key people and remuneration items across the Group. 

 Further details on the role and scope of the People & Remuneration Committee are set out in the QBE People 
& Remuneration Committee charter, available from www.qbe.com/investor-relations/corporate-governance/
qbe-charters-and-constitution.

Group CEO 

Divisional People & 
Remuneration  
Committees

External 
advisers

Managing risk

The continued focus on and investment in managing our risk provides for a stronger and more resilient QBE. Executive KMP are 
required to adhere to a range of Group-wide policies to ensure risks are well managed, strong governance structures are in place 
and high ethical standards are maintained. The remuneration governance framework incorporates risk oversight principles so that 
executives cannot unduly influence a decision that could materially impact their own incentive outcome. The Board approves 
a comprehensive delegated authority for the Group CEO, which is an integral part of QBE’s risk management process. 

The People & Remuneration Committee works closely with the Board Risk & Capital Committee, with members of both committees  
attending a joint meeting at least once a year. Further, members of the Board attend the meetings of the People & Remuneration 
Committee during the year which contributes to strengthened remuneration governance across QBE. The Group CRO attends and 
provides input to the joint committee meetings with resultant risk outcomes appropriately reflected in remuneration decisions and 
aligned with the Group’s risk management framework.

The performance-based components of remuneration established in QBE’s incentive plans are designed to encourage behaviour 
that supports the Group’s long-term financial soundness. Specifically, the QBE incentive plans:

• deliver a target remuneration mix balanced between fixed/variable remuneration, short- and long-term and cash and equity;

• incorporate individual performance objectives through the API that measure demonstrable proactive sound risk management, 
including an assessment of risk maturity and the setting of a clear and consistent tone about the importance of managing risk; 

• incorporate robust corporate standards for all employees supporting the QBE risk culture;

• balance performance outcomes based on delivery against a range of financial and non-financial measures which are set in the 

context of business plans that have been appropriately stress-tested by the Group CRO;

• enable the build-up of meaningful shareholding with API deferred equity and LTI underpinned by the MSR (refer to page 52);

• provide the Board with discretion to take other factors into account when determining the appropriate incentive outcome; and

• allow for multiple risk adjustments: in-year, malus for unvested awards and clawback of cash and vested equity (refer to page 51).

As part of the 2023 year-end process, an assessment of each senior executive’s approach to risk management has been completed 
using input from the Group CRO. This process recognises positive and negative risk culture and risk management through upward 
or downward adjustment of performance ratings, incentive payouts and consequences (that can include executives leaving 
the organisation). Across the Group in 2023, over 100 assessments were carried out including for executive KMP and divisional 
executive teams. Reviews against the malus and clawback provisions were also completed as part of the year-end process. While 
there was no application of malus or clawback in 2023, there were upward and downward performance ratings and/or incentive 
adjustments applied across the workforce.

 
 
1. 

REMUNERATION GOVERNANCE

QBE has a robust remuneration governance framework overseen by the Board. This ensures that the remuneration arrangements 

are appropriately designed and managed and that the agreed frameworks and policies are applied and monitored across QBE.

Has overall responsibility for the remuneration strategy and outcomes for executives and non-executive directors.

Board

Group Code of Ethics and Conduct

The Code provides clear guidance to employees, contractors, directors and others representing QBE on how we should conduct 
ourselves, reinforcing our culture and highlighting the responsibilities we have to the organisation, each other, and to our customers, 
partners, communities and governments. Through following the Code and our QBE DNA behaviours, we demonstrate the expected 
standards of professionalism and ethical behaviour in our actions and interactions. 

 A copy of QBE’s Group Code of Ethics and Conduct is available from www.qbe.com/investor-relations/corporate-
governance/global-policies.

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Consequence management

The QBE Consequence Management Policy was implemented in 2023. The policy introduces principles and guidance to ensure 
consequences for misconduct or poor risk outcomes are fair, consistent and aligned with local legislative, regulatory and 
Code requirements. 

Malus and clawback provisions reflect QBE’s regulatory obligations to incorporate terms allowing for the adjustment of incentive 
awards to protect QBE’s financial soundness and ability to respond to unforeseen significant issues.

Malus provision
The malus provision gives the People & Remuneration Committee and the Board discretion to reduce the amount of an unvested 
award (including to zero) in certain circumstances during the retention period, including in the case of:

• misconduct leading to significant adverse outcomes;

• a significant failure of financial or non-financial risk management;

• a significant failure or breach of accountability, fitness and propriety, or compliance obligations;

• a significant error or a significant misstatement of criteria on which the variable remuneration determination was based; and/or

• significant adverse outcomes for customers, beneficiaries or counterparties. 

Clawback provision
The clawback provision allows, to the extent permissible by applicable law, all variable remuneration (cash and deferred 
remuneration) to remain subject to clawback for a period of two years from the date of payment or vesting (as the case may be) 
of the relevant component of variable remuneration. 

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The Board can determine whether to apply clawback to paid or vested variable remuneration and, if so, the appropriate value over 
which clawback will be applied. 

’

The circumstances in which the Board may apply clawback include those where it concludes in good faith that there is or has been:

50

Remuneration Report  continued

People & Remuneration Committee 

Is the main governing body for key people and remuneration items across the Group. 

 Further details on the role and scope of the People & Remuneration Committee are set out in the QBE People 

& Remuneration Committee charter, available from www.qbe.com/investor-relations/corporate-governance/

qbe-charters-and-constitution.

Group CEO 

Divisional People & 

Remuneration  

Committees

External 

advisers

Managing risk

The continued focus on and investment in managing our risk provides for a stronger and more resilient QBE. Executive KMP are 

required to adhere to a range of Group-wide policies to ensure risks are well managed, strong governance structures are in place 

and high ethical standards are maintained. The remuneration governance framework incorporates risk oversight principles so that 

executives cannot unduly influence a decision that could materially impact their own incentive outcome. The Board approves 

a comprehensive delegated authority for the Group CEO, which is an integral part of QBE’s risk management process. 

The People & Remuneration Committee works closely with the Board Risk & Capital Committee, with members of both committees  

attending a joint meeting at least once a year. Further, members of the Board attend the meetings of the People & Remuneration 

Committee during the year which contributes to strengthened remuneration governance across QBE. The Group CRO attends and 

provides input to the joint committee meetings with resultant risk outcomes appropriately reflected in remuneration decisions and 

aligned with the Group’s risk management framework.

The performance-based components of remuneration established in QBE’s incentive plans are designed to encourage behaviour 

that supports the Group’s long-term financial soundness. Specifically, the QBE incentive plans:

• deliver a target remuneration mix balanced between fixed/variable remuneration, short- and long-term and cash and equity;

• incorporate individual performance objectives through the API that measure demonstrable proactive sound risk management, 

including an assessment of risk maturity and the setting of a clear and consistent tone about the importance of managing risk; 

• incorporate robust corporate standards for all employees supporting the QBE risk culture;

• balance performance outcomes based on delivery against a range of financial and non-financial measures which are set in the 

context of business plans that have been appropriately stress-tested by the Group CRO;

• enable the build-up of meaningful shareholding with API deferred equity and LTI underpinned by the MSR (refer to page 52);

• provide the Board with discretion to take other factors into account when determining the appropriate incentive outcome; and

• allow for multiple risk adjustments: in-year, malus for unvested awards and clawback of cash and vested equity (refer to page 51).

As part of the 2023 year-end process, an assessment of each senior executive’s approach to risk management has been completed 

using input from the Group CRO. This process recognises positive and negative risk culture and risk management through upward 

or downward adjustment of performance ratings, incentive payouts and consequences (that can include executives leaving 

the organisation). Across the Group in 2023, over 100 assessments were carried out including for executive KMP and divisional 

executive teams. Reviews against the malus and clawback provisions were also completed as part of the year-end process. While 

there was no application of malus or clawback in 2023, there were upward and downward performance ratings and/or incentive 

adjustments applied across the workforce.

• misconduct leading to material adverse outcomes;

• a material failure of financial or non-financial risk management;

• a material failure or breach of accountability, fitness and propriety, or compliance obligations;

• a material error or a material misstatement of criteria on which the variable remuneration determination was based; and/or

• material adverse outcomes for customers, beneficiaries or counterparties.

Clawback may be applied to any variable remuneration regardless of whether or not the employment or engagement of the relevant 
person is ongoing.

Adjustments to incentive plans

The API and LTI rules provide suitable discretion for the People & Remuneration Committee to adjust any formulaic outcomes 
to ensure awards under these plans appropriately reflect performance. 

The People & Remuneration Committee may defer the vesting of any award after the end of any performance period to one or more 
participants in circumstances where there is a dispute of any nature between a participant and QBE, or in cases where a participant’s 
actions or inactions may be relevant to an ongoing internal or external investigation. 

Further, the People & Remuneration Committee may reduce any unvested award to zero, if considered appropriate, in the instances 
of misconduct, misstatement or to protect the financial soundness of QBE.

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Remuneration Report  continued

1. 

REMUNERATION GOVERNANCE

Securities Trading Policy

Trading in QBE ordinary shares is generally permitted outside of designated closed periods. QBE’s Securities Trading Policy states 
that non-executive directors and other designated employees must notify any intended share transaction to nominated people within 
the Group. The policy prohibits the hedging of QBE securities at all times. The purpose of this prohibition is to ensure that there 
is an alignment between the interests of non-executive directors, executives and shareholders.

 A copy of QBE’s Securities Trading Policy for dealing in securities is available from www.qbe.com/investor-relations/
corporate-governance/global-policies.

Minimum shareholding requirement 

The MSR ensures executives build their shareholding to have significant exposure to QBE’s share price. Under the MSR, a minimum 
of three times fixed remuneration for the Group CEO (one-and-a-half times for other executive KMP) is to be maintained as long as the 
executive KMP remains at QBE. New executive KMP are required to build their shareholdings over a five-year period after becoming 
executive KMP.

The value of shareholdings as a multiple of fixed remuneration as at 31 December 2023 for each executive KMP is shown on pages 48 
and 49. All executive KMP have either met the MSR requirements as at 31 December 2023, or are within the five-year period to achieve 
the MSR. 

Use of external advisers

Remuneration advisers provide guidance on remuneration for executives, facilitate discussion, and review remuneration and 
at-risk reward benchmarking within industry peer groups. They also provide guidance on current trends in executive remuneration 
practices. Any advice provided by remuneration advisers is used as a guide and is not a substitute for consideration of all the issues 
by each non-executive director on the People & Remuneration Committee.

Ernst & Young (EY) currently acts as the independent remuneration adviser to the People & Remuneration Committee. The People 
& Remuneration Committee and the Board are satisfied that the advice provided by EY during 2023 was free from undue influence. 

During 2023, management requested and utilised reports on market practice from various reputable sources. No recommendations 
in relation to the remuneration of KMP were provided as part of these engagements. 

Treatment of conditional rights on a change in control of QBE

In accordance with the rules of each of QBE’s incentive plans, a change in control is defined as either a scheme of arrangement that 
has been approved by QBE’s shareholders and become effective or a bidder has at least 50% of the issued and to be issued QBE 
shares under an unconditional takeover offer made in accordance with the Corporations Act 2001. 

Should a change in organisational control occur, the People & Remuneration Committee has discretion to determine how unvested 
conditional rights should be treated, having regard to factors such as the length of time elapsed in the performance period, the level 
of performance to date and the circumstances of the change of control.

 
1. 

REMUNERATION GOVERNANCE

2. 

EXECUTIVE KMP REMUNERATION IN DETAIL

To deliver our strategic ambitions, we must ensure that our executive remuneration framework reflects QBE’s desire to attract and 
retain the best people. Having the right talent across the Group enables us to create shareholder value, while prudently managing 
risk and maintaining strong corporate governance.

The graph below sets out the typical remuneration structure and delivery for the Group CEO and other executive KMP for on-target 
performance at 31 December 2023. 

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17%
17%

22%

LTI maximum face-value
(Other executive KMP 39%)

API deferred equity
(Other executive KMP 13%)
API cash
(Other executive KMP 19%)

Fixed remuneration
(Other executive KMP 29%)

At-risk remuneration

Pay mix

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Remuneration Report  continued

Securities Trading Policy

Trading in QBE ordinary shares is generally permitted outside of designated closed periods. QBE’s Securities Trading Policy states 

that non-executive directors and other designated employees must notify any intended share transaction to nominated people within 

the Group. The policy prohibits the hedging of QBE securities at all times. The purpose of this prohibition is to ensure that there 

is an alignment between the interests of non-executive directors, executives and shareholders.

 A copy of QBE’s Securities Trading Policy for dealing in securities is available from www.qbe.com/investor-relations/

corporate-governance/global-policies.

Minimum shareholding requirement 

The MSR ensures executives build their shareholding to have significant exposure to QBE’s share price. Under the MSR, a minimum 

of three times fixed remuneration for the Group CEO (one-and-a-half times for other executive KMP) is to be maintained as long as the 

executive KMP remains at QBE. New executive KMP are required to build their shareholdings over a five-year period after becoming 

The value of shareholdings as a multiple of fixed remuneration as at 31 December 2023 for each executive KMP is shown on pages 48 

and 49. All executive KMP have either met the MSR requirements as at 31 December 2023, or are within the five-year period to achieve 

executive KMP.

the MSR. 

Use of external advisers

Remuneration advisers provide guidance on remuneration for executives, facilitate discussion, and review remuneration and 

at-risk reward benchmarking within industry peer groups. They also provide guidance on current trends in executive remuneration 

practices. Any advice provided by remuneration advisers is used as a guide and is not a substitute for consideration of all the issues 

by each non-executive director on the People & Remuneration Committee.

Ernst & Young (EY) currently acts as the independent remuneration adviser to the People & Remuneration Committee. The People 

& Remuneration Committee and the Board are satisfied that the advice provided by EY during 2023 was free from undue influence. 

During 2023, management requested and utilised reports on market practice from various reputable sources. No recommendations 

in relation to the remuneration of KMP were provided as part of these engagements. 

Treatment of conditional rights on a change in control of QBE

In accordance with the rules of each of QBE’s incentive plans, a change in control is defined as either a scheme of arrangement that 

has been approved by QBE’s shareholders and become effective or a bidder has at least 50% of the issued and to be issued QBE 

shares under an unconditional takeover offer made in accordance with the Corporations Act 2001. 

Should a change in organisational control occur, the People & Remuneration Committee has discretion to determine how unvested 

conditional rights should be treated, having regard to factors such as the length of time elapsed in the performance period, the level 

of performance to date and the circumstances of the change of control.

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The average pay mix for other executive KMP is fixed remuneration 29%; API cash 19%; API deferred equity 13%; and LTI maximum 
face-value 39%. Their individual pay mix reflects the relative accountabilities, responsibilities and regulatory requirements of their role.

Executive KMP remuneration structure

QBE’s executive KMP remuneration structure for 2023 comprised a mix of fixed and at-risk remuneration through API and LTI plan 
arrangements. Each of these components is discussed in further detail on the following pages.

FIXED REMUNERATION – KEY DETAILS

Description
Fixed remuneration comprises cash salary, superannuation/pension and packaged benefits, additional annual benefits 
and associated taxes. Additional annual benefits may include health insurance, life assurance, personal accident insurance, 
expatriate benefits, occasional partner travel to accompany the executive on business and applicable taxes. 

Fixed remuneration is delivered in accordance with terms and conditions of employment.

Determining fixed remuneration levels
Fixed remuneration considers the diversity, complexity and expertise required of individual roles. Remuneration quantum 
is set in the context of QBE’s broader reward strategy and internal relativities.

To assess the competitiveness of fixed remuneration, the People & Remuneration Committee considers market data and 
recognised published surveys. 

Australian-based executive roles are generally benchmarked to the Australian Securities Exchange (ASX) 30 and ASX 10-50 
peer groups of companies, with a specific focus on global companies and companies in the financial services industry. Overseas-
based executives or roles that have a global reach are compared with a peer group consisting of global insurers. The peer group 
of companies used for remuneration benchmarking purposes is set out in the table below:

PEER GROUP

DESCRIPTION

ASX peer group

The financial services sub-peer group is determined based on the industry classification on the 
ASX and includes commercial banks and insurers.

Global insurance 
peer group

Consists of large, global insurance companies aligned with the peer group used for the LTI plan. 

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54

Remuneration Report  continued

2. 

EXECUTIVE KMP REMUNERATION IN DETAIL

ANNUAL PERFORMANCE INCENTIVE PLAN – KEY DETAILS

Description
The API is an annual, performance-based incentive, measured over a 12-month period. This plan provides an incentive 
outcome with a clear link between business performance, risk management and individual performance and behaviours, 
and allows further discretion by the Board to be applied where warranted. The API award is delivered as 60% cash and 40% 
deferred as conditional rights to QBE shares (50%:50% in the case of the Group CEO). The conditional rights vest in equal 
tranches over a further four years, on the first, second, third and fourth anniversaries of the award. Vesting is subject to service 
conditions during the deferral period. 

API outcomes may be adjusted by other items (such as material acquisitions or divestments) not included in the business plan 
and as deemed appropriate by the People & Remuneration Committee.

Performance measures and rationale
The performance measures and a summary of achievements and position against targets is set out in the executive KMP 
business scorecard on page 47. Performance above threshold leads to outcomes ranging from 30% up to 150% of target. 
The measures and their rationale for use is provided below:

Financial 

MEASURE/
WEIGHTING % DEFINITION

COR

45.5

Comprises net claims expense, net commission and expenses and 
other income as a percentage of net insurance revenue. The measure 
excludes the impact of risk-free rates because it is consistent with 
the way we report and the basis on which the market assesses the 
underwriting performance of QBE.

Group cash 
ROE

24.5

For the API, this will generally be measured on the same basis used 
to determine shareholder dividends, with the detailed calculation set 
out on page 13. As a principle, losses due to unbudgeted amortisation/
impairment of intangibles will, other than in exceptional circumstances, 
be included in Group cash ROE so that executives remain accountable 
for the management of intangible assets. 

Non-financial

Risk

10.0

Risk outcomes are assessed using the Risk Maturity Self-Assessment, 
a framework QBE uses to understand how our risk management 
practices are maturing, how we determine areas of strength and 
identify areas that may require further investment. 

Investment in our people and the strengthening of alignment and 
collaboration across the enterprise are priorities that enable culture 
in order to drive performance. A blend of quantitative measures and 
qualitative outputs provides a comprehensive view of the effectiveness 
of our people and culture initiatives across the enterprise.

RATIONALE

COR is a key measure reflecting 
the underwriting performance of 
our insurance operations, assisting 
to identify areas of underwriting 
profitability leading to improved 
performance.

Group cash ROE is a measure 
of how effectively we are managing 
shareholders’ investment in QBE.

This multi-dimensional measure 
supports how we assess our 
effectiveness in managing risk, 
both from a qualitative and 
quantitative perspective.

Enabling a more sustainable and 
resilient workforce will assist us to 
deliver a more resilient future for our 
customers, communities and people.

Our focus in 2023 has been to continue the momentum of our strategic 
priorities: portfolio optimisation, sustainable growth, bring the enterprise 
together and modernise our business. 

How we are actively managing the 
business to deliver achievements 
in each of our strategic priority areas 
is key to delivering our vision.

People and 
culture

10.0

Strategic 
priorities

10.0

Individual performance objectives

Aligned with strategic priorities, the individual performance of the executive KMP is assessed both on what was achieved and 
how it was achieved at the end of the year. This embeds the QBE DNA behaviours in remuneration outcomes.

API conditional rights allocation
To calculate the number of conditional rights to be granted, the award value to be deferred is divided by the volume weighted 
average price of QBE shares over the five trading days prior to the grant date. Notional dividends accrue on conditional rights 
during the vesting period. Malus and clawback provisions apply. 

 Executive KMP API outcomes for the 2023 performance year are detailed on pages 48 and 49.

 
54

Remuneration Report  continued

2. 

EXECUTIVE KMP REMUNERATION IN DETAIL

Description

The API is an annual, performance-based incentive, measured over a 12-month period. This plan provides an incentive 

outcome with a clear link between business performance, risk management and individual performance and behaviours, 

and allows further discretion by the Board to be applied where warranted. The API award is delivered as 60% cash and 40% 

deferred as conditional rights to QBE shares (50%:50% in the case of the Group CEO). The conditional rights vest in equal 

tranches over a further four years, on the first, second, third and fourth anniversaries of the award. Vesting is subject to service 

conditions during the deferral period. 

API outcomes may be adjusted by other items (such as material acquisitions or divestments) not included in the business plan 

and as deemed appropriate by the People & Remuneration Committee.

Performance measures and rationale

The performance measures and a summary of achievements and position against targets is set out in the executive KMP 

business scorecard on page 47. Performance above threshold leads to outcomes ranging from 30% up to 150% of target. 

The measures and their rationale for use is provided below:

WEIGHTING % DEFINITION

Financial 

MEASURE/

COR

45.5

Comprises net claims expense, net commission and expenses and 

other income as a percentage of net insurance revenue. The measure 

excludes the impact of risk-free rates because it is consistent with 

the way we report and the basis on which the market assesses the 

underwriting performance of QBE.

RATIONALE

COR is a key measure reflecting 

the underwriting performance of 

our insurance operations, assisting 

to identify areas of underwriting 

profitability leading to improved 

performance.

Group cash 

For the API, this will generally be measured on the same basis used 

Group cash ROE is a measure 

ROE

to determine shareholder dividends, with the detailed calculation set 

of how effectively we are managing 

out on page 13. As a principle, losses due to unbudgeted amortisation/

shareholders’ investment in QBE.

24.5

impairment of intangibles will, other than in exceptional circumstances, 

be included in Group cash ROE so that executives remain accountable 

for the management of intangible assets. 

Non-financial

10.0

culture

10.0

10.0

supports how we assess our 

effectiveness in managing risk, 

both from a qualitative and 

quantitative perspective.

Enabling a more sustainable and 

resilient workforce will assist us to 

deliver a more resilient future for our 

customers, communities and people.

Risk

Risk outcomes are assessed using the Risk Maturity Self-Assessment, 

This multi-dimensional measure 

a framework QBE uses to understand how our risk management 

practices are maturing, how we determine areas of strength and 

identify areas that may require further investment. 

People and 

Investment in our people and the strengthening of alignment and 

collaboration across the enterprise are priorities that enable culture 

in order to drive performance. A blend of quantitative measures and 

qualitative outputs provides a comprehensive view of the effectiveness 

of our people and culture initiatives across the enterprise.

Strategic 

priorities

Our focus in 2023 has been to continue the momentum of our strategic 

How we are actively managing the 

priorities: portfolio optimisation, sustainable growth, bring the enterprise 

business to deliver achievements 

together and modernise our business. 

in each of our strategic priority areas 

is key to delivering our vision.

Individual performance objectives

Aligned with strategic priorities, the individual performance of the executive KMP is assessed both on what was achieved and 

how it was achieved at the end of the year. This embeds the QBE DNA behaviours in remuneration outcomes.

API conditional rights allocation

To calculate the number of conditional rights to be granted, the award value to be deferred is divided by the volume weighted 

average price of QBE shares over the five trading days prior to the grant date. Notional dividends accrue on conditional rights 

during the vesting period. Malus and clawback provisions apply. 

 Executive KMP API outcomes for the 2023 performance year are detailed on pages 48 and 49.

ANNUAL PERFORMANCE INCENTIVE PLAN – KEY DETAILS

LONG TERM INCENTIVE PLAN – KEY DETAILS

Description
The LTI plan consists of an award of conditional rights to QBE shares. Conditional rights are awarded at no cost to the executive KMP.

Performance measures and rationale
Vesting is subject to two performance measures, assessed over a three-year performance period, and service conditions 
throughout the vesting period. LTI outcomes may be adjusted by other items (such as material acquisitions or divestments) not 
included in the business plan and as deemed appropriate by the People & Remuneration Committee. 

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Group cash ROE

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The three-year arithmetic average of the annual Group cash ROE 
over the performance period assessed against targets set in the 
context of the three-year business plan. The Group cash ROE target 
is set with reference to the prevailing risk-free rate plus a set margin.

Group cash ROE is the primary 
financial measure of success for QBE 
and is most tangible for long-term 
decision making. 

Relative Total Shareholder Return

30.0

TSR is the change in percentage value of an entity’s share price plus 
the value of reinvested dividends and any capital returns measured 
over the three-year performance period. TSR of QBE is measured 
against a global insurance peer group detailed below.

The use of a relative TSR measure 
enables stronger pay for performance, 
aligned with shareholders.

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TSR peer group – global insurance peer group

Allianz SE
American International Group, Inc.
AXA SA
Beazley plc
Chubb Limited

CNA Financial Corporation
Hiscox Limited
Insurance Australia Group Limited
QBE Insurance Group Limited
Suncorp Group Limited

The Hartford Financial Services Group, Inc.
The Travelers Companies, Inc.
Zurich Insurance Group AG

LTI conditional rights allocation
To calculate the number of conditional rights granted, the award value is divided by the volume weighted average price 
of QBE shares over the five trading days prior to the grant date. Notional dividends accrue on conditional rights during the 
vesting period. Malus and clawback provisions apply. 

Vesting schedules
For the 2023 LTI, the Group cash ROE and TSR vesting schedules are outlined below:

QBE'S GROUP CASH ROE PERFORMANCE

% OF LTI CONDITIONAL RIGHTS SUBJECT TO THE GROUP CASH ROE 
COMPONENT WHICH MAY VEST

Below risk-free rate + 5.75%
At risk-free rate + 5.75%
Between risk-free rate + 5.75% and risk-free rate + 10.75%
At or above risk-free rate + 10.75%

0%
30%
Straight line vesting between 30% and 100%
100%

QBE'S TSR PERFORMANCE RELATIVE TO THE PEER GROUP

Less than 50th percentile
At the 50th percentile
Between 50th and 75th percentile
75th percentile or greater

% OF LTI CONDITIONAL RIGHTS SUBJECT TO THE TSR COMPONENT 
WHICH MAY VEST

0%
50%
50% plus 2% for each percentile above the 50th percentile
100%

Vesting periods
Following assessment of performance measures at the end of the three-year performance period, conditional rights will vest 
in three tranches (on or about the vesting date) set out in the table below:

TRANCHE VESTING DATE

VESTING PERIOD

PROPORTION OF ELIGIBLE 2023 LTI 
CONDITIONAL RIGHTS TO VEST

1
2
3

27 February 2026
26 February 2027
28 February 2028

End of the three-year performance period
First anniversary of the end of the performance period
Second anniversary of the end of the performance period

33%
33%
34%

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Remuneration Report  continued

2. 

EXECUTIVE KMP REMUNERATION IN DETAIL

Treatment of incentives on termination

Voluntary termination 

All unvested incentives are forfeited. 

Involuntary termination

On termination with cause or for poor performance: 

All unvested incentives are forfeited.

On termination without cause: 

For API, the executive remains eligible to be considered for an award on a pro-rata basis, with any award to be determined following 
the end of the performance year and subject to the standard deferral arrangements. 

‘Good leaver’ provisions (for example, retirement, redundancy, ill health, injury, or mutually agreed separation (in some cases)) will 
apply such that unvested deferred Executive Incentive Plan (EIP), STI and API conditional rights remain in the plan subject to the 
original vesting dates and malus, with clawback provisions included from 2021. 

In cases of good leavers as described above, unvested LTI conditional rights may be reduced to a pro-rata amount to reflect the 
proportion of the performance period in service and may continue to be held subject to the same performance and vesting conditions. 

Legacy equity awards generally remain in the plan subject to the original performance and vesting conditions, however, the People 
& Remuneration Committee has discretion to vest these awards in accordance with the original terms and plan rules.

Other equity schemes 

The information below summarises QBE’s other equity plans mentioned in the Remuneration Report. 

QShare 
Our employee share purchase and matching plan, QShare, was launched in 2023 to bring our enterprise together, encourage 
retention and build share ownership. This plan is globally consistent and allows employees to purchase QBE shares up to an agreed 
threshold using after-tax salary. The QBE shares are matched with conditional rights which may vest in the future, subject to ongoing 
service and retention of the underlying purchased QBE shares. 

2021 LTI award

LTI levelling mechanism

The LTI levelling mechanism, introduced in 2019 and removed after 2021, effectively put a ceiling and a floor on aggregate 
catastrophe claims in determining LTI outcomes, because extreme or benign catastrophe periods can have a material effect across 
multiple LTI awards with the performance periods measured over three consecutive years. The cap and collar uses a range of +/- 1.5% 
of net earned premium on the budgeted catastrophe allowance for which LTI participants are exposed to catastrophe risk. In 2021, 
the Group adjusted cash ROE was 11%. There was no need to adjust the Group cash ROE for catastrophe claims in 2022 or 2023. 

Group cash ROE award targets

The 2021 LTI approach for Group cash ROE, set out in more detail in the 2021 Remuneration Report, addressed the difficulty 
of long-range forecasting due to significant anticipated economic volatility through setting target ranges for each of the three 
performance years at the start of each relevant year and providing disclosure in the following year. The threshold and maximum 
ranges for each relevant year over the performance period are used to create the target range for the three-year performance period:

QBE’S AVERAGE GROUP CASH ROE PERFORMANCE

THRESHOLD

MAXIMUM

2021
2022
2023
Average Group cash ROE over 2021, 2022 and 2023
% of LTI conditional rights subject to the Group cash ROE component which may vest

6.3%
7.9%
12.0%
8.7%
30%

10.3%
11.9%
19.0%
13.7%
100%

Straight-line vesting commences at 30% from the lower range up to 100% at the upper range. Vesting outcomes for the 2021 LTI will 
be disclosed in the 2024 Remuneration Report.

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a
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e
G
r
o
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p

Executive Incentive Plan – until 31 December 2018 (legacy plan)
The EIP was a performance-based incentive delivered in the form of an annual cash payment and deferred award in the form 
of conditional rights to fully paid ordinary QBE shares. Performance was measured over a 12-month period. The conditional rights 
were deferred over four equal tranches: 25% vested over each of the four anniversaries of the award.  

EIP outcomes were subject to the achievement of multiple performance measures comprising Group’s cash ROE and COR targets, 
individual performance ratings and, for divisional staff, divisional COR targets. 

The EIP was replaced by the STI and LTI plans for executive KMP from 2019. The EIP awards made to Peter Burton and Sam 
Harrison prior to their appointments as executive KMP include cash-settled share-based payment awards which are subject 
to the same vesting conditions as the equivalent conditional rights described above. The benefit received at vesting is indexed 
to the movement in the A$ value of QBE’s shares, including dividends declared, in the period between grant and vest dates. 

1

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v

i
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w

Short Term Incentive – until 31 December 2021 (legacy plan)
The STI was a performance-based incentive delivered in the form of an annual cash payment and deferred award in the form 
of conditional rights to fully paid ordinary QBE shares. Performance was measured over a 12-month period. The conditional rights 
were deferred in two equal tranches: 50% vested on the first and second anniversaries of the award. 

STI outcomes were subject to the achievement of a blend of divisional CORs for 2021, Group cash ROE targets, divisional COR 
targets in the case of divisional employees, and individual performance objectives reflecting QBE’s strategic priorities. The STI 
was replaced by the API from 2022.

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The information below summarises QBE’s other equity plans mentioned in the Remuneration Report. 

CONTRACTUAL TERM

GROUP CEO

OTHER EXECUTIVE KMP

Our employee share purchase and matching plan, QShare, was launched in 2023 to bring our enterprise together, encourage 

retention and build share ownership. This plan is globally consistent and allows employees to purchase QBE shares up to an agreed 

threshold using after-tax salary. The QBE shares are matched with conditional rights which may vest in the future, subject to ongoing 

service and retention of the underlying purchased QBE shares. 

Duration

Permanent full-time employment contract until notice given by either party

Notice period  
(by executive KMP or QBE)

12 months

Six to 12 months 

QBE may elect to make a payment  
in lieu of notice

QBE may elect to make a payment  
in lieu of notice

4

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Post-employment restraints  12 months non-compete and non-solicitation

Six to 12 months non-compete and non-solicitation

’

Employment agreements

The table below summarises the material terms for the current executive KMP which are subject to applicable laws. The terms and 
conditions of employment of each executive KMP reflect market conditions at the time of their contract negotiation on appointment 
and thereafter. 

3

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56

Remuneration Report  continued

2. 

EXECUTIVE KMP REMUNERATION IN DETAIL

Treatment of incentives on termination

Voluntary termination 

All unvested incentives are forfeited. 

Involuntary termination

All unvested incentives are forfeited.

On termination without cause: 

On termination with cause or for poor performance: 

For API, the executive remains eligible to be considered for an award on a pro-rata basis, with any award to be determined following 

the end of the performance year and subject to the standard deferral arrangements. 

‘Good leaver’ provisions (for example, retirement, redundancy, ill health, injury, or mutually agreed separation (in some cases)) will 

apply such that unvested deferred Executive Incentive Plan (EIP), STI and API conditional rights remain in the plan subject to the 

original vesting dates and malus, with clawback provisions included from 2021. 

In cases of good leavers as described above, unvested LTI conditional rights may be reduced to a pro-rata amount to reflect the 

proportion of the performance period in service and may continue to be held subject to the same performance and vesting conditions. 

Legacy equity awards generally remain in the plan subject to the original performance and vesting conditions, however, the People 

& Remuneration Committee has discretion to vest these awards in accordance with the original terms and plan rules.

Other equity schemes 

QShare 

2021 LTI award

LTI levelling mechanism

The LTI levelling mechanism, introduced in 2019 and removed after 2021, effectively put a ceiling and a floor on aggregate 

catastrophe claims in determining LTI outcomes, because extreme or benign catastrophe periods can have a material effect across 

multiple LTI awards with the performance periods measured over three consecutive years. The cap and collar uses a range of +/- 1.5% 

of net earned premium on the budgeted catastrophe allowance for which LTI participants are exposed to catastrophe risk. In 2021, 

the Group adjusted cash ROE was 11%. There was no need to adjust the Group cash ROE for catastrophe claims in 2022 or 2023. 

Group cash ROE award targets

The 2021 LTI approach for Group cash ROE, set out in more detail in the 2021 Remuneration Report, addressed the difficulty 

of long-range forecasting due to significant anticipated economic volatility through setting target ranges for each of the three 

performance years at the start of each relevant year and providing disclosure in the following year. The threshold and maximum 

ranges for each relevant year over the performance period are used to create the target range for the three-year performance period:

QBE’S AVERAGE GROUP CASH ROE PERFORMANCE

THRESHOLD

MAXIMUM

2021

2022

2023

Average Group cash ROE over 2021, 2022 and 2023

% of LTI conditional rights subject to the Group cash ROE component which may vest

Straight-line vesting commences at 30% from the lower range up to 100% at the upper range. Vesting outcomes for the 2021 LTI will 

be disclosed in the 2024 Remuneration Report.

6.3%

7.9%

12.0%

8.7%

30%

10.3%

11.9%

19.0%

13.7%

100%

 
 
 
 
 
 
 
 
 
 
 
 
 
58

Remuneration Report  continued

3. 

EXECUTIVE KMP REMUNERATION TABLES

3.1 

Statutory remuneration disclosures 

The following table provides details of the remuneration of QBE’s executive KMP as determined by reference to applicable Australian 
Accounting Standards for the year ended 31 December 2023. Remuneration has been converted to US dollars using the average rate 
of exchange for the relevant year, details of which can be found on page 75.

SHORT-TERM EMPLOYMENT 
BENEFITS

POST-EMPLOYMENT 
BENEFITS

OTHER 1
US$000

API 
CASH 2
US$000

SUPERANNUATION
US$000

OTHER 
LONG-TERM 
EMPLOYEE 
BENEFITS

LEAVE 
ACCRUALS 3
US$000

SHARE-BASED 
PAYMENTS 4, 5
US$000

TERMINATION 
BENEFITS
US$000

Andrew Horton

Peter Burton 6

Jason Harris

Sue Houghton

Amanda Hughes

Fiona Larnach

Inder Singh

Julie Wood 6

YEAR

2023
2022
2023

2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023

Former executive KMP
Sam Harrison 7

Todd Jones 7

Total 

2023
2022
2023
2022
2023
2022

BASE 
SALARY
US$000

1,237
1,246
242

839
801
671
676
533
536
602
607
877
884
242

264
776
711
1,000
6,218
6,526

137
186
23

12
7
6
16
4
5
20
18
6
11
5

10
13
29
33
252
289

855
919
145

634
562
418
520
323
324
231
270
617
628
157

 – 
554
372
600
3,752
4,377

2
3
4

 – 
 – 
17
17
17
17
17
17
17
17
8

 – 
 – 
18
24
100
95

9
32
 – 

 – 
 – 
11
(3)
(15)
45
3
9
(2)
18
 – 

 – 
 – 
 – 
 – 
6
101

2,346
2,125
169

925
716
868
810
439
250
503
356
1,038
867
167

(1,024)
883
1,813
1,081
7,244
7,088

 – 
 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 
 – 

 – 
 – 
 – 
 – 
 – 
 – 

TOTAL
US$000

4,586
4,511
583

2,410
2,086
1,991
2,036
1,301
1,177
1,376
1,277
2,553
2,425
579

(750)
2,226
2,943
2,738
17,572
18,476

1	 Other	includes,	where	relevant,	provision	of	health	insurance,	partner	travel,	accommodation	costs,	staff	insurance	discount	benefits	
received during the year, life assurance and personal accident insurance and applicable taxes. It also includes tax accruals in respect 
of	employment	benefits	and	other	one-off	expenses.	

2  API cash is payable in March 2024 for the 2023 performance year. 
3 

4	

Includes the movement in annual leave and long service leave provisions during the relevant year measured as the present value 
of expected future payments to be made in respect of services provided by employees up to the end of the reporting period. See note 8.6 
to	the	financial	statements	on	page	139	for	more	detail.
Includes	conditional	rights	and	legacy	cash-settled	awards.	The	fair	value	of	conditional	rights	at	grant	date	is	determined	using	appropriate	
models	including	Monte	Carlo	simulations	and	the	Black-Scholes	model,	depending	on	the	vesting	conditions.	The	fair	value	of	each	
conditional right is recognised evenly over the service period ending at vesting date. Where an award will no longer vest, the related 
accounting	charge	for	any	non-market	component	is	reversed	in	full	and	the	reversal	is	included	in	the	table	above.	This	may	include	
conditional rights granted as compensation for incentives forfeited on ceasing previous employment to join QBE. Details of conditional 
rights are provided on pages 59 to 61. 

  Amounts include the reversal and acceleration of accounting charges in relation to Sam Harrison and Todd Jones respectively, for unvested 

incentives on cessation of their employment in accordance with the treatment described on page 56. 

5	 For	Peter	Burton	and	Sam	Harrison,	the	share-based	payments	expense	includes	amounts,	including	reversals,	related	to	legacy	

cash-settled	share-based	awards	for	grants	made	prior	to	their	appointments	as	executive	KMP	under	the	2019	to	2021	EIP	totalling	
$36,000 and ($220,000) respectively. A description of the EIP is provided on page 57.  

6  Peter Burton and Julie Wood were executive KMP for part of the year. Their commencement dates are shown on pages 48 and 49.
7	 Sam	Harrison,	former	Group	Chief	Underwriting	Officer,	was	executive	KMP	to	28	April	2023.	Todd	Jones,	former	CEO,	North	America,	

was	executive	KMP	to	31	August	2023.	Todd	Jones	received	a	pro-rated	2023	API	award	of	48.9%	of	the	maximum	opportunity.			

58

Remuneration Report  continued

3. 

EXECUTIVE KMP REMUNERATION TABLES

3.1 

Statutory remuneration disclosures 

The following table provides details of the remuneration of QBE’s executive KMP as determined by reference to applicable Australian 

Accounting Standards for the year ended 31 December 2023. Remuneration has been converted to US dollars using the average rate 

of exchange for the relevant year, details of which can be found on page 75.

SHORT-TERM EMPLOYMENT 

POST-EMPLOYMENT 

BENEFITS

BENEFITS

OTHER 

LONG-TERM 

EMPLOYEE 

BENEFITS

LEAVE 

OTHER 1

US$000

API 

CASH 2

US$000

SUPERANNUATION

ACCRUALS 3

US$000

US$000

SHARE-BASED 

PAYMENTS 4, 5

US$000

TERMINATION 

BENEFITS

US$000

TOTAL

US$000

Andrew Horton

Peter Burton 6

Jason Harris

Sue Houghton

Amanda Hughes

Fiona Larnach

Inder Singh

Julie Wood 6

Former executive KMP

Sam Harrison 7

Todd Jones 7

Total 

BASE 

SALARY

US$000

1,237

1,246

242

839

801

671

676

533

536

602

607

877

884

242

264

776

711

1,000

6,218

6,526

YEAR

2023

2022

2023

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2023

2022

2023

2022

2023

2022

137

186

23

12

16

7

6

4

5

20

18

6

11

5

10

13

29

33

252

289

855

919

145

634

562

418

520

323

324

231

270

617

628

157

 – 

554

372

600

3,752

4,377

2

3

4

 – 

 – 

17

17

17

17

17

17

17

17

8

 – 

 – 

18

24

100

95

9

32

 – 

 – 

 – 

11

(3)

(15)

45

3

9

(2)

18

 – 

 – 

 – 

 – 

 – 

6

101

2,346

2,125

169

925

716

868

810

439

250

503

356

1,038

867

167

(1,024)

883

1,813

1,081

7,244

7,088

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

 – 

4,586

4,511

583

2,410

2,086

1,991

2,036

1,301

1,177

1,376

1,277

2,553

2,425

579

(750)

2,226

2,943

2,738

17,572

18,476

1	 Other	includes,	where	relevant,	provision	of	health	insurance,	partner	travel,	accommodation	costs,	staff	insurance	discount	benefits	

received during the year, life assurance and personal accident insurance and applicable taxes. It also includes tax accruals in respect 

of	employment	benefits	and	other	one-off	expenses.	

2  API cash is payable in March 2024 for the 2023 performance year. 

3 

Includes the movement in annual leave and long service leave provisions during the relevant year measured as the present value 

of expected future payments to be made in respect of services provided by employees up to the end of the reporting period. See note 8.6 

to	the	financial	statements	on	page	139	for	more	detail.

4	

Includes	conditional	rights	and	legacy	cash-settled	awards.	The	fair	value	of	conditional	rights	at	grant	date	is	determined	using	appropriate	

models	including	Monte	Carlo	simulations	and	the	Black-Scholes	model,	depending	on	the	vesting	conditions.	The	fair	value	of	each	

conditional right is recognised evenly over the service period ending at vesting date. Where an award will no longer vest, the related 

accounting	charge	for	any	non-market	component	is	reversed	in	full	and	the	reversal	is	included	in	the	table	above.	This	may	include	

conditional rights granted as compensation for incentives forfeited on ceasing previous employment to join QBE. Details of conditional 

rights are provided on pages 59 to 61. 

  Amounts include the reversal and acceleration of accounting charges in relation to Sam Harrison and Todd Jones respectively, for unvested 

incentives on cessation of their employment in accordance with the treatment described on page 56. 

5	 For	Peter	Burton	and	Sam	Harrison,	the	share-based	payments	expense	includes	amounts,	including	reversals,	related	to	legacy	

cash-settled	share-based	awards	for	grants	made	prior	to	their	appointments	as	executive	KMP	under	the	2019	to	2021	EIP	totalling	

$36,000 and ($220,000) respectively. A description of the EIP is provided on page 57.  

6  Peter Burton and Julie Wood were executive KMP for part of the year. Their commencement dates are shown on pages 48 and 49.

7	 Sam	Harrison,	former	Group	Chief	Underwriting	Officer,	was	executive	KMP	to	28	April	2023.	Todd	Jones,	former	CEO,	North	America,	

was	executive	KMP	to	31	August	2023.	Todd	Jones	received	a	pro-rated	2023	API	award	of	48.9%	of	the	maximum	opportunity.			

3.2 

Executive KMP shareholdings

The table below provides details of movements during the year in the number of ordinary shares in QBE held by executive KMP, 
including	their	personally-related	parties.	In	prior	years,	where	non-recourse	loans	were	provided	by	the	Group	to	executive	KMP	
for the purchase of shares in QBE, details are shown in the Remuneration Report of each relevant year. There were no loans provided 
to executive KMP during the year ended 31 December 2023.

2023
Andrew Horton
Peter Burton
Jason Harris
Sue Houghton
Amanda Hughes
Fiona Larnach
Inder Singh
Julie Wood

Former executive KMP
Sam Harrison
Todd Jones

INTEREST IN 
SHARES AT 
1 JANUARY 2023  
NUMBER 1

DIVIDENDS 
REINVESTED  
NUMBER

CONDITIONAL 
RIGHTS VESTED 
NUMBER

SHARES 
PURCHASED 
(SOLD) 
NUMBER 2

INTEREST IN 
SHARES AT 
31 DECEMBER 2023 
NUMBER 3

235,959
14
42,371
46,250
18,232
– 
190,430
– 

206
227,108

– 
– 
2,092
2,322
342
265
1,818
– 

4
813

108,270
– 
48,328
46,121
9,340
8,603
84,513
– 

(28,500)
46
(22,729)
(16,942)
58
58
(174,942)
– 

315,729
60
70,062
77,751
27,972
8,926
101,819
– 

60,110
58,783

(60,110)
(70,784)

210
215,920

1	 Amounts	for	Peter	Burton	and	Julie	Wood	reflect	their	respective	holdings	at	the	date	they	became	executive	KMP.	Their	commencement	

dates are shown on pages 48 and 49.

2  The shares listed as sold may either partially or fully relate to sales to meet withholding tax obligations on the vesting of conditional rights. 

Shares purchased include executive KMP participation in QShare. 

3  For former executive KMP Sam Harrison and Todd Jones, this represents their interests in shares at 28 April 2023 and 31 August 2023 

respectively, being the dates they ceased to be executive KMP.

3.3 

Conditional rights movements

Equity awards at QBE are granted in the form of conditional rights. A conditional right is a promise by QBE to acquire or issue 
one fully paid ordinary QBE Insurance Group Limited share where certain conditions are met. The table below details conditional 
rights provided under the terms of both current and legacy plans, details of which can be found on pages 54 to 57, and contractual 
arrangements. LTI conditional rights are subject to future performance hurdles as detailed on page 55. Conditional rights under the 
API	for	the	2023	performance	year	will	typically	be	granted	in	the	first	quarter	of	2024.	

2023
Andrew Horton
Peter Burton
Jason Harris
Sue Houghton
Amanda Hughes
Fiona Larnach
Inder Singh
Julie Wood

BALANCE AT 
1 JANUARY 
2023  
NUMBER 1

611,437
103,783
404,385
273,027
102,123
194,476
440,562
128,985

Former executive KMP
Sam Harrison
Todd Jones

345,619
631,762

GRANTED 
NUMBER

339,974
19,821
158,454
138,245
76,777
80,307
176,638
– 

154,161
199,088

VALUE AT 
GRANT DATE 
US$000 2

VESTED AND 
EXERCISED 
NUMBER

VALUE AT 
VESTING DATE 
US$000

FORFEITED/ 
LAPSED  
NUMBER 3

NOTIONAL 
DIVIDENDS 
ATTACHING IN 
THE YEAR 
NUMBER

BALANCE AT 
31 DECEMBER 
2023  
NUMBER 4

3,191
177
1,466
1,280
713
742
1,634
– 

1,426
1,836

(108,270)
– 
(48,328)
(46,121)
(9,340)
(8,603)
(84,513)
– 

1,094
– 
487
466
94
86
851
– 

– 
– 
(86,076)
– 
– 
– 
(65,360)
– 

25,972
977
13,199
11,245
5,221
8,203
14,395
1,215

869,113
124,581
441,634
376,396
174,781
274,383
481,722
130,200

(60,110)
(58,783)

604
594

(448,982)
(371,650)

9,312
13,446

– 
413,863

1	 Amounts	for	Peter	Burton	and	Julie	Wood	reflect	their	respective	holdings	at	the	date	they	became	executive	KMP.	Their	commencement	

dates are shown on pages 48 and 49.

2  The value at grant date is calculated in accordance with AASB 2 Share-based Payment.
3	 Amounts	for	Jason	Harris,	Inder	Singh	and	Todd	Jones	reflect	lapsed	incentives	related	to	the	2020	LTI	award	and	related	notional	

dividends, details on page 46. Amounts also include awards forfeited by former executive KMP, Sam Harrison and Todd Jones, following 
the cessation of their employment in accordance with the treatment described on page 56.

4  For former executive KMP Sam Harrison and Todd Jones, this represents the balance of conditional rights immediately after 28 April 2023 

and 31 August 2023 respectively, being the dates they ceased to be executive KMP.

59

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1

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60

Remuneration Report  continued

3. 

EXECUTIVE KMP REMUNERATION TABLES

3.4 

Valuation of conditional rights outstanding at 31 December 2023

The table below details the conditional rights issued affecting remuneration of executives in the previous, current or future 
reporting periods:

2023
Andrew Horton

Peter Burton

Jason Harris

Sue Houghton

GRANT

Special
2021 STI
2022 LTI
2022 API
2023 LTI
2019 EIP
2020 EIP
2021 EIP
2022 LTI
2022 API
2023 LTI
QShare
2020 LTI
2021 LTI
2021 STI
2022 LTI
2022 API
2023 LTI
QShare
2021 LTI
Special
2021 STI
2022 LTI
2022 API
2023 LTI
QShare

Fiona Larnach

Amanda Hughes 2020 EIP
2021 EIP
2021 STI
2022 LTI
2022 API
2023 LTI
QShare
2021 LTI
2021 STI
2022 LTI
2022 API
2023 LTI
QShare
2020 LTI
2021 LTI
2021 STI
2022 LTI
2022 API
2023 LTI
QShare
Special
2023 LTI

Inder Singh

Julie Wood

PERFORMANCE 
PERIOD START 
DATE

VESTING/
EXERCISE DATE 2

CONDITIONAL 
RIGHTS AT 
31 DECEMBER 
2023 
NUMBER 3

MAXIMUM 
VALUE OF 
AWARD TO 
VEST 
A$0004

1 Sep 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
1 Jan 2019
1 Jan 2020
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
2023
1 Jan 2020
1 Jan 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
2023
1 Jan 2021
3 Aug 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
2023
1 Jan 2020
1 Jan 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
2023
1 Jan 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
2023
1 Jan 2020
1 Jan 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
2023
30 Jan 2023
1 Jan 2023

2024-2025
26 Feb 2024
2025-2027
2024-2027
2026-2028
23 Feb 2024
2024-2025
2024-2026
2025-2027
2024-2027
2026-2028
2026
2024-2025
2024-2026
26 Feb 2024
2025-2027
2024-2027
2026-2028
2026
2024-2026
1 Mar 2024
26 Feb 2024
2025-2027
2024-2027
2026-2028
2026
2024-2025
2024-2026
26 Feb 2024
2025-2027
2024-2027
2026-2028
2026
2024-2026
26 Feb 2024
2025-2027
2024-2027
2026-2028
2026
2024-2025
2024-2026
26 Feb 2024
2025-2027
2024-2027
2026-2028
2026
2024-2026
2026-2028

 177,216 
 23,000 
 318,453 
 90,956 
 259,488 
 3,213 
 8,936 
 17,816 
 25,100 
 29,556 
 39,900 
 60 
 12,414 
 132,181 
 27,070 
 106,637 
 37,361 
 125,911 
 60 
 97,891 
 39,155 
 8,386 
 88,464 
 34,322 
 108,120 
 58 
 3,654 
 20,131 
 1,092 
 70,765 
 21,418 
 57,663 
 58 
 103,117 
 8,869 
 79,615 
 17,851 
 64,873 
 58 
 9,426 
 148,947 
 26,273 
 114,997 
 41,464 
 140,557 
 58 
 63,986 
 66,214 

 2,112 
 275 
 3,482 
 1,366 
 3,588 
 48 
 83 
 213 
 264 
 444 
 540 
 1 
 32 
 959 
 323 
 1,120 
 561 
 1,714 
 1 
 856 
 426 
 100 
 929 
 516 
 1,472 
 1 
 34 
 240 
 13 
 743 
 322 
 785 
 1 
 748 
 106 
 836 
 268 
 883 
 1 
 97 
 1,081 
 314 
 1,208 
 623 
 1,913 
 1 
 873 
 901 

GRANT DATE 1

1 Sep 2021
28 Feb 2022
5 May 2022
27 Feb 2023
12 May 2023
24 Feb 2020
26 Feb 2021
28 Feb 2022
28 Feb 2022
27 Feb 2023
2023
2023
1 Oct 2020
26 Feb 2021
28 Feb 2022
28 Feb 2022
27 Feb 2023
27 Feb 2023
2023
3 Aug 2021
3 Aug 2021
28 Feb 2022
28 Feb 2022
27 Feb 2023
27 Feb 2023
2023
26 Feb 2021
28 Feb 2022
28 Feb 2022
28 Feb 2022
27 Feb 2023
27 Feb 2023
2023
26 Feb 2021
28 Feb 2022
28 Feb 2022
27 Feb 2023
27 Feb 2023
2023
24 Feb 2020
26 Feb 2021
28 Feb 2022
28 Feb 2022
27 Feb 2023
27 Feb 2023
2023
30 Jan 2023
27 Feb 2023

FAIR VALUE PER 
CONDITIONAL RIGHT  
A$ 5,6,7

GROUP 
CASH 
ROE

– 
– 
 12.13 
– 
 15.26 
– 
– 
– 
 11.94 
– 
 14.92 
– 
– 
 9.30 
– 
 11.94 
– 
 15.02 
– 
 10.89 
– 
– 
 11.94 
– 
 15.02 
– 
– 
– 
– 
 11.94 
– 
 15.02 
– 
 9.30 
– 
 11.94 
– 
 15.02 
– 
– 
 9.30 
– 
 11.94 
– 
 15.02 
– 
– 
 15.02 

TSR

TIME

– 
– 
 8.14 
– 
 10.48 
– 
– 
– 
 7.15 
– 
 10.32 
– 
 2.54 
 5.21 
– 
 7.15 
– 
 10.32 
– 
 6.61 
– 
– 
 7.15 
– 
 10.32 
– 
– 
– 
– 
 7.15 
– 
 10.32 
– 
 5.21 
– 
 7.15 
– 
 10.32 
– 
 10.31 
 5.21 
– 
 7.15 
– 
 10.32 
– 
– 
 10.32 

 11.92 
 11.94 
– 
 15.02 
– 
 14.91 
 9.30 
 11.94 
– 
 15.02 
– 
 12.74 
– 
– 
 11.94 
– 
 15.02 
– 
 12.74 
– 
 10.89 
 11.94 
– 
 15.02 
– 
 12.80 
 9.30 
 11.94 
 11.94 
– 
 15.02 
– 
 12.80 
– 
 11.94 
– 
 15.02 
– 
 12.80 
– 
– 
 11.94 
– 
 15.02 
– 
 12.80 
 13.65 
– 

3. 

EXECUTIVE KMP REMUNERATION TABLES

3.4 

Valuation of conditional rights outstanding at 31 December 2023

2023

GRANT

GRANT DATE 1

PERFORMANCE 
PERIOD START 
DATE

VESTING/
EXERCISE DATE 2

CONDITIONAL 
RIGHTS AT 
31 DECEMBER 
2023 
NUMBER 3

MAXIMUM 
VALUE OF 
AWARD TO 
VEST 
A$0004

2023

GRANT

GRANT DATE 1

DATE

EXERCISE DATE 2

Andrew Horton

Special

1 Sep 2021

1 Sep 2021

2024-2025

PERFORMANCE 

PERIOD START 

VESTING/

Todd Jones

Former executive KMP
Sam Harrison

2019 EIP
2020 EIP
2021 LTI
2021 EIP
2021 STI
2022 LTI
2022 API
2023 LTI
2020 LTI
2021 LTI
2021 STI
2022 LTI
2022 API
2023 LTI

24 Feb 2020
26 Feb 2021
26 Feb 2021
28 Feb 2022
28 Feb 2022
28 Feb 2022
27 Feb 2023
27 Feb 2023
24 Feb 2020
26 Feb 2021
28 Feb 2022
28 Feb 2022
27 Feb 2023
27 Feb 2023

1 Jan 2019
1 Jan 2020
1 Jan 2021
1 Jan 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023
1 Jan 2020
1 Jan 2021
1 Jan 2021
1 Jan 2022
1 Jan 2022
1 Jan 2023

23 Feb 2024
2024-2025
2024-2026
2024-2026
26 Feb 2024
2025-2027
2024-2027
2026-2028
2024-2025
2024-2026
26 Feb 2024
2025-2027
2024-2027
2026-2028

 9,495 
 26,740 
 126,917 
 9,201 
 16,812 
 102,393 
 36,524 
 120,900 
 19,640 
 219,075 
 19,692 
 186,351 
 40,365 
 162,941 

 142 
 249 
 921 
 110 
 201 
 1,075 
 549 
 1,645 
 202 
 1,589 
 235 
 1,957 
 606 
 2,218 

FAIR VALUE PER 
CONDITIONAL RIGHT  
A$ 5,6,7

GROUP 
CASH 
ROE

– 
– 
 9.30 
– 
– 
 11.94 
– 
 15.02 
– 
 9.30 
– 
 11.94 
– 
 15.02 

TSR

TIME

– 
– 
 5.21 
– 
– 
 7.15 
– 
 10.32 
 10.31 
 5.21 
– 
 7.15 
– 
 10.32 

 14.91 
 9.30 
– 
 11.94 
 11.94 
– 
 15.02 
– 
– 
– 
 11.94 
– 
 15.02 
– 

1  Shareholders approved the grant of 2023 LTI for Andrew Horton at the Annual General Meeting on 12 May 2023. Peter Burton’s 2023 LTI 
comprised of two awards with grant dates of 27 February 2023 and 4 September 2023 respectively. The QShare matching conditional 
rights were granted on 11 August 2023 and 11 December 2023. 
2  The expiry date for awards is equivalent to the vesting/exercise date.
Includes original grant of conditional rights and notional dividends. 
3 
For	the	2020	LTI	award,	the	number	of	conditional	rights	shown	reflect	the	extent	to	which	the	ASX	50	peer	group	relative	TSR	performance	
condition was achieved. The Group cash ROE and global relative TSR peer group tranches both lapsed in full, details on page 46. 
For	the	2021	LTI	award,	the	number	of	conditional	rights	reflects	an	equal	proportion	of	Group	cash	ROE	and	combined	relative	TSR	
performance conditions. 
For	the	2022	and	2023	LTI	awards,	the	number	of	conditional	rights	reflects	a	proportion	of	70%	Group	cash	ROE	and	30%	relative	TSR	
performance conditions.
For former executive KMP Sam Harrison and Todd Jones, this represents the balance of conditional rights immediately prior to the date 
they ceased as executive KMP.

4  The maximum value to vest represents the fair value at grant date for all unvested conditional rights. The minimum amount executive KMP 

may receive will be zero if awards do not vest for any reason.

5  The fair value of conditional rights at grant date is determined using appropriate models including Monte Carlo simulations and the 

Black-Scholes	model,	depending	on	the	vesting	conditions.	The	fair	value	of	each	conditional	right	is	recognised	evenly	over	the	service	
period ending at vesting date. 
For	the	2020	LTI	award,	the	relative	TSR	fair	value	at	grant	date	reflects	the	ASX	50	peer	group,	the	only	portion	left	to	vest.	
For	the	2021	LTI	award	granted	on	26	February	2021,	the	relative	TSR	fair	value	reflects	the	weighted	average	fair	value	of	the	ASX	50	peer	
group	of	A$5.33	and	global	peer	group	of	A$5.09.	For	the	2021	LTI	award	granted	on	3	August	2021,	the	relative	TSR	fair	value	reflects	the	
weighted	average	fair	value	of	the	ASX	50	peer	group	of	A$6.77	and	global	peer	group	of	A$6.44.	

6  The fair value of Peter Burton’s 2023 LTI is the weighted average of the two awards on 27 February 2023 and 4 September 2023 respectively: 
the Group cash ROE fair value represents the weighted average of A$15.02 and A$14.82 at the two grant dates, and the relative TSR fair 
value comprises the weighted average of A$10.32 and A$10.31 at the two grant dates.

7  The fair value of QShare matching conditional rights is the weighted average of two awards granted on 11 August 2023 and 11 December 2023 

being A$13.30 and A$12.57 respectively, and may vary by executive KMP based on the number of shares purchased in the period.

60

Remuneration Report  continued

The table below details the conditional rights issued affecting remuneration of executives in the previous, current or future 

reporting periods:

Peter Burton

Jason Harris

Sue Houghton

2021 STI

2022 LTI

2022 API

2023 LTI

2019 EIP

2020 EIP

2021 EIP

2022 LTI

2022 API

2023 LTI

QShare

2020 LTI

2021 LTI

2021 STI

2022 LTI

2022 API

2023 LTI

QShare

2021 LTI

Special

2021 STI

2022 LTI

2022 API

2023 LTI

QShare

2021 EIP

2021 STI

2022 LTI

2022 API

2023 LTI

QShare

2021 LTI

2021 STI

2022 LTI

2022 API

2023 LTI

QShare

2020 LTI

2021 LTI

2021 STI

2022 LTI

2022 API

2023 LTI

QShare

Special

2023 LTI

28 Feb 2022

5 May 2022

27 Feb 2023

12 May 2023

24 Feb 2020

26 Feb 2021

28 Feb 2022

28 Feb 2022

27 Feb 2023

2023

2023

1 Oct 2020

26 Feb 2021

28 Feb 2022

28 Feb 2022

27 Feb 2023

27 Feb 2023

2023

3 Aug 2021

3 Aug 2021

28 Feb 2022

28 Feb 2022

27 Feb 2023

27 Feb 2023

2023

26 Feb 2021

28 Feb 2022

28 Feb 2022

28 Feb 2022

27 Feb 2023

27 Feb 2023

2023

26 Feb 2021

28 Feb 2022

28 Feb 2022

27 Feb 2023

27 Feb 2023

2023

24 Feb 2020

26 Feb 2021

28 Feb 2022

28 Feb 2022

27 Feb 2023

27 Feb 2023

2023

1 Jan 2021

26 Feb 2024

1 Jan 2022

1 Jan 2022

1 Jan 2023

2025-2027

2024-2027

2026-2028

1 Jan 2019

23 Feb 2024

1 Jan 2021

26 Feb 2024

1 Jan 2021

26 Feb 2024

1 Jan 2021

26 Feb 2024

1 Jan 2020

1 Jan 2021

1 Jan 2022

1 Jan 2022

1 Jan 2023

2023

1 Jan 2020

1 Jan 2021

1 Jan 2022

1 Jan 2022

1 Jan 2023

2023

1 Jan 2021

3 Aug 2021

1 Jan 2022

1 Jan 2022

1 Jan 2023

2023

1 Jan 2020

1 Jan 2021

1 Jan 2022

1 Jan 2022

1 Jan 2023

2023

1 Jan 2022

1 Jan 2022

1 Jan 2023

2023

1 Jan 2020

1 Jan 2021

1 Jan 2022

1 Jan 2022

1 Jan 2023

2023

2024-2025

2024-2026

2025-2027

2024-2027

2026-2028

2026

2024-2025

2024-2026

2025-2027

2024-2027

2026-2028

2026

2024-2026

1 Mar 2024

2025-2027

2024-2027

2026-2028

2026

2024-2025

2024-2026

2025-2027

2024-2027

2026-2028

2026

2025-2027

2024-2027

2026-2028

2026

2024-2025

2024-2026

2025-2027

2024-2027

2026-2028

2026

2024-2026

2026-2028

Inder Singh

1 Jan 2021

26 Feb 2024

Julie Wood

30 Jan 2023

30 Jan 2023

27 Feb 2023

1 Jan 2023

CONDITIONAL 

RIGHTS AT 

31 DECEMBER 

MAXIMUM 

VALUE OF 

AWARD TO 

VEST 

A$0004

GROUP 

CASH 

ROE

FAIR VALUE PER 

CONDITIONAL RIGHT  

A$ 5,6,7

TSR

TIME

– 

– 

 11.92 

 11.94 

 2,112 

 275 

 3,482 

 1,366 

 12.13 

 8.14 

 3,588 

 15.26 

 10.48 

2023 

NUMBER 3

 177,216 

 23,000 

 318,453 

 90,956 

 259,488 

 3,213 

 8,936 

 17,816 

 25,100 

 29,556 

 39,900 

 60 

 12,414 

 132,181 

 27,070 

 106,637 

 37,361 

 125,911 

 60 

 97,891 

 39,155 

 8,386 

 88,464 

 34,322 

 58 

 3,654 

 20,131 

 1,092 

 70,765 

 21,418 

 57,663 

 58 

 8,869 

 79,615 

 17,851 

 64,873 

 58 

 9,426 

 148,947 

 26,273 

 114,997 

 41,464 

 140,557 

 58 

 63,986 

 66,214 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 15.02 

– 

– 

– 

 14.91 

 9.30 

 11.94 

– 

 15.02 

– 

 12.74 

– 

 11.94 

– 

 15.02 

– 

 12.74 

– 

– 

 10.89 

 11.94 

– 

 15.02 

– 

– 

– 

– 

 12.80 

 9.30 

 11.94 

 11.94 

– 

 15.02 

– 

 12.80 

– 

 11.94 

– 

 15.02 

– 

 12.80 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 11.94 

– 

 15.02 

– 

– 

 12.80 

 13.65 

 48 

 83 

 213 

 264 

 444 

 540 

 1 

 32 

 959 

 323 

 561 

 1 

 856 

 426 

 100 

 929 

 516 

 1 

 34 

 240 

 13 

 743 

 322 

 785 

 1 

 748 

 106 

 836 

 268 

 883 

 1 

 97 

 314 

 623 

 1 

 873 

 901 

 11.94 

 7.15 

 14.92 

 10.32 

 2.54 

 5.21 

 9.30 

 1,120 

 11.94 

 7.15 

 1,714 

 15.02 

 10.32 

 10.89 

 6.61 

 11.94 

 7.15 

 11.94 

 7.15 

 15.02 

 10.32 

 11.94 

 7.15 

 15.02 

 10.32 

 1,081 

 9.30 

 5.21 

 10.31 

 1,208 

 11.94 

 7.15 

 1,913 

 15.02 

 10.32 

 15.02 

 10.32 

Amanda Hughes 2020 EIP

 108,120 

 1,472 

 15.02 

 10.32 

Fiona Larnach

1 Jan 2021

2024-2026

 103,117 

 9.30 

 5.21 

1 Jan 2021

26 Feb 2024

61

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62

Remuneration Report  continued

4. 

NON-EXECUTIVE DIRECTOR REMUNERATION

The	following	section	contains	information	on	the	approach	to	non-executive	director	remuneration,	their	fees,	other	benefits	
and shareholdings.

Remuneration philosophy

Non-executive	director	remuneration	reflects	QBE’s	desire	to	attract,	motivate	and	retain	experienced	independent	directors	and	
to ensure their active participation in the Group’s affairs for the purpose of corporate governance, regulatory compliance and 
other matters. 

QBE	aims	to	provide	a	level	of	remuneration	for	non-executive	directors	comparable	with	that	of	its	peers,	which	include	international	
financial	institutions.	The	Board	reviews	surveys	published	by	independent	remuneration	consultants	and	other	public	information	
to	ensure	that	fee	levels	are	appropriate.	The	remuneration	arrangements	of	non-executive	directors	are	distinct	and	separate	from	
those of the executive KMP. 

Fee structure and components

The aggregate amount approved by shareholders at the Annual General Meeting on 5 May 2022 was A$4,750,000 per annum. 
The	total	amount	paid	to	non-executive	directors	in	2023	was	A$3,133,676	(2022	A$3,387,953).	

Under	the	current	fee	framework,	non-executive	directors	receive	a	base	fee	expressed	in	Australian	dollars.	In	addition,	
a	non-executive	director	(other	than	the	Chair)	may	receive	further	fees	for	chairing	or	membership	of	a	Board	Committee.	

During	2023,	we	reviewed	the	structure	and	level	of	non-executive	director	fees	to	ensure	they	remain	competitive	in	the	international	
market	in	which	we	operate	and	are	commensurate	with	their	workload.	As	a	result,	Board	fees	have	been	adjusted	upwards	by	3%	
with	effect	from	1	January	2024,	the	first	Board	fee	adjustment	since	2015.	Committee	fees	were	not	adjusted.	

The	non-executive	director	fee	structure	for	2024	(with	comparisons	reflected	for	2023)	is	shown	in	the	table	below:

BOARD/COMMITTEE

ROLE

Board

Committee

Chair
Deputy chair
Member
Chair
Member

Other benefits

2024
A$

683,000
236,000
215,000
50,000
27,000

2023
A$

663,000
229,000
208,000
50,000
27,000

Non-executive	directors	do	not	receive	any	performance-based	remuneration	such	as	cash	incentives	or	equity	awards.	Under	QBE’s	
Constitution,	non-executive	directors	are	entitled	to	be	reimbursed	for	all	travel	and	related	expenses	properly	incurred	in	connection	
with	the	business	of	QBE.	All	non-executive	directors	are	eligible	to	receive	an	annual	cash	travel	allowance	of	A$42,750	(A$64,000	
for the Chair), in addition to fees for the time involved in travelling to Board meetings and other Board commitments. This policy has 
remained	unchanged	since	2015,	with	the	exception	of	the	travel	allowance	being	paused	during	COVID-19.

Superannuation
QBE	pays	superannuation	to	Australian-based	non-executive	directors	in	accordance	with	Australian	superannuation	guarantee	(SG)	
legislation.	Overseas-based	non-executive	directors	receive	the	cash	equivalent	amount	in	addition	to	their	fees.	From	1	July	2023,	
the	SG	contribution	increased	by	0.5%	to	11%.	This	change	is	reflected	in	table	4.1.	

Since	1	January	2020,	Australian-based	directors	may	elect	to	opt	out	of	superannuation	contributions	as	long	as	they	are	still	
receiving contributions from at least one employer. In such cases, a superannuation allowance is paid in lieu of actual contributions. 

62

Remuneration Report  continued

and shareholdings.

Remuneration philosophy

Non-executive	director	remuneration	reflects	QBE’s	desire	to	attract,	motivate	and	retain	experienced	independent	directors	and	

to ensure their active participation in the Group’s affairs for the purpose of corporate governance, regulatory compliance and 

other matters. 

QBE	aims	to	provide	a	level	of	remuneration	for	non-executive	directors	comparable	with	that	of	its	peers,	which	include	international	

financial	institutions.	The	Board	reviews	surveys	published	by	independent	remuneration	consultants	and	other	public	information	

to	ensure	that	fee	levels	are	appropriate.	The	remuneration	arrangements	of	non-executive	directors	are	distinct	and	separate	from	

those of the executive KMP. 

Fee structure and components

The aggregate amount approved by shareholders at the Annual General Meeting on 5 May 2022 was A$4,750,000 per annum. 

The	total	amount	paid	to	non-executive	directors	in	2023	was	A$3,133,676	(2022	A$3,387,953).	

Under	the	current	fee	framework,	non-executive	directors	receive	a	base	fee	expressed	in	Australian	dollars.	In	addition,	

a	non-executive	director	(other	than	the	Chair)	may	receive	further	fees	for	chairing	or	membership	of	a	Board	Committee.	

During	2023,	we	reviewed	the	structure	and	level	of	non-executive	director	fees	to	ensure	they	remain	competitive	in	the	international	

market	in	which	we	operate	and	are	commensurate	with	their	workload.	As	a	result,	Board	fees	have	been	adjusted	upwards	by	3%	

with	effect	from	1	January	2024,	the	first	Board	fee	adjustment	since	2015.	Committee	fees	were	not	adjusted.	

The	non-executive	director	fee	structure	for	2024	(with	comparisons	reflected	for	2023)	is	shown	in	the	table	below:

BOARD/COMMITTEE

Board

ROLE

Chair

Deputy chair

Member

Chair

Member

Committee

Other benefits

2024

A$

683,000

236,000

215,000

50,000

27,000

2023

A$

663,000

229,000

208,000

50,000

27,000

Non-executive	directors	do	not	receive	any	performance-based	remuneration	such	as	cash	incentives	or	equity	awards.	Under	QBE’s	

Constitution,	non-executive	directors	are	entitled	to	be	reimbursed	for	all	travel	and	related	expenses	properly	incurred	in	connection	

with	the	business	of	QBE.	All	non-executive	directors	are	eligible	to	receive	an	annual	cash	travel	allowance	of	A$42,750	(A$64,000	

for the Chair), in addition to fees for the time involved in travelling to Board meetings and other Board commitments. This policy has 

remained	unchanged	since	2015,	with	the	exception	of	the	travel	allowance	being	paused	during	COVID-19.

Superannuation

QBE	pays	superannuation	to	Australian-based	non-executive	directors	in	accordance	with	Australian	superannuation	guarantee	(SG)	

legislation.	Overseas-based	non-executive	directors	receive	the	cash	equivalent	amount	in	addition	to	their	fees.	From	1	July	2023,	

the	SG	contribution	increased	by	0.5%	to	11%.	This	change	is	reflected	in	table	4.1.	

Since	1	January	2020,	Australian-based	directors	may	elect	to	opt	out	of	superannuation	contributions	as	long	as	they	are	still	

receiving contributions from at least one employer. In such cases, a superannuation allowance is paid in lieu of actual contributions. 

4. 

NON-EXECUTIVE DIRECTOR REMUNERATION

4.1 

Remuneration details for non-executive directors

The	following	section	contains	information	on	the	approach	to	non-executive	director	remuneration,	their	fees,	other	benefits	

The	table	below	details	the	nature	and	amount	of	each	component	of	the	remuneration	of	QBE’s	non-executive	directors.	
Remuneration has been converted to US dollars using the average rate of exchange for the relevant year. 

NON-EXECUTIVE 
DIRECTOR

Michael Wilkins

Yasmin Allen

Stephen Ferguson 3

Tan Le

Kathryn Lisson

Sir Brian Pomeroy

Jann Skinner

Eric Smith 4

Rolf Tolle

Peter Wilson 3

Total

YEAR

2023
2022
2023
2022
2023

2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023

2023
2022

SHORT-TERM EMPLOYMENT BENEFITS

POST-EMPLOYMENT BENEFITS

FEES 1
US$000

OTHER
US$000

SUPERANNUATION  
– SG 2
US$000

SUPERANNUATION  
– OTHER 2
US$000

TOTAL
US$000

483
504
202
106
34

221
231
224
239
224
240
218
234
44
233
241
258
74

1,965
2,045

 – 
 – 
 – 
 – 
 – 

3
2
2
2
2
2
 – 
 – 
4
 – 
2
4
1

14
10

17
17
 – 
4
4

 – 
 – 
 – 
 – 
 – 
 – 
9
4
 – 
 – 
 – 
 – 
 – 

30
25

34
35
22
7
 – 

 – 
 – 
 – 
 – 
 – 
 – 
14
20
 – 
 – 
 – 
 – 
 – 

70
62

534
556
224
117
38

224
233
226
241
226
242
241
258
48
233
243
262
75

2,079
2,142

1  Fees include travel allowances and additional fees in lieu of superannuation in Australia. Tan Le, Kathryn Lisson, Sir Brian Pomeroy, 
Eric	Smith,	Rolf	Tolle	and	Peter	Wilson	received	additional	fees	of	10.5%	in	lieu	of	superannuation	in	Australia	from	1	January	2023	
to	30	June	2023,	and	11.0%	from	1	July	2023	to	31	December	2023.	
Fees	also	include	amounts	sacrificed	in	relation	to	the	Director	Share	Acquisition	Plan	(DSAP).	During	2023,	Michael	Wilkins,	Stephen	
Ferguson,	Tan	Le,	Kathryn	Lisson,	Sir	Brian	Pomeroy,	Eric	Smith,	Rolf	Tolle	and	Peter	Wilson	elected	to	sacrifice	a	portion	of	their	director	
pre-tax	base	fees	to	acquire	QBE	shares	to	meet	their	MSR	over	the	required	period.	The	amounts	are	included	in	the	fees	approved	by	
shareholders	and	form	part	of	the	A$3,133,676	on	page	62.	Where	applicable,	the	increase	in	their	shareholdings	in	2023	reflected	in	table	
4.2 was mainly as a result of their participation in the DSAP.

2	 Michael	Wilkins,	Yasmin	Allen,	Stephen	Ferguson	and	Jann	Skinner	are	Australian	residents.	Superannuation	is	calculated	as	10.5%	
of	fees,	up	to	30	June	2023	and	increased	by	0.5%	to	11.0%	through	to	31	December	2023.	Superannuation	in	excess	of	the	statutory	
minimum may be taken as additional cash fees or in the form of superannuation contributions at the option of the director. For all or part 
of 2023, Yasmin Allen and Jann Skinner elected to opt out of superannuation contributions and a superannuation allowance was paid 
in lieu of superannuation contributions.

3	 Stephen	Ferguson	commenced	in	role	on	1	November	2023	and	Peter	Wilson	commenced	in	role	on	1	September	2023.
4  Eric Smith retired on 10 March 2023.

Minimum shareholding requirement

With	effect	from	1	April	2014,	a	non-executive	director	MSR	was	introduced	for	the	Board.	Under	this	requirement,	non-executive	
directors	have	five	years	to	build	a	minimum	shareholding	equal	to	100%	of	annual	base	fees.

To	assist	current	and	new	non-executive	directors	in	meeting	the	requirement,	the	DSAP	was	established	with	effect	from	1	June	2014.	
The	DSAP	allows	non-executive	directors	to	sacrifice	a	portion	of	their	director	pre-tax	base	fees	to	acquire	QBE	shares.	Shares	
acquired	in	this	way	are	not	subject	to	performance	targets,	as	they	are	acquired	in	place	of	cash	payments.	Non-executive	directors’	
shareholdings are shown overleaf. 

All	non-executive	directors	have	met	the	MSR	as	at	31	December	2023,	or	are	within	the	five-year	period	to	achieve	the	MSR.

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64

Remuneration Report  continued

4.  

NON-EXECUTIVE DIRECTOR REMUNERATION

4.2 

Non-executive director shareholdings

The	table	below	details	movements	during	the	year	in	the	number	of	ordinary	shares	in	QBE	held	by	the	non-executive	directors,	
including	their	personally-related	parties:

2023
Michael Wilkins
Yasmin Allen
Stephen Ferguson
Tan Le
Kathryn Lisson
Sir Brian Pomeroy
Jann Skinner
Eric Smith
Rolf Tolle
Peter Wilson

POSITION

TERM AS KMP

Chair
Director
Director
Director
Director
Director
Director
Director
Director
Director

Full year
Full year
Part	year	from	1	November	2023
Full year
Full year
Full year
Full year
Part year to 10 March 2023
Full year
Part year from 1 September 2023

INTEREST IN 
SHARES AT 
1 JANUARY 2023  
NUMBER 1

CHANGES DURING 
THE YEAR 
NUMBER

INTEREST IN 
SHARES AT 
31 DECEMBER 2023 
NUMBER 2

83,783
18,333
– 
8,753
49,010
42,425
70,000
8,767
73,806
– 

8,776
– 
– 
3,740
3,790
3,790
– 
1,910
5,354
– 

92,559
18,333
– 
12,493
52,800
46,215
70,000
10,677
79,160
– 

1  The interest in shares for Stephen Ferguson and Peter Wilson represent their balances at their respective commencement dates 

of	1	November	2023	and	1	September	2023.

2	 The	interest	in	shares	for	Eric	Smith	represents	the	balance	at	the	date	he	retired	as	non-executive	director	on	10	March	2023.

64

Remuneration Report  continued

4.  

NON-EXECUTIVE DIRECTOR REMUNERATION

4.2 

Non-executive director shareholdings

The	table	below	details	movements	during	the	year	in	the	number	of	ordinary	shares	in	QBE	held	by	the	non-executive	directors,	

including	their	personally-related	parties:

2023

Michael Wilkins

Yasmin Allen

Stephen Ferguson

Tan Le

Kathryn Lisson

Sir Brian Pomeroy

Jann Skinner

Eric Smith

Rolf Tolle

Peter Wilson

POSITION

TERM AS KMP

Chair

Director

Director

Director

Director

Director

Director

Director

Director

Director

Full year

Full year

Full year

Full year

Full year

Full year

Full year

Part	year	from	1	November	2023

Part year to 10 March 2023

Part year from 1 September 2023

INTEREST IN 

SHARES AT 

1 JANUARY 2023  

NUMBER 1

CHANGES DURING 

INTEREST IN 

SHARES AT 

THE YEAR 

NUMBER

31 DECEMBER 2023 

NUMBER 2

83,783

18,333

– 

8,753

49,010

42,425

70,000

8,767

73,806

– 

8,776

– 

– 

– 

– 

3,740

3,790

3,790

1,910

5,354

92,559

18,333

– 

12,493

52,800

46,215

70,000

10,677

79,160

– 

1  The interest in shares for Stephen Ferguson and Peter Wilson represent their balances at their respective commencement dates 

of	1	November	2023	and	1	September	2023.

2	 The	interest	in	shares	for	Eric	Smith	represents	the	balance	at	the	date	he	retired	as	non-executive	director	on	10	March	2023.

Directors' Report

FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor
PricewaterhouseCoopers, Chartered Accountants, continues in office in accordance with section 327B of the Corporations Act 2001.

Non-audit services 
During the year, PricewaterhouseCoopers performed certain other services in addition to statutory duties.

The Board, on the advice of the Audit Committee, has considered the position and is satisfied that the provision of non-audit services 
is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are also 
satisfied that the provision of non-audit services by the auditor, as set out in note 8.8 to the financial statements, did not compromise 
the auditor independence requirements of the Corporations Act 2001.

A copy of the auditor’s independence declaration required under section 307C of the Corporations Act 2001 is set out on page 66.

Details of amounts paid or payable to PricewaterhouseCoopers for audit and non-audit services are provided in note 8.8 to the 
financial statements.

Rounding of amounts
The Company is of a kind referred to in the ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. 
Amounts have been rounded off in the Directors’ Report to the nearest million dollars or, in certain cases, to the nearest thousand 
dollars in accordance with that instrument.

Signed in SYDNEY this 16th day of February 2024 in accordance with a resolution of the directors.

Michael Wilkins AO 
Director 

Andrew Horton 
Director

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66

Directors' Report  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor’s independence declaration
As lead auditor for the audit of QBE Insurance Group Limited for the year ended 31 December 2023, I declare that to the best 
of my knowledge and belief, there have been: 

(a)  no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(b)  no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of QBE Insurance Group Limited and the entities it controlled during the period.

Voula Papageorgiou 
Partner, PricewaterhouseCoopers

Sydney 
16 February 2024

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, Sydney  NSW  2001

T: +61 2 8266 0000, F: +61 2 8266 9999

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta  NSW  2124

T: +61 2 9659 2476, F: +61 2 8266 9999

Liability limited by a scheme approved under Professional Standards Legislation.

66

Directors' Report  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor’s independence declaration

of my knowledge and belief, there have been: 

As lead auditor for the audit of QBE Insurance Group Limited for the year ended 31 December 2023, I declare that to the best 

(a)  no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(b)  no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of QBE Insurance Group Limited and the entities it controlled during the period.

Voula Papageorgiou 

Partner, PricewaterhouseCoopers

Sydney 

16 February 2024

Financial Report contents

FINANCIAL STATEMENTS

Consolidated statement of comprehensive income 
Consolidated balance sheet 
Consolidated statement of changes in equity 
Consolidated statement of cash flows 

NOTES TO THE FINANCIAL STATEMENTS

 OVERVIEW 

1. 
1.1  About QBE 
1.2  About this report 
1.3  Segment information 

  UNDERWRITING ACTIVITIES 
Insurance revenue  

2. 
2.1 
2.2  Insurance and reinsurance contract assets and liabilities 
2.3  Claims development – net liability for incurred claims 

  INVESTMENT ACTIVITIES 
Investment income 

3. 
3.1 
3.2  Investments 

  RISK MANAGEMENT 

4. 
4.1  Strategic risk 
4.2  Insurance risk 
4.3  Credit risk 
4.4  Market risk 
4.5  Liquidity risk 
4.6  Operational risk 
4.7  Compliance risk 
4.8  Group risk 

5.  CAPITAL STRUCTURE 
5.1  Borrowings 
5.2  Cash and cash equivalents  
5.3  Contributed equity and reserves 
5.4  Dividends 
5.5  Earnings per share 
5.6  Derivatives 

  TAX 

6. 
6.1  Reconciliation of prima facie tax to income tax expense 
6.2  Deferred income tax 

  GROUP STRUCTURE 

7. 
7.1  Disposals 
7.2 
7.3  Controlled entities 

Intangible assets 

  OTHER 

8. 
8.1  Other accounting policies 
8.2  Contingent liabilities 
8.3  Offsetting financial assets and liabilities 
8.4  Reconciliation of profit after income tax to net cash flows 

from operating activities 

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, Sydney  NSW  2001

T: +61 2 8266 0000, F: +61 2 8266 9999

T: +61 2 9659 2476, F: +61 2 8266 9999

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta  NSW  2124

Liability limited by a scheme approved under Professional Standards Legislation.

8.5  Share‑based payments 
8.6  Key management personnel 
8.7  Defined benefit plans 
8.8  Remuneration of auditors 
8.9  Ultimate parent entity information  

DIRECTORS' DECLARATION 

INDEPENDENT AUDITOR’S REPORT 

This Annual Report includes 
the consolidated financial 
statements for QBE 
Insurance Group Limited (the 
ultimate parent entity or the 
Company) and its controlled 
entities (QBE or the Group). 
All amounts in this Financial 
Report are presented in US 
dollars unless otherwise 
stated. QBE Insurance 
Group Limited is a company 
limited by its shares and 
incorporated and domiciled 
in Australia. Its registered 
office is located at:

Level 18, 388 George Street 
Sydney NSW 2000 
Australia.

A description of the nature 
of the Group’s operations 
and its principal activities 
is included on pages 2 
to 15, none of which is part 
of this Financial Report. 
The Financial Report was 
authorised for issue by the 
directors on 16 February 
2024. The directors have the 
power to amend and reissue 
the financial statements.

Through the use of the 
internet, we have ensured 
that our corporate reporting 
is timely, complete and 
available globally at 
minimum cost to the 
Company. All material press 
releases, this Financial 
Report and other information 
are available at our QBE 
investor centre at our 
website: www.qbe.com.

68
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72
72
73
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68

Consolidated statement  
of comprehensive income

FOR THE YEAR ENDED 31 DECEMBER 2023

Insurance revenue
Insurance service expenses
Reinsurance expenses
Reinsurance income
Insurance service result
Other expenses
Other income
Insurance operating result
Insurance finance (expenses) income 
Reinsurance finance income (expenses)
Investment income (loss) – policyholders’ funds
Investment expenses – policyholders’ funds
Insurance profit
Investment income (loss) – shareholders’ funds
Investment expenses – shareholders’ funds
Financing and other costs
Gain on sale of entities and businesses
Share of net loss of associates
Restructuring and related expenses
Impairment of owner occupied property
Amortisation and impairment of intangibles  
Profit before income tax
Income tax expense
Profit after income tax
Other comprehensive income (loss)
Items that may be reclassified to profit or loss
Net movement in foreign currency translation reserve
Net movement in cash flow hedge and cost of hedging reserves
Income tax relating to these components of other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans
Income tax relating to this component of other comprehensive income
Other comprehensive income (loss) after income tax
Total comprehensive income after income tax
Profit after income tax attributable to:
Ordinary equity holders of the Company 
Non-controlling interests

Total comprehensive income after income tax attributable to:
Ordinary equity holders of the Company 
Non-controlling interests

NOTE

2.1

2.2.1
2.2.1

2.2.1
2.2.1
3.1
3.1

3.1
3.1
5.1.2
7.1

7.2

6.1

5.3.2
5.3.2
5.3.2

2023
US$M

20,826
(18,421)
(4,848)
3,946
1,503
(250)
62
1,315
(1,039)
460
907
(24)
1,619
499
(13)
(232)
2
(2)
– 
(25)
(11)
1,837
(473)
1,364

138
(8)
2

(7)
2
127
1,491

1,355
9
1,364

1,482
9
1,491

RESTATED 
2022
US$M

18,904
(17,579)
(3,850)
3,496
971
(286)
74
759
1,157
(120)
(482)
(19)
1,295
(262)
(10)
(245)
38
(7)
(106)
– 
(27)
676
(81)
595

(377)
33
(10)

(36)
10
(380)
215

587
8
595

207
8
215

EARNINGS PER SHARE FOR PROFIT AFTER INCOME TAX ATTRIBUTABLE TO ORDINARY 
EQUITY HOLDERS OF THE COMPANY

For profit after income tax 
Basic earnings per share
Diluted earnings per share

NOTE

5.5
5.5

2023
US CENTS

87.6
87.0

RESTATED 
2022
US CENTS

36.2
36.0

The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

The Group adopted AASB 17 Insurance Contracts from 1 January 2023 and has correspondingly restated the comparative period. 
The impacts of adoption are detailed in note 8.1.1.

68

Consolidated statement  

of comprehensive income

FOR THE YEAR ENDED 31 DECEMBER 2023

Consolidated balance sheet

AS AT 31 DECEMBER 2023

Insurance revenue

Insurance service expenses

Reinsurance expenses

Reinsurance income

Insurance service result

Other expenses

Other income

Insurance operating result

Insurance finance (expenses) income 

Reinsurance finance income (expenses)

Investment income (loss) – policyholders’ funds

Investment expenses – policyholders’ funds

Insurance profit

Investment income (loss) – shareholders’ funds

Investment expenses – shareholders’ funds

Financing and other costs

Gain on sale of entities and businesses

Share of net loss of associates

Restructuring and related expenses

Impairment of owner occupied property

Amortisation and impairment of intangibles  

Profit before income tax

Income tax expense

Profit after income tax

Other comprehensive income (loss)

Items that may be reclassified to profit or loss

Net movement in foreign currency translation reserve

Net movement in cash flow hedge and cost of hedging reserves

Income tax relating to these components of other comprehensive income

Items that will not be reclassified to profit or loss

Remeasurement of defined benefit plans

Income tax relating to this component of other comprehensive income

Other comprehensive income (loss) after income tax

Total comprehensive income after income tax

Profit after income tax attributable to:

Ordinary equity holders of the Company 

Non-controlling interests

Total comprehensive income after income tax attributable to:

Ordinary equity holders of the Company 

Non-controlling interests

NOTE

2.1

2.2.1

2.2.1

2.2.1

2.2.1

3.1

3.1

3.1

3.1

5.1.2

7.1

7.2

6.1

5.3.2

5.3.2

5.3.2

2023

US$M

20,826

(18,421)

(4,848)

3,946

1,503

(250)

62

1,315

(1,039)

460

907

(24)

1,619

499

(13)

(232)

2

(2)

– 

(25)

(11)

1,837

(473)

1,364

138

(8)

2

(7)

2

127

1,491

1,355

9

9

1,364

1,482

1,491

RESTATED 

2022

US$M

18,904

(17,579)

(3,850)

3,496

971

(286)

74

759

1,157

(120)

(482)

(19)

1,295

(262)

(10)

(245)

38

(7)

(106)

– 

(27)

676

(81)

595

(377)

33

(10)

(36)

10

(380)

215

587

8

595

207

8

215

Assets 
Cash and cash equivalents
Investments 
Derivative financial instruments
Other receivables
Current tax assets 
Reinsurance contract assets
Other assets 
Assets held for sale 
Defined benefit plan surpluses 
Right-of-use lease assets
Property, plant and equipment 
Deferred tax assets 
Investment properties 
Investment in associates 
Intangible assets 
Total assets 
Liabilities 
Derivative financial instruments
Other payables
Current tax liabilities 
Insurance contract liabilities
Lease liabilities
Provisions 
Defined benefit plan deficits 
Deferred tax liabilities 
Borrowings
Total liabilities 
Net assets 
Equity
Contributed equity
Treasury shares held in trust
Reserves  
Retained profits
Shareholders’ equity
Non-controlling interests
Total equity

NOTE

5.2
3.2
5.6

2.2

8.7

6.2

7.2

5.6

2.2

8.7
6.2
5.1

5.3.1

5.3.2

2023
US$M

1,366
28,670
250
519
30
8,034
2
1
39
264
119
625
28
49
2,112
42,108

373
432
127
27,567
289
180
23
366
2,798
32,155
9,953

9,381
(3)
(1,273)
1,845
9,950
3
9,953

RESTATED

2022
US$M

833
27,299
284
423
45
7,144
2
– 
46
276
151
613
35
32
2,018
39,201

387
347
39
26,148
301
203
26
149
2,744
30,344
8,857

9,242
(1)
(1,363)
977
8,855
2
8,857

1 JANUARY 
2022
US$M

819
28,111
142
570
5
6,713
2
50
92
328
155
526
37
28
2,449
40,027

452
414
23
26,358
354
129
29
72
3,268
31,099
8,928

9,777
(2)
(1,608)
760
8,927
1
8,928

EARNINGS PER SHARE FOR PROFIT AFTER INCOME TAX ATTRIBUTABLE TO ORDINARY 

The consolidated balance sheet should be read in conjunction with the accompanying notes.

The Group adopted AASB 17 Insurance Contracts from 1 January 2023 and has correspondingly restated the comparative period. 
The impacts of adoption are detailed in note 8.1.1.

EQUITY HOLDERS OF THE COMPANY

For profit after income tax 

Basic earnings per share

Diluted earnings per share

NOTE

5.5

5.5

2023

US CENTS

87.6

87.0

RESTATED 

2022

US CENTS

36.2

36.0

The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

The Group adopted AASB 17 Insurance Contracts from 1 January 2023 and has correspondingly restated the comparative period. 

The impacts of adoption are detailed in note 8.1.1.

69

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70

Consolidated statement 
of changes in equity

FOR THE YEAR ENDED 31 DECEMBER 2023

SHAREHOLDERS’ EQUITY

CONTRIBUTED 
EQUITY 
US$M

TREASURY 
SHARES HELD 
IN TRUST 
US$M

RESERVES 
US$M

RETAINED 
PROFITS 
US$M

At 1 January 2023 (restated)
Profit after income tax  
Other comprehensive income (loss)
Total comprehensive income
Transactions with owners in their 
capacity as owners
Shares issued under Employee Share 
and Option Plan and held in trust
Share-based payment expense
Shares vested and/or released
Dividends paid on ordinary shares
Dividend Reinvestment Plan and 
Bonus Share Plan
Distributions on capital notes
Foreign exchange
At 31 December 2023

9,242 
– 
– 
– 

36 
– 
– 
– 

49 
– 
54 
9,381 

(1)
– 
– 
– 

(37)
– 
35 
– 

– 
– 
– 
(3)

(1,363)
– 
132 
132 

– 
42 
(35)
– 

– 
– 
(49)
(1,273)

977 
1,355 
(5)
1,350 

– 
– 
– 
(435)

3 
(50)
– 
1,845 

SHAREHOLDERS’ EQUITY

CONTRIBUTED 
EQUITY 
US$M

TREASURY 
SHARES HELD 
IN TRUST 
US$M

RESERVES 
US$M

RETAINED 
PROFITS 
US$M

At 1 January 2022, as previously 
reported
Impact of initial application of AASB 17 
(note 8.1.1)
At 1 January 2022 (restated)
Profit after income tax  
Other comprehensive loss
Total comprehensive (loss) income 
Transactions with owners in their 
capacity as owners
Shares issued under Employee Share 
and Option Plan and held in trust
Share-based payment expense
Shares vested and/or released
Dividends paid on ordinary shares
Dividend Reinvestment Plan and 
Bonus Share Plan
Distributions on capital notes
Foreign exchange
At 31 December 2022 (restated)

9,777 

– 
9,777 
– 
– 
– 

29 
– 
– 
– 

36 
– 
(600)
9,242 

(2)

– 
(2)
– 
– 
– 

(30)
– 
31 
– 

– 
– 
– 
(1)

(1,608)

– 
(1,608)
– 
(354)
(354)

– 
39 
(31)
– 

– 
– 
591 
(1,363)

714 

46 
760 
587 
(26)
561 

– 
– 
– 
(297)

3 
(50)
– 
977 

NON-
CONTROLLING  
INTERESTS 
US$M

2 
9 
– 
9 

– 
– 
– 
(8)

– 
– 
– 
3 

NON-
CONTROLLING  
INTERESTS 
US$M

1 

– 
1 
8 
– 
8 

– 
– 
– 
(7)

– 
– 
– 
2 

TOTAL 
US$M

8,855 
1,355 
127 
1,482 

(1)
42 
– 
(435)

52 
(50)
5 
9,950 

TOTAL 
US$M

8,881 

46 
8,927 
587 
(380)
207 

(1)
39 
– 
(297)

39 
(50)
(9)
8,855 

TOTAL 
EQUITY 
US$M

8,857 
1,364 
127 
1,491 

(1)
42 
– 
(443)

52 
(50)
5 
9,953 

TOTAL 
EQUITY 
US$M

8,882 

46 
8,928 
595 
(380)
215 

(1)
39 
– 
(304)

39 
(50)
(9)
8,857 

The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

The Group adopted AASB 17 Insurance Contracts from 1 January 2023 and has correspondingly restated the comparative period. 
The impacts of adoption are detailed in note 8.1.1.

70

Consolidated statement 

of changes in equity

FOR THE YEAR ENDED 31 DECEMBER 2023

SHAREHOLDERS’ EQUITY

CONTRIBUTED 

SHARES HELD 

TREASURY 

EQUITY 

US$M

9,242 

IN TRUST 

US$M

RESERVES 

US$M

NON-

CONTROLLING  

INTERESTS 

US$M

RETAINED 

PROFITS 

US$M

977 

1,355 

(5)

1,350 

At 1 January 2023 (restated)

Profit after income tax  

Other comprehensive income (loss)

Total comprehensive income

Transactions with owners in their 

capacity as owners

Shares issued under Employee Share 

and Option Plan and held in trust

Share-based payment expense

Shares vested and/or released

Dividends paid on ordinary shares

Dividend Reinvestment Plan and 

Bonus Share Plan

Distributions on capital notes

Foreign exchange

At 31 December 2023

At 1 January 2022, as previously 

reported

(note 8.1.1)

Impact of initial application of AASB 17 

At 1 January 2022 (restated)

Profit after income tax  

Other comprehensive loss

Total comprehensive (loss) income 

Transactions with owners in their 

capacity as owners

Shares issued under Employee Share 

and Option Plan and held in trust

Share-based payment expense

Shares vested and/or released

Dividends paid on ordinary shares

Dividend Reinvestment Plan and 

Bonus Share Plan

Distributions on capital notes

Foreign exchange

At 31 December 2022 (restated)

– 

– 

– 

36 

– 

– 

– 

49 

– 

54 

9,777 

9,777 

– 

– 

– 

– 

29 

– 

– 

– 

36 

– 

(600)

9,242 

(435)

(435)

9,381 

1,845 

9,950 

(1)

– 

– 

– 

(37)

– 

35 

– 

– 

– 

– 

(3)

(2)

– 

(2)

– 

– 

– 

(30)

– 

31 

– 

– 

– 

– 

(1)

(1,363)

– 

132 

132 

– 

42 

(35)

– 

– 

– 

(49)

(1,273)

(1,608)

(1,608)

– 

– 

(354)

(354)

– 

39 

(31)

– 

– 

– 

591 

(1,363)

TOTAL 

US$M

8,855 

1,355 

127 

1,482 

(1)

42 

– 

52 

(50)

5 

TOTAL 

US$M

8,881 

46 

8,927 

587 

(380)

207 

(1)

39 

– 

39 

(50)

(9)

8,855 

– 

– 

– 

(50)

3 

– 

714 

46 

760 

587 

(26)

561 

– 

– 

– 

(50)

3 

– 

977 

(297)

(297)

SHAREHOLDERS’ EQUITY

CONTRIBUTED 

SHARES HELD 

TREASURY 

EQUITY 

US$M

IN TRUST 

US$M

RESERVES 

US$M

RETAINED 

PROFITS 

US$M

NON-

CONTROLLING  

INTERESTS 

US$M

TOTAL 

EQUITY 

US$M

8,857 

1,364 

127 

1,491 

(1)

42 

– 

(443)

52 

(50)

5 

9,953 

TOTAL 

EQUITY 

US$M

8,882 

46 

8,928 

595 

(380)

215 

(1)

39 

– 

(304)

39 

(50)

(9)

8,857 

2 

9 

– 

9 

– 

– 

– 

(8)

– 

– 

– 

3 

1 

– 

1 

8 

– 

8 

– 

– 

– 

(7)

– 

– 

– 

2 

The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

The Group adopted AASB 17 Insurance Contracts from 1 January 2023 and has correspondingly restated the comparative period. 

The impacts of adoption are detailed in note 8.1.1.

Consolidated statement  
of cash flows

FOR THE YEAR ENDED 31 DECEMBER 2023

Operating activities
Premium received
Reinsurance recoveries received 
Reinsurance premium paid net of ceding commissions received
Acquisition costs paid
Claims and other insurance service expenses paid
Interest received
Dividends received
Other operating payments
Interest paid
Income taxes paid
Net cash flows from operating activities
Investing activities
Net proceeds on sale (payments for purchase) of growth assets
Net payments for purchase of interest-bearing financial assets
Net payments for foreign exchange transactions
Payments for purchase of intangible assets
Payments for purchase of property, plant and equipment
Payments for investment in associates
Proceeds on disposal of entities and businesses (net of cash disposed)
Proceeds on disposal of joint venture investment
Net cash flows from investing activities
Financing activities
Purchase of treasury shares
Payments relating to principal element of lease liabilities
Proceeds from borrowings
Repayments of borrowings
Dividends and distributions paid
Net cash flows from financing activities
Net movement in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of exchange rate changes
Cash and cash equivalents at the end of the year

NOTE

8.4

5.2

2023
US$M

20,924
4,608
(5,879)
(3,732)
(14,284)
703
50
(509)
(240)
(138)
1,503

54
(284)
(23)
(145)
(23)
(19)
9
3
(428)

(1)
(55)
405
(406)
(441)
(498)
577
833
(44)
1,366

RESTATED  
2022
US$M

18,472
2,502
(3,469)
(3,483)
(10,953)
421
126
(463)
(246)
(74)
2,833

(512)
(1,494)
(186)
(132)
(33)
(11)
361
– 
(2,007)

(1)
(62)
– 
(412)
(315)
(790)
36
819
(22)
833

The consolidated statement of cash flows should be read in conjunction with the accompanying notes.

The Group adopted AASB 17 Insurance Contracts from 1 January 2023 and has correspondingly restated the comparative period. 
The impacts of adoption are detailed in note 8.1.1.

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72

Notes to the financial statements

FOR THE YEAR ENDED 31 DECEMBER 2023

1. 

OVERVIEW

1.1 

About QBE

About QBE Insurance Group
QBE is one of the world’s largest insurance and reinsurance companies, with operations in all the major insurance markets. Formed 
in Australia in 1886, QBE employs more than 13,000 people and carries on insurance activities in 27 countries, with operations in 
Australia, Europe, North America, Asia and the Pacific. QBE’s captive reinsurers, Equator Re and Blue Ocean Re (collectively referred 
to as ‘Equator Re’), provide reinsurance protection to our divisions in conjunction with the Group’s external reinsurance programs.

The Company is listed on the Australian Securities Exchange and is a for-profit entity.

About insurance
In simple terms, insurance and reinsurance companies help their customers (consumers, businesses and other insurance companies) 
to manage risk. More broadly put, an insurance company creates value by pooling and redistributing risk. This is done by collecting premium 
from those that it insures (i.e. policyholders), and then paying the claims of those that call upon their insurance protection. A company 
may also choose to reduce some of its own accumulated risk through the use of outward reinsurance (or referred to as reinsurance 
contracts held), which is insurance for insurance companies. As not all policyholders will actually experience a claim event, the effective 
pooling and redistribution of risk lowers the total cost of risk management, thereby making insurance protection more cost effective for all.

The operating model of insurance companies relies on profits being generated by: 

• appropriately pricing risk and charging adequate premium to cover the expected payouts that will be incurred over the life of the 

insurance policy (both claims and operating expenses); and 

• earning a return on the collected premium and funds withheld to pay future claims through the adoption of an appropriate 

investment strategy. 

Insurance therefore serves a critical function of providing customers with the confidence to achieve their business and personal goals 
through cost-effective risk management. This is achieved within a highly regulated environment, designed to ensure that insurance 
companies maintain adequate capital to protect the interests of policyholders.

The diagram below presents a simplified overview of the key components of this Financial Report:

ss kk    MM aa nn aa gg eemmeenntt  FFrraammeewwoorrkk    NNoottee  44  
R i s k   m anagement  Note 4 

RR ii

Debt and
equity investors

Note 2

Underwriting
activities

D
e
b
t
a
n
d
e
q
u
i
t
y

i

i

D
v
d
e
n
d
s
a
n
d

i

n
t
e
r
e
s
t

Note 5
Capital
structure

Policyholders

Premium

Claims

Reinsurers

Reinsurance premium

Reinsurance recoveries

Notes 6 to 8

Other costs of 
doing business

Note 1

T
a
x
e
s

O
t
h
e
r
c
o
s
t
s

Investments

Dividends and interest

Fixed income
assets
and growth
assets

Note 3

Investment
activities

Tax authorities,
service providers,
employees, etc.

RRiisskk  MMaannaaggeemmeenntt  FFrraa mm ee ww oo rr kk      NN oo tt
Risk manageme n t  

  N o t e   4  

ee    44   

 
 
 
 
 
72

73

Notes to the financial statements

FOR THE YEAR ENDED 31 DECEMBER 2023

1. 

OVERVIEW

1.1 

About QBE

About QBE Insurance Group

QBE is one of the world’s largest insurance and reinsurance companies, with operations in all the major insurance markets. Formed 

in Australia in 1886, QBE employs more than 13,000 people and carries on insurance activities in 27 countries, with operations in 

Australia, Europe, North America, Asia and the Pacific. QBE’s captive reinsurers, Equator Re and Blue Ocean Re (collectively referred 

to as ‘Equator Re’), provide reinsurance protection to our divisions in conjunction with the Group’s external reinsurance programs.

The Company is listed on the Australian Securities Exchange and is a for-profit entity.

About insurance

In simple terms, insurance and reinsurance companies help their customers (consumers, businesses and other insurance companies) 

to manage risk. More broadly put, an insurance company creates value by pooling and redistributing risk. This is done by collecting premium 

from those that it insures (i.e. policyholders), and then paying the claims of those that call upon their insurance protection. A company 

may also choose to reduce some of its own accumulated risk through the use of outward reinsurance (or referred to as reinsurance 

contracts held), which is insurance for insurance companies. As not all policyholders will actually experience a claim event, the effective 

pooling and redistribution of risk lowers the total cost of risk management, thereby making insurance protection more cost effective for all.

The operating model of insurance companies relies on profits being generated by: 

• appropriately pricing risk and charging adequate premium to cover the expected payouts that will be incurred over the life of the 

insurance policy (both claims and operating expenses); and 

• earning a return on the collected premium and funds withheld to pay future claims through the adoption of an appropriate 

investment strategy. 

Insurance therefore serves a critical function of providing customers with the confidence to achieve their business and personal goals 

through cost-effective risk management. This is achieved within a highly regulated environment, designed to ensure that insurance 

companies maintain adequate capital to protect the interests of policyholders.

The diagram below presents a simplified overview of the key components of this Financial Report:

R i s k   m anagement  Note 4 

ss kk    MM aa nn aa gg eemmeenntt  FFrraammeewwoorrkk    NNoottee  44  

RR ii

Debt and

equity investors

Note 2

Underwriting

activities

Note 5

Capital

structure

D

e

b

t

a

n

d

e

q

u

i

t

y

D

i

v

i

d

e

n

d

s

a

n

d

i

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t

e

r

e

s

t

Note 1

T

a

x

e

s

O

t

h

e

r

c

o

s

t

s

Policyholders

Premium

Claims

Reinsurers

Reinsurance premium

Reinsurance recoveries

Investments

Dividends and interest

Fixed income

assets

and growth

assets

Notes 6 to 8

Other costs of 

doing business

Note 3

Investment

activities

Tax authorities,

service providers,

employees, etc.

RRiisskk  MMaannaaggeemmeenntt  FFrraa mm ee ww oo rr kk      NN oo tt

Risk manageme n t  

  N o t e   4  

ee    44   

1.2 

About this report

This Financial Report includes the consolidated financial statements of QBE Insurance Group Limited (the ultimate parent entity 
or the Company) and its controlled entities (QBE or the Group). 

The Financial Report includes the four primary statements, namely the statement of comprehensive income (which comprises profit 
or loss and other comprehensive income or loss), balance sheet, statement of changes in equity and statement of cash flows as well 
as associated notes as required by Australian Accounting Standards. Disclosures have been grouped into the following categories 
in order to assist users in their understanding of the financial statements: 

1.  Overview contains information that impacts the Financial Report as a whole as well as segment reporting disclosures.

2.  Underwriting activities brings together results and balance sheet disclosures relevant to the Group’s insurance activities.

3. 

Investment activities includes results and balance sheet disclosures relevant to the Group’s investments.

4.  Risk management provides commentary on the Group’s exposure to various financial and capital risks, explaining the potential 

impact on the results and balance sheet and how the Group manages these risks.

5.  Capital structure provides information about the debt and equity components of the Group’s capital.

6.  Tax includes disclosures relating to the Group’s tax expense and balances.

7.  Group structure provides a summary of the Group’s controlled entities and includes disclosures in relation to transactions 

impacting the Group structure.

8.  Other includes additional disclosures required to comply with Australian Accounting Standards.

Where applicable within each note, disclosures are further analysed as follows:

• Overview provides some context to assist users in understanding the disclosures.

• Disclosures (both numbers and commentary) provide analysis of balances as required by Australian Accounting Standards. 

• How we account for the numbers summarises the accounting policies relevant to an understanding of the numbers.

• Critical accounting judgements and estimates explains the key estimates and judgements applied by QBE in determining 

the numbers.

The notes include information which the directors believe is required to understand the financial statements and is material and 
relevant to the operations, balance sheet and results of the Group. Information is considered material and relevant if:

• the amount in question is significant because of its size or nature;

• it is important to assist in understanding the results of the Group;

• it helps to explain the impact of significant changes in the Group’s business – for example, significant acquisitions or disposals; or

• it relates to an aspect of the Group’s operations that is important to its future performance.

Basis of preparation

1.2.1 
This Financial Report is a general purpose financial report which:

• has been prepared in accordance with Australian Accounting Standards and the Corporations Act 2001;

• complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) 

and Interpretations as issued by the IFRS Interpretations Committee (IFRIC);

• has been prepared on a historical cost basis as modified by certain exceptions, the most significant of which are the measurement 

of investments and derivatives at fair value and the measurement of the net insurance contract liabilities at present value;

• is presented in US dollars; and

• is presented with values rounded to the nearest million dollars or, in certain cases, to the nearest thousand dollars in accordance 

with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191.

New and amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are 
now effective are detailed in note 8.1.1.

The Group has adopted AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current 
or Non-current and AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants as listed 
in note 8.1.1. Other than these, the Group has not adopted any other Accounting Standards and Interpretations that have been issued 
or amended but are not yet effective as listed in note 8.1.2.

The consolidated financial statements incorporate the assets and liabilities of all entities controlled by the Company as at 31 December 
2023 and the results for the financial year then ended. In preparing the consolidated financial statements, all transactions between 
controlled entities are eliminated in full. Where control of an entity commences or ceases during a financial year, the results are 
included for that part of the year during which control existed. A list of entities controlled by the Company at the balance date 
is contained in note 7.3. 

Lloyd’s syndicates are accounted for on a proportional basis. The nature of Lloyd’s syndicates is such that, even when one party 
provides the majority of capital, the syndicate as a whole is not controlled for accounting purposes. 

Where necessary, comparative information has been restated to conform to the current year’s disclosures.

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’

5

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6

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74

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

1. 

OVERVIEW

1.2.2  Critical accounting judgements and estimates
The preparation of the Group’s consolidated financial statements requires management to make judgements and estimates that affect 
reported amounts. 

In view of the geographic and product diversity of its international operations, the Group has developed a centralised risk management 
and policy framework designed to ensure consistency of approach across a number of operational activities, subject to the specific 
requirements of local markets, legislation and regulation. Such operational activities include underwriting, claims management, 
actuarial assessment of the outstanding claims within insurance liabilities and investment management.

Given the centralised approach, sensitivity analyses in respect of critical accounting estimates and judgements are presented 
at the consolidated Group level in order to provide information and analysis which is meaningful, relevant, reliable and comparable 
year-on-year. Sensitivity disclosure at business segment or product level would not provide a meaningful overview given the complex 
interrelationships between the variables underpinning the Group’s operations.

The key areas in which critical estimates and judgements are applied are as follows:

• measurement of insurance and reinsurance contract assets and liabilities (note 2.2);

• recoverability of deferred tax assets (note 6.2.1); and

• impairment testing of intangible assets (note 7.2.1).

The Group has also considered the impact of climate change on the amounts reported and disclosed in the financial statements, 
particularly in the context of the risks and opportunities identified in our climate change disclosures on pages 20 to 33 of this Annual 
Report. Details of how these considerations have been reflected in the critical accounting judgements and estimates are discussed 
in the relevant notes where appropriate. 

1.2.3  Australian pricing promise review 
In 2022, the Group recognised a provision on the balance sheet and a $75 million net cost (before tax) in the consolidated statement 
of comprehensive income following a review of pricing promises across a number of policy administration systems and products which 
identified instances where policy pricing promises were not fully delivered. The net cost comprises amounts for customer remediation, 
interest payable and other costs associated with administering the program. 

In estimating the amounts recognised, assumptions were made based on the findings of the review, including in relation to the number 
of affected customers, and the premiums and interest refundable. As at 31 December 2023, QBE has reviewed the assumptions 
underlying the estimates based on latest information, and payments made, resulting in no material change to the costs recognised 
in profit or loss since the prior year.

74

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

1. 

OVERVIEW

1.2.2  Critical accounting judgements and estimates

The preparation of the Group’s consolidated financial statements requires management to make judgements and estimates that affect 

reported amounts. 

In view of the geographic and product diversity of its international operations, the Group has developed a centralised risk management 

and policy framework designed to ensure consistency of approach across a number of operational activities, subject to the specific 

requirements of local markets, legislation and regulation. Such operational activities include underwriting, claims management, 

actuarial assessment of the outstanding claims within insurance liabilities and investment management.

Given the centralised approach, sensitivity analyses in respect of critical accounting estimates and judgements are presented 

at the consolidated Group level in order to provide information and analysis which is meaningful, relevant, reliable and comparable 

year-on-year. Sensitivity disclosure at business segment or product level would not provide a meaningful overview given the complex 

interrelationships between the variables underpinning the Group’s operations.

The key areas in which critical estimates and judgements are applied are as follows:

• measurement of insurance and reinsurance contract assets and liabilities (note 2.2);

• recoverability of deferred tax assets (note 6.2.1); and

• impairment testing of intangible assets (note 7.2.1).

The Group has also considered the impact of climate change on the amounts reported and disclosed in the financial statements, 

particularly in the context of the risks and opportunities identified in our climate change disclosures on pages 20 to 33 of this Annual 

Report. Details of how these considerations have been reflected in the critical accounting judgements and estimates are discussed 

in the relevant notes where appropriate. 

1.2.3  Australian pricing promise review 

In 2022, the Group recognised a provision on the balance sheet and a $75 million net cost (before tax) in the consolidated statement 

of comprehensive income following a review of pricing promises across a number of policy administration systems and products which 

identified instances where policy pricing promises were not fully delivered. The net cost comprises amounts for customer remediation, 

interest payable and other costs associated with administering the program. 

In estimating the amounts recognised, assumptions were made based on the findings of the review, including in relation to the number 

of affected customers, and the premiums and interest refundable. As at 31 December 2023, QBE has reviewed the assumptions 

underlying the estimates based on latest information, and payments made, resulting in no material change to the costs recognised 

in profit or loss since the prior year.

1.2.4  Foreign currency 

Translation of foreign currency transactions and balances

Transactions included in the financial statements of controlled entities are measured using the currency of the primary economic 
environment in which the entity operates (the functional currency). Foreign currency transactions are translated into functional 
currencies at the spot rates of exchange applicable at the dates of the transactions. At the balance date, monetary assets and 
liabilities denominated in foreign currencies are retranslated at the rates of exchange prevailing at that date. Resulting exchange 
gains and losses are included in profit or loss.

Translation of foreign operations

The results and balance sheets of all foreign operations that have a functional currency different from the Group’s presentation 
currency of US dollars are translated into US dollars as follows:

• income, expenses and other current period movements in comprehensive income are translated at average rates of exchange; and 

• balance sheet items are translated at the closing balance date rates of exchange.

On consolidation, exchange differences arising from the translation of net investments in foreign operations are taken to shareholders’ 
equity and recognised in other comprehensive income. When a foreign operation is sold in whole or part and capital is repatriated, 
exchange differences on translation from the entity’s functional currency to the ultimate parent entity’s functional currency of Australian 
dollars are reclassified out of other comprehensive income and recognised in profit or loss as part of the gain or loss on sale.

Hedging of foreign exchange risk

The Group manages its foreign exchange exposures as part of its foreign currency risk management processes, further information 
on which is provided in note 4.4.

QBE uses borrowings to mitigate currency risk on translation of net investments in foreign operations to the ultimate parent entity’s 
functional currency of Australian dollars. QBE may elect to use derivatives to manage currency translation risk in order to preserve capital. 

QBE also uses derivatives to mitigate risk associated with foreign currency transactions and balances.

The Group designates hedge relationships which meet the specified criteria in AASB 9 Financial Instruments as either cash flow 
hedges or hedges of net investments in foreign operations. Further information on the accounting for derivatives and for designated 
hedge relationships is provided in note 5.6.

Exchange rates

The principal exchange rates used in the preparation of the financial statements were:

A$/US$
£/US$
€/US$

2023

2022

PROFIT OR LOSS

BALANCE SHEET

PROFIT OR LOSS

BALANCE SHEET

0.664
1.243
1.081

0.682
1.275
1.105

0.693
1.232
1.051

0.678
1.203
1.067

75

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76

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

1. 

OVERVIEW

1.3 

Segment information

Overview

Information is provided by operating segment to assist an understanding of the Group’s performance. The operating 
segments are consistent with the basis on which information is provided to the Group Executive Committee for 
measuring performance and determining the allocation of capital, being the basis upon which the Group’s underwriting 
products and services are managed within the various markets in which QBE operates.

Operating segments

The Group’s operating segments are as follows:

• North America writes general insurance, reinsurance and Crop business in the United States.

• International writes general insurance business in the United Kingdom, Europe and Canada. It also writes general 
insurance and reinsurance business through Lloyd’s; worldwide reinsurance business through offices in the United 
Kingdom, the United States, Ireland, Bermuda, Dubai and mainland Europe; and provides personal and commercial 
insurance covers in Hong Kong, Singapore, Malaysia and Vietnam. 

• Australia Pacific primarily underwrites general insurance risks throughout Australia, New Zealand and the Pacific 

region, providing all major lines of insurance for personal and commercial risks.

Corporate & Other includes non-operating holding companies that do not form part of the Group’s insurance operations; 
gains or losses on disposals; and financing costs and amortisation of any intangibles which are not allocated 
to a specific operating segment. Intersegment transactions are priced on an arm’s length basis and are eliminated 
on consolidation.

2023
Insurance revenue – external
Insurance revenue – internal
Insurance service expenses
Reinsurance expenses
Reinsurance income
Insurance service result
Other expenses
Other income
Insurance operating result
Insurance finance expenses
Reinsurance finance income
Investment income (loss) 
– policyholders’ funds 
Insurance (loss) profit
Investment income 
– shareholders’ funds
Financing and other costs
Gain on sale of entities and businesses
Share of net loss of associates
Impairment of owner occupied property
Amortisation of intangibles
Profit (loss) before income tax
Income tax (expense) credit 
Profit (loss) after income tax
Net profit attributable to non-controlling 
interests
Net profit (loss) after income tax attributable 
to ordinary equity holders of the Company

NORTH AMERICA 
US$M

INTERNATIONAL 
US$M

AUSTRALIA 
PACIFIC 
US$M

TOTAL 
REPORTABLE 
SEGMENTS 
US$M

CORPORATE 
& OTHER 
US$M

7,447
– 
(7,595)
(3,015)
3,085
(78)
(42)
2
(118)
(429)
300

140
(107)

145
(1)
– 
– 
(25)
– 
12
(2)
10

– 

10

8,047
12
(6,209)
(1,416)
629
1,063
(70)
4
997
(453)
144

522
1,210

205
(12)
– 
– 
– 
– 
1,403
(331)
1,072

– 

5,318
– 
(4,638)
(417)
232
495
(107)
56
444
(157)
16

248
551

99
(6)
2
(2)
– 
(2)
642
(203)
439

– 

20,812
12
(18,442)
(4,848)
3,946
1,480
(219)
62
1,323
(1,039)
460

910
1,654

449
(19)
2
(2)
(25)
(2)
2,057
(536)
1,521

– 

14
(12)
21
– 
– 
23
(31)
– 
(8)
– 
– 

(27)
(35)

37
(213)
– 
– 
– 
(9)
(220)
63
(157)

(9)

TOTAL 
US$M

20,826
– 
(18,421)
(4,848)
3,946
1,503
(250)
62
1,315
(1,039)
460

883
1,619

486
(232)
2
(2)
(25)
(11)
1,837
(473)
1,364

(9)

1,072

439

1,521

(166)

1,355

76

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

1. 

OVERVIEW

1.3 

Segment information

Overview

Information is provided by operating segment to assist an understanding of the Group’s performance. The operating 

segments are consistent with the basis on which information is provided to the Group Executive Committee for 

measuring performance and determining the allocation of capital, being the basis upon which the Group’s underwriting 

products and services are managed within the various markets in which QBE operates.

Operating segments

The Group’s operating segments are as follows:

• North America writes general insurance, reinsurance and Crop business in the United States.

• International writes general insurance business in the United Kingdom, Europe and Canada. It also writes general 

insurance and reinsurance business through Lloyd’s; worldwide reinsurance business through offices in the United 

Kingdom, the United States, Ireland, Bermuda, Dubai and mainland Europe; and provides personal and commercial 

insurance covers in Hong Kong, Singapore, Malaysia and Vietnam. 

• Australia Pacific primarily underwrites general insurance risks throughout Australia, New Zealand and the Pacific 

region, providing all major lines of insurance for personal and commercial risks.

Corporate & Other includes non-operating holding companies that do not form part of the Group’s insurance operations; 

gains or losses on disposals; and financing costs and amortisation of any intangibles which are not allocated 

to a specific operating segment. Intersegment transactions are priced on an arm’s length basis and are eliminated 

on consolidation.

2023

Insurance revenue – external

Insurance revenue – internal

Insurance service expenses

Reinsurance expenses

Reinsurance income

Insurance service result

Other expenses

Other income

Insurance operating result

Insurance finance expenses

Reinsurance finance income

Investment income (loss) 

– policyholders’ funds 

Insurance (loss) profit

Investment income 

– shareholders’ funds

Financing and other costs

Gain on sale of entities and businesses

Share of net loss of associates

Impairment of owner occupied property

Amortisation of intangibles

Profit (loss) before income tax

Income tax (expense) credit 

Profit (loss) after income tax

Net profit attributable to non-controlling 

interests

Net profit (loss) after income tax attributable 

to ordinary equity holders of the Company

NORTH AMERICA 

INTERNATIONAL 

TOTAL 

AUSTRALIA 

REPORTABLE 

CORPORATE 

SEGMENTS 

US$M

& OTHER 

US$M

US$M

7,447

– 

(7,595)

(3,015)

3,085

(78)

(42)

2

(118)

(429)

300

140

(107)

145

(1)

– 

– 

(25)

– 

12

(2)

10

– 

10

US$M

8,047

12

(6,209)

(1,416)

629

1,063

(70)

4

997

(453)

144

522

1,210

205

(12)

– 

– 

– 

– 

– 

1,403

(331)

1,072

PACIFIC 

US$M

5,318

– 

(4,638)

(417)

232

495

(107)

56

444

(157)

16

248

551

99

(6)

2

(2)

– 

(2)

642

(203)

439

– 

20,812

12

(18,442)

(4,848)

3,946

1,480

(219)

62

1,323

(1,039)

460

910

1,654

449

(19)

2

(2)

(25)

(2)

2,057

(536)

1,521

– 

TOTAL 

US$M

20,826

– 

(18,421)

(4,848)

3,946

1,503

(250)

62

1,315

(1,039)

460

883

1,619

486

(232)

2

(2)

(25)

(11)

1,837

(473)

1,364

(9)

14

(12)

21

– 

– 

23

(31)

– 

(8)

– 

– 

(27)

(35)

37

(213)

– 

– 

– 

(9)

(220)

63

(157)

(9)

1,072

439

1,521

(166)

1,355

77

A
n
n
u
a
l

R
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p
o
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t
2
0
2
3

Q
B
E
I
n
s
u
r
a
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c
e
G
r
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1

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v

i
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w

2

O
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r
a
t
i

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g
a
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fi
n
a
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i
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v

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3

G
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a
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c
e

TOTAL 
US$M

18,904
– 
(17,579)
(3,850)
3,496
971
(286)
74
759
1,157
(120)

(501)
1,295
(272)
(245)
38
(7)
(106)
(27)
676
(81)
595

(8)

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

2022 (RESTATED)

Insurance revenue – external
Insurance revenue – internal
Insurance service expenses
Reinsurance expenses
Reinsurance income
Insurance service result
Other expenses
Other income
Insurance operating result
Insurance finance income
Reinsurance finance expenses
Investment (loss) income 
– policyholders’ funds 
Insurance profit (loss)
Investment loss – shareholders’ funds
Financing and other costs
Gain on sale of entities and businesses
Share of net loss of associates
Restructuring and related expenses
Amortisation and impairment of intangibles
Profit (loss) before income tax
Income tax (expense) credit
Profit (loss) after income tax
Net profit attributable to non-controlling 
interests
Net profit (loss) after income tax attributable 
to ordinary equity holders of the Company

Geographical analysis

NORTH AMERICA 
US$M

INTERNATIONAL 
US$M

AUSTRALIA 
PACIFIC 
US$M

TOTAL 
REPORTABLE 
SEGMENTS 
US$M

CORPORATE 
& OTHER 
US$M

7,170
– 
(6,711)
(2,735)
2,319
43
(54)
17
6
222
(2)

(81)
145
(64)
(1)
– 
– 
(51)
– 
29
(7)
22

– 

22

6,764
7
(6,498)
(832)
1,060
501
(62)
4
443
801
(89)

(422)
733
(185)
(2)
– 
– 
(21)
– 
525
(100)
425

– 

425

4,965
– 
(4,429)
(276)
157
417
(95)
45
367
134
(29)

(17)
455
(4)
(19)
– 
– 
(14)
(13)
405
(138)
267

– 

267

18,899
7
(17,638)
(3,843)
3,536
961
(211)
66
816
1,157
(120)

(520)
1,333
(253)
(22)
– 
– 
(86)
(13)
959
(245)
714

– 

5
(7)
59
(7)
(40)
10
(75)
8
(57)
– 
– 

19
(38)
(19)
(223)
38
(7)
(20)
(14)
(283)
164
(119)

(8)

714

(127)

587

North America is defined by reference to its geographical location and, as such, satisfies the requirements of a geographical 
analysis as well as an operating segment analysis.

Insurance revenue – external was $4,796 million (2022 $4,480 million) for Australia, the ultimate parent entity’s country of domicile, 
and was $2,572 million (2022 $2,335 million) for risks located in the United Kingdom. No other country within International or Australia 
Pacific is individually material in this respect.

’

Product analysis

QBE does not collect Group-wide revenue information by product and the cost to develop this information would be excessive. 
Insurance revenue by class of business is disclosed in note 4.2.

5

R
e
p
o
r
t

F

i

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a
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c
i
a
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6

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d
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i

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a
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m
a
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i

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n

 
 
 
 
 
 
 
 
 
 
 
 
 
78

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Overview

This section provides analysis and commentary on the Group’s underwriting activities. Underwriting, in simple terms, 
is the agreement by the insurer to assume insurance risk in return for a premium paid by the insured. The underwriter 
assesses the quality of the risk and prices it accordingly. 

2.1 

Insurance revenue 

Overview

Insurance revenue reflects the consideration the Group expects to be entitled to in exchange for providing insurance 
contract services. Insurance revenue mainly comprises premiums charged for providing insurance coverage, excluding 
any amounts that are repayable to policyholders in all circumstances (referred to as investment components) and taxes 
collected on behalf of third parties.

Contracts measured under the premium allocation approach
Insurance revenue from contracts measured under the premium allocation approach
Contracts measured under the general model
Insurance service expenses incurred in the period
Changes in risk adjustment 
Contractual service margin recognised in profit or loss
Amounts relating to changes in the liability for remaining coverage
Recovery of insurance acquisition cash flows
Insurance revenue from contracts measured under the general model
Insurance revenue

2023
US$M

20,637

101
16
54
171
18
189
20,826

RESTATED 
2022
US$M

18,700

88
12
86
186
18
204
18,904

How we account for the numbers

The measurement models applicable to measuring insurance and reinsurance contracts are described in note 2.2.1.

Insurance revenue under the premium allocation approach is an allocation of total expected premium to each period 
of coverage on the basis of the passage of time, or a pattern that reflects the expected timing of incurred insurance 
service expenses if the expected pattern of incidence of risk differs significantly from the passage of time.

For contracts measured under the general model, insurance revenue comprises:

• changes in the liability for remaining coverage (excluding the loss component) that relate to services provided in the 
period. The contractual service margin, which represents the unearned profit, is earned to insurance revenue based 
on a pattern of coverage units which reflects the provision of insurance services over the expected coverage period. 
The determination of the coverage units pattern is based on the quantity of benefits provided under the contracts 
in each period and includes consideration of amounts that can be validly claimed by policyholders if an insured event 
occurs, as well as expected lapses. The movement in the contractual service margin during the period is disclosed 
in note 2.2.3.

• the recovery of insurance acquisition cash flows, which is determined by allocating a portion of the premium that 

relates to recovering those cash flows on a straight line basis over the coverage period of the contracts.

78

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

This section provides analysis and commentary on the Group’s underwriting activities. Underwriting, in simple terms, 

is the agreement by the insurer to assume insurance risk in return for a premium paid by the insured. The underwriter 

assesses the quality of the risk and prices it accordingly. 

Overview

Overview

2.1 

Insurance revenue 

Insurance revenue reflects the consideration the Group expects to be entitled to in exchange for providing insurance 

contract services. Insurance revenue mainly comprises premiums charged for providing insurance coverage, excluding 

any amounts that are repayable to policyholders in all circumstances (referred to as investment components) and taxes 

collected on behalf of third parties.

Contracts measured under the premium allocation approach

Insurance revenue from contracts measured under the premium allocation approach

20,637

18,700

Contracts measured under the general model

Insurance service expenses incurred in the period

Changes in risk adjustment 

Contractual service margin recognised in profit or loss

Amounts relating to changes in the liability for remaining coverage

Recovery of insurance acquisition cash flows

Insurance revenue from contracts measured under the general model

Insurance revenue

2023

US$M

RESTATED 

2022

US$M

101

16

54

171

18

189

88

12

86

186

18

204

20,826

18,904

How we account for the numbers

The measurement models applicable to measuring insurance and reinsurance contracts are described in note 2.2.1.

Insurance revenue under the premium allocation approach is an allocation of total expected premium to each period 

of coverage on the basis of the passage of time, or a pattern that reflects the expected timing of incurred insurance 

service expenses if the expected pattern of incidence of risk differs significantly from the passage of time.

For contracts measured under the general model, insurance revenue comprises:

• changes in the liability for remaining coverage (excluding the loss component) that relate to services provided in the 

period. The contractual service margin, which represents the unearned profit, is earned to insurance revenue based 

on a pattern of coverage units which reflects the provision of insurance services over the expected coverage period. 

The determination of the coverage units pattern is based on the quantity of benefits provided under the contracts 

in each period and includes consideration of amounts that can be validly claimed by policyholders if an insured event 

occurs, as well as expected lapses. The movement in the contractual service margin during the period is disclosed 

in note 2.2.3.

• the recovery of insurance acquisition cash flows, which is determined by allocating a portion of the premium that 

relates to recovering those cash flows on a straight line basis over the coverage period of the contracts.

2. 

UNDERWRITING ACTIVITIES

2.2 

 Insurance and reinsurance contract assets and liabilities

Overview

Insurance contract liabilities represent the rights and obligations arising from insurance and reinsurance contracts 
issued, and comprise the following components:

• the liability for remaining coverage, being the obligation to provide future insurance services in relation to contracts 

in force at the balance date; and

• the liability for incurred claims, being the obligation to pay claims reported but not yet paid, IBNR and other incurred 

insurance service expenses such as claims handling costs.

Reinsurance contract assets represent the rights and obligations arising from reinsurance contracts held, and comprise 
the following components:

• the asset for remaining coverage, being the amounts that are expected to be recoverable from reinsurers in relation 

to future insured claims that have not yet been incurred; and

• recoveries of incurred claims, being the amounts that are expected to be recoverable from reinsurers in relation 

to claims that have been incurred on underlying contracts.

The Group’s insurance and reinsurance contracts are aggregated into portfolios, each comprising contracts that are 
of similar risks and managed together. Portfolios of insurance and reinsurance contracts issued that are assets are 
presented separately from those that are liabilities on the balance sheet. Similarly, portfolios of reinsurance contracts 
held that are assets are presented separately from those that are liabilities. There were no portfolios of insurance 
contracts issued that were assets or portfolios of reinsurance contracts held that were liabilities at the balance date and 
at 31 December 2022.

Insurance contract liabilities
Reinsurance contract assets
Net insurance contract liabilities (assets)

PREMIUM 
ALLOCATION 
APPROACH
US$M

27,003 
(5,819)
21,184

2023

GENERAL 
MODEL
US$M

564 
(2,215)
(1,651)

2022 (RESTATED)

PREMIUM 
ALLOCATION 
APPROACH
US$M

 25,503 
(6,248)
 19,255 

TOTAL
US$M

27,567 
(8,034)
19,533

GENERAL 
MODEL
US$M

 645 
(896)
(251)

TOTAL
US$M

 26,148 
(7,144)
 19,004 

How we account for the numbers

Insurance and reinsurance contracts must be measured using a general model, unless the contracts meet certain 
eligibility criteria, in which case they may be measured using a simplified approach known as the premium allocation 
approach. Contracts are eligible for the simplified approach if they have coverage periods of one year or less or if the 
liability for remaining coverage under that approach is not expected to materially differ from that under the general 
model. The Group applies the premium allocation approach to most of its insurance and reinsurance contracts on the 
basis that these eligibility requirements are met.

Critical accounting judgements and estimates

For contracts with coverage periods greater than one year, the Group’s assessment of eligibility for the premium 
allocation approach involves a qualitative consideration of contract features and, where applicable, modelling of the 
liability for remaining coverage under a range of reasonably expected scenarios. The following key assumptions and 
estimates are modelled:

• expected future cash flows and the risk adjustment as described in notes 2.2.1 and 2.2.4;

• pattern of coverage units used to determine the earning pattern of the contractual service margin, which includes 

consideration of the economic value of policyholders’ insurable interests and any contractual limits to amounts that 
can be claimed under the relevant insurance contracts; and

• expected variability in assumptions used, such as changes in discount rates.

79

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1

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v

i
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2

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p
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i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

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e
p
o
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t

D
i
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e
c
t
o
r
s

’

5

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t

F

i

n
a
n
c
i
a
l

6

i

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i

o
n
a
l

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a
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i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
80

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

2.2.1  Movement in the net carrying amounts

Insurance contract liabilities

2023

2022 (RESTATED)

LIABILITY (ASSET) FOR 
REMAINING COVERAGE

LIABILITY (ASSET) FOR 
REMAINING COVERAGE

EXCLUDING 
LOSS 
COMPONENT
US$M

LOSS 
COMPONENT
US$M

LIABILITY FOR 
INCURRED 
CLAIMS
US$M

EXCLUDING 
LOSS 
COMPONENT
US$M

LOSS 
COMPONENT
US$M

LIABILITY FOR 
INCURRED 
CLAIMS
US$M

TOTAL
US$M

TOTAL
US$M

(1,262)

112

27,298

26,148

– 

42

26,316

26,358

(314)

(20,512)
(20,826)

– 

– 
– 

– 

– 
– 

(314)

(554)

(20,512)
(20,826)

(18,350)
(18,904)

– 

– 
– 

– 

– 
– 

(554)

(18,350)
(18,904)

(68)

(112)

14,573 

14,393 

(92)

(42)

14,768

14,634

3,654 

3,333

92 

– 

3,654 

– 

– 
3,586 
(17,240)

19 
(51)

(17,272)
(71)
(3)

20,445 
(3,655)

– 
16,790 

– 

– 

86
(26)
(26)

– 
– 

(26)
– 
– 

– 
– 

– 
– 

– 

92 

– 
14,665 
14,665 

1,020 
393 

16,078 
71 
(8)

86
18,225 
(2,601)

1,039 
342 

(1,220)
– 
(11)

479
(77)

20,924 
(3,732)

(14,542)
(14,140)

(14,542)
2,650 

– 
3,241
(15,663)

(5)
(132)

(15,800)
(71)
– 

18,021
(3,412)

– 
14,609

– 

– 

115
73
73

– 
(3)

70
– 
– 

– 
– 

– 
– 

– 

3,333

(696)

(696)

– 
14,072
14,072

(1,152)
(1,178)

11,742
71
– 

451
(71)

(11,211)
(10,831)

115
17,386
(1,518)

(1,157)
(1,313)

(3,988)
– 
– 

18,472
(3,483)

(11,211)
3,778

(1,818)

86 

29,299 

27,567 

(1,262)

112

27,298 

26,148

Insurance contract liabilities 
at 1 January
Insurance revenue – contracts 
under the modified retrospective 
approach
Insurance revenue – other 
contracts
Insurance revenue (a)
Incurred claims and other 
attributable expenses
Amortisation of insurance 
acquisition cash flows
Changes that relate to past 
service – prior accident years
Losses on onerous contracts 
and reversals of those losses
Insurance service expenses (b)1 
Insurance service result (a)+(b)
Insurance finance expenses 
(income)
Foreign exchange
Statement of comprehensive 
income
Investment components
Disposals
Cash flows
Premium received
Acquisition costs paid
Claims and expenses, including 
taxes, paid
Total cash flows
Insurance contract liabilities 
at 31 December

1  Excludes $196 million (2022 $193 million) of insurance service expenses which represent movements in assets and liabilities that do not 

form part of insurance contract liabilities on the balance sheet. 

80

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

2.2.1  Movement in the net carrying amounts

Insurance contract liabilities

2023

2022 (RESTATED)

LIABILITY (ASSET) FOR 

REMAINING COVERAGE

EXCLUDING 

LOSS 

US$M

LIABILITY FOR 

INCURRED 

CLAIMS

LOSS 

US$M

COMPONENT

COMPONENT

TOTAL

COMPONENT

COMPONENT

US$M

US$M

US$M

LIABILITY (ASSET) FOR 

REMAINING COVERAGE

EXCLUDING 

LOSS 

LOSS 

US$M

LIABILITY FOR 

INCURRED 

CLAIMS

US$M

TOTAL

US$M

(1,262)

112

27,298

26,148

– 

42

26,316

26,358

(314)

(554)

(20,512)

(20,826)

(18,350)

(18,904)

– 

– 

– 

(554)

(18,350)

(18,904)

(68)

(112)

14,573 

14,393 

(92)

(42)

14,768

14,634

3,654 

3,333

– 

3,333

86

(26)

(26)

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

92 

– 

92 

86

1,020 

393 

1,039 

342 

71 

(8)

479

(77)

– 

(11)

20,924 

(3,732)

(14,542)

(14,140)

(14,542)

2,650 

– 

– 

(5)

(132)

(71)

– 

18,021

(3,412)

– 

14,609

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

115

73

73

– 

(3)

70

(696)

(696)

– 

14,072

14,072

(1,152)

(1,178)

71

– 

451

(71)

(11,211)

(10,831)

115

17,386

(1,518)

(1,157)

(1,313)

– 

– 

18,472

(3,483)

(11,211)

3,778

(17,272)

(26)

16,078 

(1,220)

(15,800)

11,742

(3,988)

Insurance contract liabilities 

at 1 January

Insurance revenue – contracts 

under the modified retrospective 

approach

contracts

Insurance revenue – other 

Insurance revenue (a)

Incurred claims and other 

attributable expenses

Amortisation of insurance 

acquisition cash flows

Changes that relate to past 

service – prior accident years

Losses on onerous contracts 

and reversals of those losses

Insurance finance expenses 

(income)

Foreign exchange

Statement of comprehensive 

income

Investment components

Disposals

Cash flows

Premium received

Acquisition costs paid

Claims and expenses, including 

taxes, paid

Total cash flows

Insurance contract liabilities 

at 31 December

(314)

(20,512)

(20,826)

3,654 

– 

– 

19 

(51)

(71)

(3)

20,445 

(3,655)

– 

16,790 

Insurance service expenses (b)1 

Insurance service result (a)+(b)

3,586 

(17,240)

14,665 

14,665 

18,225 

(2,601)

3,241

(15,663)

1  Excludes $196 million (2022 $193 million) of insurance service expenses which represent movements in assets and liabilities that do not 

form part of insurance contract liabilities on the balance sheet. 

(1,818)

86 

29,299 

27,567 

(1,262)

112

27,298 

26,148

Reinsurance contract assets

2023

2022 (RESTATED)

ASSET FOR REMAINING 
COVERAGE

EXCLUDING 
LOSS-
RECOVERY 
COMPONENT
US$M

LOSS-
RECOVERY 
COMPONENT
US$M

RECOVERIES 
OF INCURRED 
CLAIMS
US$M

ASSET FOR REMAINING 
COVERAGE

EXCLUDING 
LOSS-
RECOVERY 
COMPONENT
US$M

LOSS-
RECOVERY 
COMPONENT
US$M

RECOVERIES 
OF INCURRED 
CLAIMS
US$M

Reinsurance contract assets 
at 1 January
Reinsurance expenses (a)
Recovery of incurred claims 
and other expenses
Changes in credit risk
Changes that relate to past 
service – prior accident years
Recovery of onerous contract 
losses and reversals of those 
recoveries
Reinsurance income (b)
Insurance service result (a)+(b)
Reinsurance finance income 
(expense)
Foreign exchange
Statement of comprehensive 
income
Investment components
Disposals
Cash flows
Premium paid net of ceding 
commissions received¹
Recoveries and taxes received
Total cash flows

Reinsurance contract assets 
at 31 December

(1,629)
(4,848)

(25)
– 

– 

– 
(25)
(4,873)

110
(2)

(4,765)
(201)
– 

5,869
– 
5,869

(726)

6
– 

(6)
– 

– 

3
(3)
(3)

– 
– 

(3)
– 
– 

– 
– 
– 

3 

TOTAL
US$M

7,144
(4,848)

4,045
5

8,767
– 

4,076
5

(107)

(107) 

– 
3,974
3,974

350
74

4,398
201
(1)

3
3,946
(902)

460
72

(370)
– 
(1)

10
(4,618)
(4,608)

5,879
(4,618)
1,261

(1,031)
(3,850)

(46)
– 

– 

– 
(46)
(3,896)

(56)
40

(3,912)
(235)
– 

3,549
– 
3,549

8,757 

8,034 

(1,629)

TOTAL
US$M

6,713
(3,850)

3,731
6

7,740
– 

3,781
6

(247)

(247)

– 
3,540
3,540

(64)
(182)

3,294
235
– 

6
3,496
(354)

(120)
(142)

(616)
– 
– 

43
(2,545)
(2,502)

3,592
(2,545)
1,047

8,767

7,144

4
– 

(4)
– 

– 

6
2
2

– 
– 

2
– 
– 

– 
– 
– 

6

1  2022 includes amounts settled via the transfer of non-cash assets. 

How we account for the numbers

The asset or liability for remaining coverage under the premium allocation approach is measured as premiums received 
net of unamortised acquisition cash flows and amounts recognised as insurance revenue for coverage that has been 
provided. Insurance acquisition cash flows are amortised over the coverage period of the related insurance contracts 
on the same basis as the insurance revenue earning pattern (note 2.1) for the business to which the cash flows relate. 
The liability for remaining coverage is not discounted where the time between providing each part of the services and 
the related premium due date is no more than a year.

The asset or liability for remaining coverage under the general measurement model is measured as the sum of:

• the present value of future cash flows that are expected to arise as the Group fulfils the contracts, which mainly 

comprise premium, claims and attributable expenses;

• a risk adjustment for non-financial risk (note 2.2.4); and

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a
l

• a contractual service margin, representing the profit that has not yet been recognised in profit or loss as it relates 

to future services to be provided over the remaining coverage of the insurance contracts. 

The liability for remaining coverage includes a loss component which depicts amounts recognised on onerous contracts. 
A corresponding loss-recovery component within the reinsurance asset for remaining coverage depicts amounts 
recoverable in respect of losses on onerous contracts covered by reinsurance contracts held. 

n
f
o
r
m
a
t
i

o
n

Under both measurement models, the liability for incurred claims (and corresponding recoveries of incurred claims) 
is measured as the fulfilment cash flows (sum of present value of future cash flows and a risk adjustment) relating 
to incurred claims and attributable expenses that have not yet been paid, including claims that have been incurred 
but not yet reported.

 
 
 
 
 
 
 
 
 
 
 
 
 
82

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Critical accounting judgements and estimates

The determination of the amounts that the Group will ultimately pay for claims arising under insurance and reinsurance 
contracts issued involves a number of critical assumptions. Some of the uncertainties impacting these assumptions are 
as follows:

• changes in patterns of claims incidence, reporting and payment;

• volatility in the estimation of future costs for long-tail insurance classes due to the longer period of time that can elapse 

before a claim is paid in full;

• existence of complex underlying exposures;

• incidence of catastrophic events close to the balance date;

• changes in the legal environment, including the interpretation of liability laws and the quantum of damages; and

• changing social, environmental, political and economic trends, for example price and wage inflation. 

The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling 
claims that have been reported to the Group but are not yet paid, for which more information about claims is generally 
available. The notification and settlement of claims relating to liability and other long-tail classes of business may not 
happen for many years after the event giving rise to the claim. As a consequence, liability and other long-tail classes 
typically display greater variability between initial estimates and final settlement due to delays in reporting claims and 
uncertainty in respect of court awards and future claims inflation. Claims in respect of property and other short-tail 
classes are typically reported and settled soon after the claim event, typically giving rise to less uncertainty. 

Estimates of future cash flows for each class of business are determined using a variety of estimation techniques, 
generally based on an analysis of historical experience and with reference to external benchmarks where relevant. 
The cash flows are discounted to present value using appropriate discount rates as described in note 2.2.5.

Onerous contracts

Insurance contracts are onerous when the liability for remaining coverage is insufficient to pay future claims and other 
insurance service expenses attributable to the contracts.

Contracts that are measured using the premium allocation approach are assumed not to be onerous unless facts and 
circumstances indicate otherwise. In identifying facts and circumstances that may be indicators of onerous contracts, 
the Group considers management information for Group planning and performance management, in combination with 
other indicators where relevant. If there are facts and circumstances that may indicate the existence of possible onerous 
contracts, the onerous contract losses are measured based on the extent to which the fulfilment cash flows attributable 
to the group of contracts exceed the liability for remaining coverage for that group.

Under both measurement models, onerous contract losses are measured on a gross basis (excluding the effect 
of reinsurance contracts held) and are immediately recognised in profit or loss. A loss component of the liability 
for remaining coverage is established (or increased) to depict the onerous contract losses recognised. Where the 
onerous contracts are covered by reinsurance contracts held, reinsurance income is recognised in profit or loss and 
a corresponding loss-recovery component of the reinsurance asset for remaining coverage is established to depict 
expected recoveries attributable to the onerous contract losses.

The consideration of facts and circumstances as well as the measurement of any onerous contract losses are 
determined separately for each underwriting year within a portfolio of contracts that are of similar risks and managed 
together. Where a subset of contracts within a portfolio would be identified as a separate group from other contracts 
within the portfolio only because of the existence of specific legal or regulatory constraints to the Group’s practical ability 
to set a different price or level of benefits for policyholders with different characteristics, such contracts are included 
in the same group for the purposes of identifying and measuring onerous contracts.

82

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Critical accounting judgements and estimates

The determination of the amounts that the Group will ultimately pay for claims arising under insurance and reinsurance 

contracts issued involves a number of critical assumptions. Some of the uncertainties impacting these assumptions are 

• volatility in the estimation of future costs for long-tail insurance classes due to the longer period of time that can elapse 

as follows:

• changes in patterns of claims incidence, reporting and payment;

before a claim is paid in full;

• existence of complex underlying exposures;

• incidence of catastrophic events close to the balance date;

• changes in the legal environment, including the interpretation of liability laws and the quantum of damages; and

• changing social, environmental, political and economic trends, for example price and wage inflation. 

The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling 

claims that have been reported to the Group but are not yet paid, for which more information about claims is generally 

available. The notification and settlement of claims relating to liability and other long-tail classes of business may not 

happen for many years after the event giving rise to the claim. As a consequence, liability and other long-tail classes 

typically display greater variability between initial estimates and final settlement due to delays in reporting claims and 

uncertainty in respect of court awards and future claims inflation. Claims in respect of property and other short-tail 

classes are typically reported and settled soon after the claim event, typically giving rise to less uncertainty. 

Estimates of future cash flows for each class of business are determined using a variety of estimation techniques, 

generally based on an analysis of historical experience and with reference to external benchmarks where relevant. 

The cash flows are discounted to present value using appropriate discount rates as described in note 2.2.5.

Onerous contracts

Insurance contracts are onerous when the liability for remaining coverage is insufficient to pay future claims and other 

insurance service expenses attributable to the contracts.

Contracts that are measured using the premium allocation approach are assumed not to be onerous unless facts and 

circumstances indicate otherwise. In identifying facts and circumstances that may be indicators of onerous contracts, 

the Group considers management information for Group planning and performance management, in combination with 

other indicators where relevant. If there are facts and circumstances that may indicate the existence of possible onerous 

contracts, the onerous contract losses are measured based on the extent to which the fulfilment cash flows attributable 

to the group of contracts exceed the liability for remaining coverage for that group.

Under both measurement models, onerous contract losses are measured on a gross basis (excluding the effect 

of reinsurance contracts held) and are immediately recognised in profit or loss. A loss component of the liability 

for remaining coverage is established (or increased) to depict the onerous contract losses recognised. Where the 

onerous contracts are covered by reinsurance contracts held, reinsurance income is recognised in profit or loss and 

a corresponding loss-recovery component of the reinsurance asset for remaining coverage is established to depict 

expected recoveries attributable to the onerous contract losses.

The consideration of facts and circumstances as well as the measurement of any onerous contract losses are 

determined separately for each underwriting year within a portfolio of contracts that are of similar risks and managed 

together. Where a subset of contracts within a portfolio would be identified as a separate group from other contracts 

within the portfolio only because of the existence of specific legal or regulatory constraints to the Group’s practical ability 

to set a different price or level of benefits for policyholders with different characteristics, such contracts are included 

in the same group for the purposes of identifying and measuring onerous contracts.

83

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2.2.2  Movement in the net liability for incurred claims 

Net liability for incurred claims
Insurance contract liabilities
Reinsurance contract assets

PREMIUM 
ALLOCATION 
APPROACH
US$M

29,170
(8,635)
20,535

2023

GENERAL 
MODEL
US$M

129
(122)
7

2022 (RESTATED)

PREMIUM 
ALLOCATION 
APPROACH
US$M

GENERAL 
MODEL
US$M

27,152
(8,711)
18,441

146
(56)
90

TOTAL
US$M

29,299
(8,757)
20,542

1

O
v
e
r
v

i
e
w

TOTAL
US$M

27,298
(8,767)
18,531

2

fi
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a
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a
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d

The movement in the net liability for incurred claims for contracts measured under the premium allocation approach is analysed in the 
tables below:

Insurance contract liabilities

2023

2022 (RESTATED)

PRESENT VALUE 
OF FUTURE 
CASH FLOWS
US$M

RISK 
ADJUSTMENT
US$M

LIABILITY FOR 
INCURRED 
CLAIMS
US$M

PRESENT VALUE 
OF FUTURE 
CASH FLOWS
US$M

RISK 
ADJUSTMENT
US$M

LIABILITY FOR 
INCURRED 
CLAIMS
US$M

r
e
v

i
e
w

Insurance contract liabilities 
at 1 January
Incurred claims and other 
attributable expenses
Changes that relate to past service 
– prior accident years
Insurance service expenses
Insurance service result
Insurance finance expenses (income)
Foreign exchange
Statement of comprehensive 
income
Investment components
Disposals
Cash flows
Premium received
Acquisition costs paid
Claims and expenses, including taxes, 
paid
Total cash flows
Insurance contract liabilities 
at 31 December

25,376

1,776

27,152

14,210 

342 
14,552 
14,552 
980 
347 

15,879 
71 
(7)

470 
(77)

(14,525)
(14,132)

285 

14,495 

(163) 
122 
122 
40
46 

208 
– 
(1)

– 
– 

– 
– 

179 
14,674 
14,674 
1,020 
393 

16,087 
71 
(8)

470 
(77)

(14,525)
(14,132)

24,323

14,031

(112)
13,919
13,919
(1,033)
(1,089)

11,797
71
– 

435
(71)

(11,179)
(10,815)

1,766

26,089

662

(462)
200
200
(113)
(77)

10
– 
– 

– 
– 

– 
– 

14,693

(574)
14,119
14,119
(1,146)
(1,166)

11,807
71
– 

435
(71)

(11,179)
(10,815)

27,187 

1,983 

29,170 

25,376

1,776

27,152 

3

G
o
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a
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4

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’

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i

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6

i

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i

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a
l

n
f
o
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m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
 
84

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Reinsurance contract assets

Reinsurance contract assets 
at 1 January
Recovery of incurred claims and 
other expenses
Changes in credit risk
Changes that relate to past service 
– prior accident years
Reinsurance income
Insurance service result
Reinsurance finance income 
(expenses)
Foreign exchange
Statement of comprehensive 
income
Investment components
Disposals
Cash flows
Premium paid net of ceding 
commissions received
Recoveries and taxes received
Total cash flows
Reinsurance contract assets 
at 31 December

2023

2022 (RESTATED)

PRESENT VALUE 
OF FUTURE 
CASH FLOWS
US$M

RISK 
ADJUSTMENT
US$M

RECOVERIES 
OF INCURRED 
CLAIMS
US$M

PRESENT VALUE 
OF FUTURE 
CASH FLOWS
US$M

RISK 
ADJUSTMENT
US$M

RECOVERIES 
OF INCURRED 
CLAIMS
US$M

8,236

3,382 
5 

(103) 
3,284 
3,284 

351 
63 

3,698 
175 
(1)

10 
(3,969)
(3,959)

8,149 

475

1 
– 

(1) 
– 
– 

(1)
12 

11 
– 
– 

– 
– 
– 

8,711

3,383
5

(104) 
3,284 
3,284 

350 
75 

3,709 
175 
(1)

10 
(3,969)
(3,959)

486 

8,635 

7,206

3,424
6

10
3,440
3,440

(31)
(154)

3,255
127
– 

43
(2,395)
(2,352)

8,236

520

264
– 

(249)
15
15

(33)
(27)

(45)
– 
– 

– 
– 
– 

7,726

3,688
6

(239)
3,455
3,455

(64)
(181)

3,210
127
– 

43
(2,395)
(2,352)

475

8,711 

84

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Reinsurance contract assets

2023

2022 (RESTATED)

PRESENT VALUE 

OF FUTURE 

CASH FLOWS

US$M

ADJUSTMENT

RISK 

US$M

RECOVERIES 

OF INCURRED 

CLAIMS

US$M

PRESENT VALUE 

OF FUTURE 

CASH FLOWS

ADJUSTMENT

RISK 

US$M

RECOVERIES 

OF INCURRED 

CLAIMS

US$M

Reinsurance contract assets 

at 1 January

Recovery of incurred claims and 

other expenses

Changes in credit risk

Changes that relate to past service 

– prior accident years

Reinsurance income

Insurance service result

Reinsurance finance income 

(expenses)

Foreign exchange

Statement of comprehensive 

income

Investment components

Disposals

Cash flows

Premium paid net of ceding 

commissions received

Recoveries and taxes received

Total cash flows

Reinsurance contract assets 

at 31 December

8,236

3,382 

5 

(103) 

3,284 

3,284 

351 

63 

3,698 

175 

(1)

10 

(3,969)

(3,959)

8,149 

475

1 

– 

(1) 

– 

– 

(1)

12 

11 

– 

– 

– 

– 

– 

8,711

3,383

5

(104) 

3,284 

3,284 

350 

75 

3,709 

175 

(1)

10 

(3,969)

(3,959)

US$M

7,206

3,424

6

10

3,440

3,440

(31)

(154)

3,255

127

– 

43

(2,395)

(2,352)

8,236

520

264

– 

(249)

15

15

(33)

(27)

(45)

– 

– 

– 

– 

– 

7,726

3,688

6

(239)

3,455

3,455

(64)

(181)

3,210

127

– 

43

(2,395)

(2,352)

486 

8,635 

475

8,711 

2.2.3  Analysis of contracts measured under the general model

Insurance contract liabilities

2023

2022 (RESTATED)

PRESENT 
VALUE OF 
FUTURE 
CASH 
FLOWS
US$M

RISK 
ADJUSTMENT
US$M

CONTRACTUAL 
SERVICE MARGIN
US$M

TOTAL
US$M

PRESENT 
VALUE OF 
FUTURE 
CASH 
FLOWS
US$M

RISK 
ADJUSTMENT
US$M

CONTRACTUAL 
SERVICE MARGIN
US$M

TOTAL
US$M

340

68

237

645

419

78

308

805

– 
– 
(38)
(38)

(31)

54 
23 

(63)
(63)
(78)

14 
2 

(62)

107 
(17)

(17)
73 

351 

– 
3
– 
3 

7 

9
16 

(24)
(24)
(5)

2
– 

(3)

– 
– 

– 
– 

65 

(54)
– 
– 
(54)

24 

(63)
(39)

– 
– 
(93)

5 
(1)

(54)
3
(38)
(89)

– 

– 
– 

(87)
(87)
(176)

21 
1 

– 
– 
(31)
(31)

(73)

28
(45)

(97)
(97)
(173)

(17)
(26)

(89)

(154)

(216)

– 
– 

– 
– 

107
(17)

(17)
73 

148 

564 

181
(12)

(32)
137

340

– 
6
– 
6

11

7
18

(25)
(25)
(1)

(3)
(6)

(10)

– 
– 

– 
– 

(87)
– 
– 
(87)

62

(35)
27

– 
– 
(60)

7
(18)

(71)

– 
– 

– 
– 

(87)
6
(31)
(112)

– 

– 
– 

(122)
(122)
(234)

(13)
(50)

(297)

181
(12)

(32)
137

68

237 

645

Insurance contract liabilities 
at 1 January
Changes that relate to current 
service
Contractual service margin 
release for services provided
Changes in risk adjustment
Experience adjustments

Changes that relate to future 
service
Contracts initially recognised 
in the period
Changes that adjust the 
contractual service margin

Changes that relate to past 
service
Adjustments to liability for 
incurred claims

Insurance service result
Insurance finance expenses 
(income)
Foreign exchange
Statement of comprehensive 
income
Cash flows
Premium received
Acquisition costs paid
Claims and expenses, including 
taxes, paid
Total cash flows
Insurance contract liabilities 
at 31 December

85

A
n
n
u
a
l

R
e
p
o
r
t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
86

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Contracts initially recognised in the period 

The following table provides an analysis of contracts measured under the general model that were initially recognised in the period:

Insurance acquisition cash flows
Claims and other insurance service expenses payable
Estimates of the present value of future cash outflows
Estimates of the present value of future cash inflows
Risk adjustment
Contractual service margin
Movement in insurance contract liabilities

Contractual service margin by transition method

2023
US$M

15
45 
60 
(91)
7 
24 
– 

RESTATED
 2022
US$M

12
77
89
(162)
11
62
– 

The following table provides an analysis of contractual service margin by transition method applied to measure the contracts on adoption 
of AASB 17 (note 8.1.1):

2023

2022 (RESTATED)

CONTRACTS 
UNDER THE 
MODIFIED 
RETROSPECTIVE 
APPROACH
US$M

OTHER 
CONTRACTS
US$M

At 1 January
Changes that relate to current service
Contractual service margin release 
for services provided
Changes that relate to future service
Contracts initially recognised 
in the period
Changes in estimates that adjust the 
contractual service margin
Insurance service result
Insurance finance expenses 
Foreign exchange
Statement of comprehensive income
At 31 December

190 

(39)

– 

(56)
(95)
4 
(2)
(93)
97 

47 

(15)

24

(7)
2
1 
1 
4 
51 

CONTRACTS 
UNDER THE 
MODIFIED 
RETROSPECTIVE 
APPROACH
US$M

OTHER 
CONTRACTS
US$M

308

(75)

– 

(35)
(110)
7
(15)
(118)
190

– 

(12)

62

– 
50
– 
(3)
47
47

TOTAL
US$M

237 

(54)

24

(63)
(93)
5 
(1)
(89)
148 

TOTAL
US$M

308

(87)

62

(35)
(60)
7
(18)
(71)
237

87

A
n
n
u
a
l

R
e
p
o
r
t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

2023

2022 (RESTATED)

PRESENT 
VALUE OF 
FUTURE 
CASH 
FLOWS
US$M

RISK 
ADJUSTMENT
US$M

CONTRACTUAL 
SERVICE MARGIN
US$M

TOTAL
US$M

PRESENT 
VALUE OF 
FUTURE 
CASH 
FLOWS
US$M

RISK 
ADJUSTMENT
US$M

CONTRACTUAL 
SERVICE MARGIN
US$M

TOTAL
US$M

819

62

15

896

668

38

20

726

1

O
v
e
r
v

i
e
w

86

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Contracts initially recognised in the period 

The following table provides an analysis of contracts measured under the general model that were initially recognised in the period:

2023

US$M

15

45 

60 

(91)

7 

24 

– 

RESTATED

 2022

US$M

(162)

12

77

89

11

62

– 

Insurance acquisition cash flows

Claims and other insurance service expenses payable

Estimates of the present value of future cash outflows

Estimates of the present value of future cash inflows

Risk adjustment

Contractual service margin

Movement in insurance contract liabilities

Contractual service margin by transition method

of AASB 17 (note 8.1.1):

The following table provides an analysis of contractual service margin by transition method applied to measure the contracts on adoption 

2023

2022 (RESTATED)

CONTRACTS 

UNDER THE 

MODIFIED 

CONTRACTS 

UNDER THE 

MODIFIED 

RETROSPECTIVE 

APPROACH

OTHER 

CONTRACTS

US$M

190 

US$M

47 

TOTAL

US$M

237 

RETROSPECTIVE 

APPROACH

OTHER 

CONTRACTS

US$M

308

US$M

– 

TOTAL

US$M

308

(39)

– 

(56)

(95)

4 

(2)

(93)

97 

(15)

(54)

(75)

(12)

(87)

24

(7)

2

1 

1 

4 

51 

24

(63)

(93)

5 

(1)

(89)

148 

– 

(35)

(110)

7

(15)

(118)

190

62

– 

50

– 

(3)

47

47

62

(35)

(60)

7

(18)

(71)

237

At 1 January

Changes that relate to current service

Contractual service margin release 

for services provided

Changes that relate to future service

Contracts initially recognised 

in the period

Changes in estimates that adjust the 

contractual service margin

Insurance service result

Insurance finance expenses 

Foreign exchange

Statement of comprehensive income

At 31 December

Reinsurance contract assets

Reinsurance contract assets 
at 1 January
Changes that relate to current 
service
Contractual service margin 
release for services provided
Changes in risk adjustment
Experience adjustments

Changes that relate to future 
service
Contracts initially recognised 
in the period
Changes in estimates that 
do not adjust the contractual 
service margin
Changes that adjust the 
contractual service margin

Changes that relate to past 
service
Adjustments to recoveries 
of incurred claims

Insurance service result
Reinsurance finance income 
(expenses)
Foreign exchange
Statement of comprehensive 
income
Cash flows
Premium paid net of ceding 
commissions received¹
Recoveries received 
Total cash flows
Reinsurance contract assets 
at 31 December

– 
– 
(5)
(5)

– 
(69)
– 
(69)

(282)

156 

76 

15 
(191)

(3)
(3)
(199)

107 
51 

(41)

1,922 
(649)
1,273 

5

2 
163 

– 
– 
94 

4
1 

99 

– 
– 
– 

2,051 

161 

(2)
– 
– 
(2)

7 

– 

(17)
(10)

– 
– 
(12)

– 
– 

(12)

– 
– 
– 

3 

(2)
(69)
(5)
(76)

– 
– 
(16)
(16)

(119)

(94)

81

– 
(38)

(3)
(3)
(117)

111 
52 

46 

1,922
(649)
1,273 

14

6
(74)

(8)
(8)
(98)

(57)
(24)

(179)

480
(150)
330

2,215 

819

– 
(5)
– 
(5)

34

– 

1
35

– 
– 
30

(5)
(1)

24

– 
– 
– 

62

1  2022 includes amounts settled via the transfer of non-cash assets. 

2

fi
n
a
n
c
i
a
l

O
p
e
r
a
t
i

n
g
a
n
d

(5)
– 
– 
(5)

(5)
(5)
(16)
(26)

7

(53)

r
e
v

i
e
w

– 

(7)
– 

– 
– 
(5)

– 
– 

(5)

– 
– 
– 

14

– 
(39)

(8)
(8)
(73)

(62)
(25)

(160)

480
(150)
330

15 

896 

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
88

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

Contracts initially recognised in the period

The following table provides an analysis of contracts measured under the general model that were initially recognised in the period:

Estimates of the present value of future cash outflows
Estimates of the present value of future cash inflows
Risk adjustment
Contractual service margin
Movement in reinsurance contract assets

Contractual service margin by transition method

2023
US$M

(2,083)
1,801 
156 
7 
(119)

RESTATED 
2022
US$M

(138)
44
34
7
(53)

The following table provides an analysis of contractual service margin by transition method applied to measure the contracts 
on adoption of AASB 17 (note 8.1.1):

2023

2022 (RESTATED)

CONTRACTS 
UNDER THE 
MODIFIED 
RETROSPECTIVE 
APPROACH
US$M

OTHER 
CONTRACTS
US$M

At 1 January
Changes that relate to current service
Contractual service margin release for 
services provided
Changes that relate to future service
Contracts initially recognised 
in the period
Changes in estimates that adjust 
the contractual service margin
Insurance service result
Statement of comprehensive income
At 31 December

9 

– 

– 

(15)
(15)
(15)
(6)

6 

(2)

7

(2)
3
3 
9 

CONTRACTS 
UNDER THE 
MODIFIED 
RETROSPECTIVE 
APPROACH
US$M

OTHER 
CONTRACTS
US$M

20

(4)

– 

(7)
(11)
(11)
9

– 

(1)

7

– 
6
6
6

TOTAL
US$M

15 

(2)

7

(17)
(12)
(12)
3 

TOTAL
US$M

20

(5)

7

(7)
(5)
(5)
15

88

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

2023

US$M

(2,083)

1,801 

156 

7 

(119)

RESTATED 

2022

US$M

(138)

44

34

7

(53)

Estimates of the present value of future cash outflows

Estimates of the present value of future cash inflows

Risk adjustment

Contractual service margin

Movement in reinsurance contract assets

Contractual service margin by transition method

on adoption of AASB 17 (note 8.1.1):

The following table provides an analysis of contractual service margin by transition method applied to measure the contracts 

2023

2022 (RESTATED)

CONTRACTS 

UNDER THE 

MODIFIED 

RETROSPECTIVE 

APPROACH

US$M

OTHER 

CONTRACTS

US$M

CONTRACTS 

UNDER THE 

MODIFIED 

TOTAL

US$M

15 

RETROSPECTIVE 

APPROACH

OTHER 

CONTRACTS

US$M

20

US$M

– 

TOTAL

US$M

20

At 1 January

Changes that relate to current service

Contractual service margin release for 

services provided

Changes that relate to future service

Contracts initially recognised 

in the period

Changes in estimates that adjust 

the contractual service margin

Insurance service result

Statement of comprehensive income

At 31 December

9 

– 

– 

(15)

(15)

(15)

(6)

6 

(2)

7

(2)

3

3 

9 

(2)

7

(17)

(12)

(12)

3 

(4)

– 

(7)

(11)

(11)

9

(1)

7

– 

6

6

6

(5)

7

(7)

(5)

(5)

15

2. 

UNDERWRITING ACTIVITIES

Contracts initially recognised in the period

The following table provides an analysis of contracts measured under the general model that were initially recognised in the period:

2.2.4  Risk adjustment
The risk adjustment recognised in relation to the liability for incurred claims (net of reinsurance held) corresponds to a confidence 
level of 90.0% (2022 90.1%). The net liability for incurred claims excludes recoveries under reinsurance loss portfolio transfer 
contracts that are accounted for under the general model and recognised within the reinsurance asset for remaining coverage as they 
relate to underlying claims that have not yet been settled. The confidence level inclusive of these recoveries is 90.6% (2022 90.0%).

How we account for the numbers

The risk adjustment reflects the compensation required for bearing uncertainty about the amount and timing of cash 
flows that arises from non-financial risk. For contracts measured under the premium allocation approach, unless the 
contracts are onerous, an explicit risk adjustment for non-financial risk is only estimated for the measurement of the 
liability for incurred claims.

The risk adjustment recognised in relation to the liability for incurred claims is determined with reference to QBE’s 
weighted average cost of economic capital allocated to earned reserve risk. The risk adjustment also reflects the benefit 
from the diversification of the classes and geographies of the Group. The Group aims to maintain a risk adjustment 
within a range of 6% to 8% of the net present value of future cash flows in relation to the net outstanding claims liability 
(being claims reserves within the liability for incurred claims) inclusive of recoveries from reinsurance loss portfolio 
transfer contracts.

Changes in the risk adjustment are disaggregated between the insurance service result and insurance and reinsurance 
finance income and expenses.

Critical accounting judgements and estimates

The risk adjustment is approved by the Board and represents the compensation QBE requires for bearing the uncertainty 
in the net discounted estimate of future cash flows within the insurance liabilities. The determination of the appropriate 
level of risk adjustment takes into account:

• the level of economic capital that QBE allocates to support the net discounted cash flows and the weighted average 

cost of servicing that capital;

• the run-off profile and term to settlement of the net discounted cash flows;

• mix of business, in particular the mix of short-tail and long-tail business;

89

A
n
n
u
a
l

R
e
p
o
r
t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

• the benefit of diversification between classes of business and geographic locations; and

’

• the level of uncertainty in the cash flow estimates due to estimation error, data quality, variability of key inflation 

assumptions, and possible economic and legislative changes.

The uncertainty by class of business is measured using techniques that determine a range of possible outcomes 
of ultimate payments and assign a likelihood to outcomes at different levels. These techniques generally use standard 
statistical distributions, and the measure of variability is referred to as the coefficient of variation.

The coefficient of variation for two or more classes of business or for two or more geographic locations combined 
is likely to be less than the coefficients of variation for the individual classes, reflecting the benefit of diversification 
in general insurance. The statistical measure used to determine diversification is called the correlation; the higher the 
correlation between two classes of business, the more likely it is that a negative outcome in one class will correspond 
to a negative outcome in the other class. For example, higher correlation exists between classes of business affected 
by court cases involving bodily injury claims such as motor third-party liability, workers’ compensation and public liability, 
particularly in the same jurisdiction.

The confidence level for the Group is determined by analysing the variability of each class of business and the 
correlation between classes of business and divisions. Correlations are determined for aggregations of classes 
of business, where appropriate, at the divisional level. The correlations adopted by the Group are generally derived 
from industry analysis, the Group’s historical experience and the judgement of experienced and qualified actuaries. 
The net present value of future cash flows used in the determination of the confidence level is discounted using 
risk-free rates.

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
90

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

2.2.5  Discount rates used to estimate the present value of future cash flows

Overview

Claims in relation to long-tail classes of business (e.g. professional indemnity and workers’ compensation) typically 
may not settle for many years. As such, the liability is discounted to reflect the time value of money. The table below 
summarises the yield curves used to discount estimates of future cash flows within the net insurance contract liabilities.

New Zealand dollar
US dollar
Canadian dollar
Sterling
Hong Kong dollar
Australian dollar
Euro

2023

2022 (RESTATED)

1 YEAR

5 YEARS

10 YEARS

1 YEAR

5 YEARS

10 YEARS

5.79
5.55
5.19
5.18
4.58
4.53
3.84

4.51
4.23
3.46
3.68
3.46
3.95
2.21

4.70
4.20
3.42
3.92
3.55
4.29
2.34

5.77 
5.14
4.84
3.51
4.30
3.58
2.41 

5.02 
4.43
3.73
3.90
4.09
4.00
2.77 

4.84 
4.26
3.64
4.01
4.00
4.41
2.86 

How we account for the numbers

AASB 17 Insurance Contracts requires the estimates of future cash flows to be discounted to reflect the time value 
of money and financial risks related to those cash flows. A bottom-up approach is applied to determine the discount 
rates used to discount insurance and reinsurance contract cash flows, which uses risk-free rates adjusted to reflect 
the liquidity characteristics of the insurance contracts.

Critical accounting judgements and estimates

The illiquidity premium within discount rates is derived based on the long-term weighted average credit spread 
of a reference portfolio of assets with a similar currency mix and weighted average duration as the related 
insurance liabilities over the longer term. The effect of credit risk and other factors that are not relevant to the 
liquidity characteristics of insurance contracts is eliminated to estimate the portion of the spread that reflects the 
illiquidity premium.

 
90

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

2.2.6  Maturity profile of the net insurance contract liabilities

2.2.5  Discount rates used to estimate the present value of future cash flows

Overview

Overview

Claims in relation to long-tail classes of business (e.g. professional indemnity and workers’ compensation) typically 

may not settle for many years. As such, the liability is discounted to reflect the time value of money. The table below 

summarises the yield curves used to discount estimates of future cash flows within the net insurance contract liabilities.

2023

2022 (RESTATED)

1 YEAR

5 YEARS

10 YEARS

5 YEARS

10 YEARS

New Zealand dollar

US dollar

Canadian dollar

Sterling

Hong Kong dollar

Australian dollar

Euro

5.79

5.55

5.19

5.18

4.58

4.53

3.84

4.51

4.23

3.46

3.68

3.46

3.95

2.21

4.70

4.20

3.42

3.92

3.55

4.29

2.34

1 YEAR

5.77 

5.14

4.84

3.51

4.30

3.58

2.41 

5.02 

4.43

3.73

3.90

4.09

4.00

2.77 

4.84 

4.26

3.64

4.01

4.00

4.41

2.86 

How we account for the numbers

AASB 17 Insurance Contracts requires the estimates of future cash flows to be discounted to reflect the time value 

of money and financial risks related to those cash flows. A bottom-up approach is applied to determine the discount 

rates used to discount insurance and reinsurance contract cash flows, which uses risk-free rates adjusted to reflect 

the liquidity characteristics of the insurance contracts.

Critical accounting judgements and estimates

The illiquidity premium within discount rates is derived based on the long-term weighted average credit spread 

of a reference portfolio of assets with a similar currency mix and weighted average duration as the related 

insurance liabilities over the longer term. The effect of credit risk and other factors that are not relevant to the 

liquidity characteristics of insurance contracts is eliminated to estimate the portion of the spread that reflects the 

illiquidity premium.

The maturity profiles below set out the Group’s expectation of the period over which the cash flows arising from 
insurance and reinsurance contracts will be settled and the period over which the contractual service margin 
of contracts applying the general model is expected to be released to profit or loss. The Group uses information 
about the maturity profile of the present value of future cash flows to ensure that it has adequate liquidity to pay 
claims and expenses as they are due to be settled and to inform the Group’s investment strategy.

Expected timing of settlement of the present value of future cash flows
The following table summarises the expected maturity profile of the present value of future cash flows within the Group’s insurance 
and reinsurance contract assets and liabilities. The net liability for remaining coverage of contracts measured under the premium 
allocation approach is excluded from the below.

2023

Insurance contract liabilities
Reinsurance contract assets

2022 (RESTATED)

Insurance contract liabilities
Reinsurance contract assets

1 YEAR OR 
LESS
US$M

12,656 
5,707 

1 YEAR OR 
LESS
US$M

12,330 
5,577 

13 TO 24 
MONTHS
US$M

4,419 
1,368 

13 TO 24 
MONTHS
US$M

4,170 
1,182 

25 TO 36 
MONTHS
US$M

2,985 
917 

25 TO 36 
MONTHS
US$M

2,748 
731 

37 TO 48 
MONTHS
US$M

2,098 
689 

37 TO 48 
MONTHS
US$M

1,905 
481 

49 TO 60 
MONTHS OVER 5 YEARS
US$M

US$M

1,499 
429 

3,881 
1,090 

49 TO 60 
MONTHS OVER 5 YEARS
US$M

US$M

1,303 
402 

3,260 
682 

TOTAL
US$M

27,538 
10,200 

TOTAL
US$M

25,716 
9,055 

There were no amounts payable on demand at the balance date (2022 nil).

Expected timing of contractual service margin release 
The following table sets out when the Group expects to recognise the remaining contractual service margin in profit or loss:

2023

1 YEAR OR 
LESS
US$M

2 TO 5    
YEARS
US$M

MORE THAN 
5 YEARS
US$M

Insurance contract liabilities
Reinsurance contract assets

39 
(2)

79 
3 

30 
2 

1 YEAR OR 
LESS
US$M

2022 (RESTATED)

2 TO 5  
YEARS
US$M

MORE THAN 
5 YEARS
US$M

62 
3 

127 
9 

48 
3 

TOTAL
US$M

148 
3 

TOTAL
US$M

237 
15 

91

A
n
n
u
a
l

R
e
p
o
r
t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
 
92

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

2.2.7 

Impact of changes in key variables on the net insurance contract liabilities

Overview

The impact of changes in key variables used in the calculation of the net insurance contract liabilities is summarised 
in the table below, and is shown gross and net of reinsurance held. Each change has been calculated in isolation from 
the other changes and shows the after-tax impact on profit or loss assuming that there is no change to any of the other 
variables. In practice, this is considered unlikely to occur as, for example, an increase in interest rates is normally 
associated with an increase in the rate of inflation. Over the medium to longer term, the impact of a change in discount 
rates is expected to be, at least partly, offset by the impact of a change in the rate of inflation.

The sensitivities below assume that all changes directly impact profit after tax. In practice, if the present value of future 
cash flows was to increase, it is possible that part of the increase may result in an offsetting change in the level of risk 
adjustment required rather than in a change to profit or loss after tax, depending on the nature of the change in the cash 
flow estimate and risk outlook.

Present value of future cash flows

Risk adjustment

Inflation rate

Discount rate 2

Weighted average term to settlement

PROFIT (LOSS)1

GROSS

NET

2023
US$M

(895)
895
(70)
70
(524)
486
462
(507)
197
(200)

RESTATED
2022
US$M

(852)
852
(63)
63
(475)
443
422
(461)
185
(187)

2023
US$M

(635)
635
(48)
48
(395)
366
348
(383)
145
(147)

RESTATED
2022
US$M

(620)
620
(45)
45
(375)
348
334
(365)
143
(144)

SENSITIVITY
%

+5
-5
+5
-5
+1
-1
+1
-1
+10
-10

1  Net of tax at the Group’s prima facie income tax rate of 30%.
2  The impact of reasonably possible changes in interest rates on interest-bearing financial assets owned by the Group at the balance date 

is shown in note 4.4.

92

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

2.2.7 

Impact of changes in key variables on the net insurance contract liabilities

Overview

The impact of changes in key variables used in the calculation of the net insurance contract liabilities is summarised 

in the table below, and is shown gross and net of reinsurance held. Each change has been calculated in isolation from 

the other changes and shows the after-tax impact on profit or loss assuming that there is no change to any of the other 

variables. In practice, this is considered unlikely to occur as, for example, an increase in interest rates is normally 

associated with an increase in the rate of inflation. Over the medium to longer term, the impact of a change in discount 

rates is expected to be, at least partly, offset by the impact of a change in the rate of inflation.

The sensitivities below assume that all changes directly impact profit after tax. In practice, if the present value of future 

cash flows was to increase, it is possible that part of the increase may result in an offsetting change in the level of risk 

adjustment required rather than in a change to profit or loss after tax, depending on the nature of the change in the cash 

flow estimate and risk outlook.

Present value of future cash flows

Risk adjustment

Inflation rate

Discount rate 2

Weighted average term to settlement

PROFIT (LOSS)1

GROSS

NET

SENSITIVITY

RESTATED

2022

US$M

RESTATED

2022

US$M

%

+5

-5

+5

-5

+1

-1

+1

-1

+10

-10

2023

US$M

(895)

895

(70)

70

(524)

486

462

(507)

197

(200)

(852)

852

(63)

63

(475)

443

422

(461)

185

(187)

2023

US$M

(635)

635

(48)

48

(395)

366

348

(383)

145

(147)

(620)

620

(45)

45

(375)

348

334

(365)

143

(144)

1  Net of tax at the Group’s prima facie income tax rate of 30%.

2  The impact of reasonably possible changes in interest rates on interest-bearing financial assets owned by the Group at the balance date 

is shown in note 4.4.

2.3 

Claims development – net liability for incurred claims

Overview

The claims development table demonstrates the extent to which the original estimate of net ultimate claims payments 
in any one accident year (item (a) in the table below) has subsequently developed favourably (i.e. claims cost 
estimates have reduced) or unfavourably (i.e. further claims expense has been recognised in subsequent years). 
This table therefore illustrates the variability and inherent uncertainty in estimating the expected claims cash flows 
each year. The ultimate claims cost for any particular accident year is not known until all claims payments have been 
made which, for some long-tail classes of business, could be many years into the future. The estimate of net ultimate 
claims payments at the end of each subsequent accident year demonstrates how the original estimate has been 
revised over time (b).

Cumulative net claims payments (d) are deducted from the estimate of net ultimate claims payments in each accident 
year (c) at the current balance date, resulting in the undiscounted claims estimate at a fixed rate of exchange (e). 
This is revalued to the balance date rate of exchange (f) to report the net undiscounted claims estimate (g), which 
is reconciled to the net liability for incurred claims (h). The treatment of foreign exchange in the claims development 
table is explained on the following page.

The net increase (decrease) in estimated net ultimate claims payments (i) reflects the estimated ultimate net claims 
payments at the end of the current financial year (c) less the equivalent at the end of the previous financial year (b).

The claims development table is presented net of reinsurance. With insurance operations in 27 countries, hundreds 
of products, various reinsurance arrangements and with the Group’s risk tolerance managed on a consolidated basis, 
it is considered neither meaningful nor practicable to provide this information other than on a consolidated Group basis.

93

A
n
n
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a
l

R
e
p
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r
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2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

Net ultimate claims payments
(a) Original estimate of net ultimate claims payments
(b) One year later
Two years later
Three years later
Four years later

(c) Current estimate of net ultimate claims payments
(d) Cumulative net payments to date
(e) Net undiscounted claims estimate at fixed rate of 

(f)

exchange
Foreign exchange impact
Provision for impairment

(g) Net undiscounted claims estimate at 31 December 2023

Discount to present value
Other attributable cash flows
Risk adjustment

(h) Net liability for incurred claims at 31 December 2023 

(note 2.2.2)

2018 & 
PRIOR
US$M

2019
US$M

2020
US$M

2021
US$M

2022
US$M

2023
US$M

TOTAL
US$M

7,199
7,469
7,695
7,748
7,815
7,815
(6,474)

7,170
6,925
7,012
6,930

7,707
7,872
7,843

9,224
9,511

9,550

6,930
(5,185)

7,843
(5,341)

9,511
(5,443)

9,550
(2,401)

41,649
(24,844)

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

4,010

1,341

1,745

2,502

4,068

7,149

20,815
(29)
20
20,806
(2,421)
637
1,520

20,542
9,935

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

(i) Movement in estimated net ultimate claims payments

142

67

(82)

(29)

287

9,550

 
 
 
 
 
 
 
 
 
 
 
 
 
94

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. 

UNDERWRITING ACTIVITIES

How we account for the numbers

The estimate of net ultimate claims payments attributable to business acquired that apply the modified retrospective 
transition approach (note 8.1.1) is included in the claims development table in the accident year in which the acquisition 
was made. Information about claims development has been disclosed for the five accident years preceding the end 
of the current reporting period as permitted by AASB 17.

The Group writes business in many currencies. The translation of estimated net ultimate claims payments denominated 
in foreign currencies gives rise to foreign exchange movements which have no direct bearing on the development of the 
underlying claims. To eliminate this distortion, estimated net ultimate claims payments have been translated to the 
functional currencies of our controlled entities at constant rates of exchange. All estimates of ultimate claims payments 
for the accident years reported that are in functional currencies other than US dollars have been translated to US dollars 
using 2023 average rates of exchange.

2.3.1  Reinsurance of prior accident year claims liabilities
During 2023, the Group entered into a reserve transaction to reinsure certain prior accident year claims liabilities in North America and 
International which resulted in the recognition of an upfront net cost of $101 million within reinsurance expenses. Reinsurance expenses 
also include $620 million (2022 $87 million) relating to this transaction and reinsurance loss portfolio transfer contracts entered into 
in prior periods that remain in-force, reflecting amounts recognised over the coverage period as the underlying claims settle.

94

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

How we account for the numbers

The estimate of net ultimate claims payments attributable to business acquired that apply the modified retrospective 

transition approach (note 8.1.1) is included in the claims development table in the accident year in which the acquisition 

was made. Information about claims development has been disclosed for the five accident years preceding the end 

of the current reporting period as permitted by AASB 17.

The Group writes business in many currencies. The translation of estimated net ultimate claims payments denominated 

in foreign currencies gives rise to foreign exchange movements which have no direct bearing on the development of the 

underlying claims. To eliminate this distortion, estimated net ultimate claims payments have been translated to the 

functional currencies of our controlled entities at constant rates of exchange. All estimates of ultimate claims payments 

for the accident years reported that are in functional currencies other than US dollars have been translated to US dollars 

using 2023 average rates of exchange.

2.3.1  Reinsurance of prior accident year claims liabilities

During 2023, the Group entered into a reserve transaction to reinsure certain prior accident year claims liabilities in North America and 

International which resulted in the recognition of an upfront net cost of $101 million within reinsurance expenses. Reinsurance expenses 

also include $620 million (2022 $87 million) relating to this transaction and reinsurance loss portfolio transfer contracts entered into 

in prior periods that remain in-force, reflecting amounts recognised over the coverage period as the underlying claims settle.

2. 

UNDERWRITING ACTIVITIES

3. 

INVESTMENT ACTIVITIES

Overview

Premiums collected from policyholders are invested to meet the Group’s cash flow needs to pay claims and other 
expenses, as well as generating a return that contributes to the Group’s profitability. A sound investment strategy 
is therefore integral to the success of the Group’s operations.

The Group invests across a diversified range of instruments to achieve an appropriate balance between risk and return. 
Decisions on where to invest are dependent on expected returns, cash flow requirements of the Group, liquidity of the 
instrument, credit quality of the instrument and the overall risk appetite of the Group. Further details on the management 
of risk associated with investment assets can be found in note 4. 

95

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a
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R
e
p
o
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t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

fi
n
a
n
c
i
a
l

O
p
e
r
a
t
i

n
g
a
n
d

3.1 

Investment income

r
e
v

i
e
w

Income (loss) on fixed interest securities, short-term money and cash
Income on growth assets
Gross investment income (loss)1
Investment expenses
Net investment income (loss)
Foreign exchange
Other expenses
Total investment income (loss)
Investment income (loss) – policyholders’ funds
Investment expenses – policyholders’ funds
Investment income (loss) – shareholders’ funds
Investment expenses – shareholders’ funds
Total investment income (loss)

2023
US$M

1,361
71
1,432
(37)
1,395
(19)
(7)
1,369
907
(24)
499
(13)
1,369

RESTATED 
2022
US$M

(812)
60
(752)
(29)
(781)
18
(10)
(773)
(482)
(19)
(262)
(10)
(773)

1  Includes net fair value gains of $631 million (2022 $1,295 million losses), interest income of $739 million (2022 $466 million) and dividend 

and distribution income of $62 million (2022 $77 million).

How we account for the numbers

Interest income is recognised in the period in which it is earned. Dividends and distribution income are recognised 
when the right to receive payment is established. Investment income includes realised and unrealised gains or losses 
on financial assets which are reported on a combined basis as fair value gains or losses on financial assets. 

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
96

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. 

INVESTMENT ACTIVITIES

3.2 

Investments

Fixed income assets
Short-term money
Government bonds
Corporate bonds
Infrastructure debt
Emerging market debt
High yield debt
Private credit

Growth assets
Developed market equity
Emerging market equity
Unlisted property trusts
Infrastructure assets 
Alternatives

Total investments
Amounts maturing within 12 months
Amounts maturing in greater than 12 months
Total investments

2023
US$M

6,728
6,325
12,030
50
565
612
194
26,504

464
– 
585
928
189
2,166
28,670
11,386
17,284
28,670

2022
US$M

5,396
5,094
13,649
47
429
416
113
25,144

332
62
747
834
180
2,155
27,299
11,032
16,267
27,299

At 31 December 2023, QBE had undrawn commitments to externally managed investment vehicles of $645 million (2022 $237 million).

How we account for the numbers

The Group's investments are required to be measured at fair value through profit or loss, with all investments managed 
and assessed on a fair value basis to optimise returns within risk appetites and investment strategy parameters and 
limits. They are therefore initially recognised at fair value, determined as the cost of acquisition excluding transaction 
costs, and are remeasured to fair value through profit or loss at each reporting date. The fair value hierarchy and the 
Group’s approach to measuring the fair value of each category of investment instrument are disclosed in note 3.2.1.

All purchases and sales of investments that require delivery of the asset within the time frame established by regulation 
or market convention are recognised at trade date, being the date on which the Group commits to buy or sell the asset. 
Investments are de-recognised when the right to receive future cash flows from the asset has expired or has been 
transferred along with substantially all the risks and rewards of ownership.

96

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

3. 

INVESTMENT ACTIVITIES

3.2 

Investments

Fixed income assets

Short-term money

Government bonds

Corporate bonds

Infrastructure debt

Emerging market debt

High yield debt

Private credit

Growth assets

Developed market equity

Emerging market equity

Unlisted property trusts

Infrastructure assets 

Alternatives

Total investments

Amounts maturing within 12 months

Amounts maturing in greater than 12 months

Total investments

26,504

25,144

2023

US$M

6,728

6,325

12,030

50

565

612

194

464

– 

585

928

189

2,166

28,670

11,386

17,284

28,670

2022

US$M

5,396

5,094

13,649

47

429

416

113

332

62

747

834

180

2,155

27,299

11,032

16,267

27,299

At 31 December 2023, QBE had undrawn commitments to externally managed investment vehicles of $645 million (2022 $237 million).

How we account for the numbers

The Group's investments are required to be measured at fair value through profit or loss, with all investments managed 

and assessed on a fair value basis to optimise returns within risk appetites and investment strategy parameters and 

limits. They are therefore initially recognised at fair value, determined as the cost of acquisition excluding transaction 

costs, and are remeasured to fair value through profit or loss at each reporting date. The fair value hierarchy and the 

Group’s approach to measuring the fair value of each category of investment instrument are disclosed in note 3.2.1.

All purchases and sales of investments that require delivery of the asset within the time frame established by regulation 

or market convention are recognised at trade date, being the date on which the Group commits to buy or sell the asset. 

Investments are de-recognised when the right to receive future cash flows from the asset has expired or has been 

transferred along with substantially all the risks and rewards of ownership.

3.2.1 

Fair value hierarchy

Overview

The Group Revaluation Committee is responsible for the governance and oversight of the valuation process. The fair 
value of investments is determined in accordance with the Group’s investment valuation policy.

The investments of the Group are disclosed in the table below using a fair value hierarchy which reflects the significance 
of inputs into the determination of fair value as follows:

Level 1: Valuation is based on quoted prices in active markets for identical instruments.

Level 2: Valuation is based on quoted prices for identical instruments in markets which are not active, quoted prices 
for similar instruments, or valuation techniques for which all significant inputs are based on observable market data, 
for example, consensus pricing using broker quotes or valuation models with observable inputs.

Level 3: Valuation techniques are applied in which one or more significant inputs are not based on observable market data.

Fixed income assets
Short-term money
Government bonds
Corporate bonds
Infrastructure debt
Emerging market debt
High yield debt
Private credit

Growth assets
Developed market equity
Emerging market equity
Unlisted property trusts
Infrastructure assets 
Alternatives

Total investments

2023

2022

LEVEL 1
US$M

LEVEL 2
US$M

LEVEL 3
US$M

TOTAL
US$M

LEVEL 1
US$M

LEVEL 2
US$M

LEVEL 3
US$M

TOTAL
US$M

222
4,943
– 
– 
– 
– 
– 
5,165

464
– 
– 
– 
118
582
5,747

6,506
1,382
12,030
– 
565
612
– 
21,095

– 
– 
– 
– 
– 
– 
21,095

– 
– 
– 
50
– 
– 
194
244

– 
– 
585
928
71
1,584
1,828

6,728
6,325
12,030
50
565
612
194
26,504

464
– 
585
928
189
2,166
28,670

326
3,547
– 
– 
– 
– 
– 
3,873

332
62
– 
– 
112
506
4,379

5,070
1,547
13,649
– 
429
416
– 
21,111

– 
– 
– 
– 
– 
– 
21,111

– 
– 
– 
47
– 
– 
113
160

– 
– 
747
834
68
1,649
1,809

5,396
5,094
13,649
47
429
416
113
25,144

332
62
747
834
180
2,155
27,299

The Group’s approach to measuring the fair value of investments is described below: 

Short‑term money

Cash managed as part of the investment portfolio is categorised as level 1 in the fair value hierarchy. Term deposits are valued at par. 
Other short-term money (bank bills, certificates of deposit, treasury bills and other short-term instruments) is priced using interest 
rates and yield curves observable at commonly quoted intervals. 

Government bonds, corporate bonds, emerging market debt and high yield debt

These assets are valued based on quoted prices sourced from external data providers. The fair value categorisation of these assets 
is based on the observability of the inputs. 

Infrastructure debt

Infrastructure debt is priced by external data providers where quoted prices are available or by the external fund manager who may 
use a combination of observable market prices or comparable prices where available and other valuation techniques. When valuation 
techniques require the use of significant unobservable inputs, these assets have been categorised as level 3.

Private credit 

These assets comprise investments in fund vehicles that are valued using current unit prices as advised by the investment fund 
manager. As the valuation techniques require the use of significant unobservable inputs, these assets have been categorised as level 3. 

97

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98

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. 

INVESTMENT ACTIVITIES

Developed market equity and emerging market equity

These assets mainly comprise listed equities traded in active markets valued by reference to quoted prices. 

Unlisted property trusts and infrastructure assets

These assets are valued using current unit prices as advised by the responsible entity, trustee or equivalent of the investment management 
scheme. As the valuation techniques require the use of significant unobservable inputs, these assets have been categorised as level 3.

Alternatives

These assets mainly comprise investments in exchange-traded commodity products that are listed, traded in active markets and 
valued by reference to quoted prices. Alternatives also includes strategic unlisted investments which are valued based on other 
valuation techniques utilising significant unobservable inputs.

Movements in level 3 investments

The following table provides an analysis of investments valued with reference to level 3 inputs:

LEVEL 3

At 1 January
Purchases
Disposals
Fair value movement recognised in profit or loss
Foreign exchange
At 31 December

2023
US$M

1,809
157
(137)
(17)
16
1,828

2022
US$M

1,697
200
(98)
70
(60)
1,809

3.2.2  Charges over investments and restrictions on use
A controlled entity has given fixed and floating charges over certain of its investments and other assets in order to secure the obligations 
of the Group’s corporate members at Lloyd’s as described in note 8.2.

Included in investments are amounts totalling $4,053 million (2022 $3,538 million) which are held in Lloyd’s syndicate trust funds. 
In order to conduct underwriting business within some territories, Lloyd’s syndicates are required to lodge assets in locally regulated 
trust funds. Under Lloyd’s byelaws, these amounts can only be used to pay claims and allowable expenses of the syndicate and 
cannot be withdrawn from the trust funds until they become distributable as profit once annual solvency requirements are met. 
Included in this amount is $1,068 million (2022 $790 million) of short-term money. 

3.2.3  Derivatives over investment assets
In accordance with our investment management policies and procedures, derivatives may be used in the investment portfolio as both 
a hedging tool and to alter the risk profile of the portfolio. Risk management policies over the use of derivatives are set out in note 4. 

The Group’s notional exposure to investment derivatives at the balance date is set out in the table below:

NOTIONAL EXPOSURE

Bond futures
Short government bond futures
Long government bond futures
Interest rate futures
Short interest rates futures
Equity index futures
Short equity index futures

2023
US$M

(527)
202

(2,809)

– 

2022
US$M

(1,347)
12

– 

(80)

QBE may also have exposure to derivatives through investments in underlying pooled funds in accordance with the fund mandate. 
Those derivative exposures are not included in the table above.

How we account for the numbers

Derivatives over investment assets are required to be measured at fair value through profit or loss. They are therefore 
initially recognised at fair value, determined as the cost of acquisition excluding transaction costs, and are remeasured 
to fair value through profit or loss at each reporting date. For futures and options traded in an active market, the fair 
value is determined by reference to quoted market prices. The mark-to-market value of futures positions is cash settled 
on a daily basis resulting in a fair value of nil at the balance date. The fair value of options was not material at the 
balance date.

98

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

3. 

INVESTMENT ACTIVITIES

Developed market equity and emerging market equity

4. 

RISK MANAGEMENT

These assets mainly comprise listed equities traded in active markets valued by reference to quoted prices. 

Overview

Unlisted property trusts and infrastructure assets

These assets are valued using current unit prices as advised by the responsible entity, trustee or equivalent of the investment management 

scheme. As the valuation techniques require the use of significant unobservable inputs, these assets have been categorised as level 3.

These assets mainly comprise investments in exchange-traded commodity products that are listed, traded in active markets and 

valued by reference to quoted prices. Alternatives also includes strategic unlisted investments which are valued based on other 

valuation techniques utilising significant unobservable inputs.

Movements in level 3 investments

The following table provides an analysis of investments valued with reference to level 3 inputs:

Alternatives

LEVEL 3

At 1 January

Purchases

Disposals

Foreign exchange

At 31 December

Fair value movement recognised in profit or loss

3.2.2  Charges over investments and restrictions on use

A controlled entity has given fixed and floating charges over certain of its investments and other assets in order to secure the obligations 

of the Group’s corporate members at Lloyd’s as described in note 8.2.

Included in investments are amounts totalling $4,053 million (2022 $3,538 million) which are held in Lloyd’s syndicate trust funds. 

In order to conduct underwriting business within some territories, Lloyd’s syndicates are required to lodge assets in locally regulated 

trust funds. Under Lloyd’s byelaws, these amounts can only be used to pay claims and allowable expenses of the syndicate and 

cannot be withdrawn from the trust funds until they become distributable as profit once annual solvency requirements are met. 

Included in this amount is $1,068 million (2022 $790 million) of short-term money. 

3.2.3  Derivatives over investment assets

In accordance with our investment management policies and procedures, derivatives may be used in the investment portfolio as both 

a hedging tool and to alter the risk profile of the portfolio. Risk management policies over the use of derivatives are set out in note 4. 

The Group’s notional exposure to investment derivatives at the balance date is set out in the table below:

2023

US$M

1,809

157

(137)

(17)

16

1,828

2022

US$M

1,697

200

(98)

70

(60)

1,809

2023

US$M

(527)

202

(2,809)

– 

2022

US$M

(1,347)

12

– 

(80)

NOTIONAL EXPOSURE

Bond futures

Short government bond futures

Long government bond futures

Interest rate futures

Short interest rates futures

Equity index futures

Short equity index futures

QBE may also have exposure to derivatives through investments in underlying pooled funds in accordance with the fund mandate. 

Those derivative exposures are not included in the table above.

How we account for the numbers

Derivatives over investment assets are required to be measured at fair value through profit or loss. They are therefore 

initially recognised at fair value, determined as the cost of acquisition excluding transaction costs, and are remeasured 

to fair value through profit or loss at each reporting date. For futures and options traded in an active market, the fair 

value is determined by reference to quoted market prices. The mark-to-market value of futures positions is cash settled 

on a daily basis resulting in a fair value of nil at the balance date. The fair value of options was not material at the 

balance date.

QBE is in the business of managing risk. The Group’s ability to satisfy customers’ risk management needs is central 
to what we do. QBE aims to generate wealth and maximise returns for its shareholders by pursuing opportunities that 
involve risk. Our people are responsible for ensuring that QBE’s risks are managed and controlled on a day-to-day 
basis. QBE aims to use its ability to properly manage risk to provide more certainty and improved outcomes for 
all stakeholders.

QBE applies a consistent and integrated approach to enterprise risk management (ERM). QBE’s ERM framework is articulated 
in the Group Risk Management Strategy (RMS) and Reinsurance Management Strategy (REMS), both of which are approved 
annually by the Board and lodged with APRA. QBE’s framework sets out the approach to managing risk effectively to meet strategic 
objectives while taking into account the creation of value for our shareholders. 

The ERM framework consists of complementary elements that are embedded throughout the business management cycle and culture 
of the organisation. Key aspects include risk appetite, governance, reporting, risk identification and measurement, modelling and 
stress testing, risk systems, and risk culture. 

Risk management is a continuous process and an integral part of robust business management. QBE’s approach is to integrate risk 
management into the broader management processes of the organisation. It is QBE’s philosophy to ensure that risk management 
remains embedded in the business and that the risk makers or risk takers are themselves the risk managers. Specifically, the 
management of risk must occur at each point in the business management cycle. 

The Group’s strategy for managing risk is to:

• achieve competitive advantage by better understanding the risk environments in which we operate; 

• give confidence to the business to make objective, risk-based decisions to optimise returns; and

• avoid unwelcome surprises to the achievement of business objectives by reducing uncertainty and volatility through 

the identification and management of risks.

The key risk categories used by QBE to classify risk are as follows:

• strategic risk (note 4.1);

• insurance risk (note 4.2);

• credit risk (note 4.3);

• market risk (note 4.4);

• liquidity risk (note 4.5);

• operational risk (note 4.6);

• compliance risk (note 4.7); and

• Group risk (note 4.8). 

Risk culture

A sound risk culture underpins QBE’s risk management strategy and is a key component of the ERM framework. QBE is committed 
to, and supports, a strong risk culture. 

It recognises the importance of risk awareness and culture as being instrumental in the effectiveness of the ERM framework. 
Further information on risk culture is provided on page 16 of this Annual Report.

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100

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

4.1 

Strategic risk

Overview

Strategic risk is the current and prospective impact on earnings and/or capital arising from strategic business decisions 
and responsiveness to external change. QBE classifies strategic risk into five subcategories, as follows:

• Performance risk: QBE is not able to achieve its performance objectives.

• Capital risk: QBE’s structure and availability of capital do not meet regulatory requirements and/or support 

strategic initiatives.

• Reputational risk: QBE’s stakeholders have a negative perception of QBE’s brand which may damage QBE’s 

reputation and threaten overall performance.

• Environmental, social and governance (ESG) risk: this is the negative impact on QBE’s strategic priorities or objectives 

from ESG issues.

• Emerging risk: these are new or future risks which are difficult to assess but may have a significant impact to QBE 

or the markets in which it operates.

QBE’s approach to managing strategic risk is underpinned by the Group strategic risk appetite statement as set by the 
Board and is summarised below.

Performance risk

Failure to deliver acceptable performance can result in shareholders losing confidence, impacting our reputation in the market 
and ultimately impacting our ability to deliver our strategic objectives. 

QBE evaluates performance risk by assessing potential earnings volatility against its risk appetite and considering the changing 
levels of risk in its business plan. The plan is supported by an established regime of attestations by chief underwriting officers, 
chief actuaries, chief financial officers and chief risk officers, enabling action prior to signing off the business plan and making 
market commitments. Performance risk is monitored throughout the year against committed business plans (supported 
by performance monitoring, cell reviews and mid-year risk reviews).

Capital risk

The Internal Capital Adequacy Assessment Process (ICAAP) outlines QBE’s approach to:

• assessing the risks arising from its activities and ensuring that capital held is commensurate with the level of risk; and

• maintaining adequate capital over time, including the setting of capital targets consistent with risk profile, risk appetite and 

regulatory capital requirements. 

QBE maintains a level of eligible regulatory capital that exceeds requirements, with the capital target set at a multiple of 1.6–1.8 times 
the Prescribed Capital Amount (PCA).

All regulated controlled entities are required to maintain a minimum level of capital to meet obligations to policyholders. It is the 
Group’s policy that each regulated entity maintains a capital base appropriate to its size, business mix, complexity and risk profile 
which fully complies with and meets or exceeds local regulatory requirements. 

QBE aims to maintain the ratio of borrowings to total capital at 15%–30%. At the balance date, this ratio was 21.9% (2022 23.7%). 
2022 is calculated based on total capital that has been restated for the application of AASB 17 (note 8.1.1).

The ICAAP also sets out QBE’s approach to:

• accessing potential sources of additional capital if required;

• setting and monitoring risk indicators and triggers for capital levels, to alert management to periods of potential heightened risk;

• outlining the management actions that can be used to mitigate the potential implications of heightened risk;

• undertaking stress testing and scenario analysis to anticipate, and be better prepared for, certain adverse events; 

• assessing the quality and composition of capital to meet regulatory requirements and rating agency guidelines and rules; and 

• determining and monitoring capital allocation and ensuring that QBE earns an effective rate of return on its capital deployed. 

The governance over the ICAAP includes the Board and Board Committees, the Executive Investment & Capital Committee, 
the Executive Risk Committee, senior management, and supporting functions. 

100

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

4.1 

Strategic risk

Overview

Strategic risk is the current and prospective impact on earnings and/or capital arising from strategic business decisions 

and responsiveness to external change. QBE classifies strategic risk into five subcategories, as follows:

• Performance risk: QBE is not able to achieve its performance objectives.

• Capital risk: QBE’s structure and availability of capital do not meet regulatory requirements and/or support 

strategic initiatives.

• Reputational risk: QBE’s stakeholders have a negative perception of QBE’s brand which may damage QBE’s 

reputation and threaten overall performance.

• Environmental, social and governance (ESG) risk: this is the negative impact on QBE’s strategic priorities or objectives 

• Emerging risk: these are new or future risks which are difficult to assess but may have a significant impact to QBE 

QBE’s approach to managing strategic risk is underpinned by the Group strategic risk appetite statement as set by the 

from ESG issues.

or the markets in which it operates.

Board and is summarised below.

Performance risk

Failure to deliver acceptable performance can result in shareholders losing confidence, impacting our reputation in the market 

and ultimately impacting our ability to deliver our strategic objectives. 

QBE evaluates performance risk by assessing potential earnings volatility against its risk appetite and considering the changing 

levels of risk in its business plan. The plan is supported by an established regime of attestations by chief underwriting officers, 

chief actuaries, chief financial officers and chief risk officers, enabling action prior to signing off the business plan and making 

market commitments. Performance risk is monitored throughout the year against committed business plans (supported 

by performance monitoring, cell reviews and mid-year risk reviews).

Capital risk

The Internal Capital Adequacy Assessment Process (ICAAP) outlines QBE’s approach to:

• assessing the risks arising from its activities and ensuring that capital held is commensurate with the level of risk; and

• maintaining adequate capital over time, including the setting of capital targets consistent with risk profile, risk appetite and 

regulatory capital requirements. 

the Prescribed Capital Amount (PCA).

QBE maintains a level of eligible regulatory capital that exceeds requirements, with the capital target set at a multiple of 1.6–1.8 times 

All regulated controlled entities are required to maintain a minimum level of capital to meet obligations to policyholders. It is the 

Group’s policy that each regulated entity maintains a capital base appropriate to its size, business mix, complexity and risk profile 

which fully complies with and meets or exceeds local regulatory requirements. 

QBE aims to maintain the ratio of borrowings to total capital at 15%–30%. At the balance date, this ratio was 21.9% (2022 23.7%). 

2022 is calculated based on total capital that has been restated for the application of AASB 17 (note 8.1.1).

The ICAAP also sets out QBE’s approach to:

• accessing potential sources of additional capital if required;

• setting and monitoring risk indicators and triggers for capital levels, to alert management to periods of potential heightened risk;

• outlining the management actions that can be used to mitigate the potential implications of heightened risk;

• undertaking stress testing and scenario analysis to anticipate, and be better prepared for, certain adverse events; 

• assessing the quality and composition of capital to meet regulatory requirements and rating agency guidelines and rules; and 

• determining and monitoring capital allocation and ensuring that QBE earns an effective rate of return on its capital deployed. 

The governance over the ICAAP includes the Board and Board Committees, the Executive Investment & Capital Committee, 

the Executive Risk Committee, senior management, and supporting functions. 

Reputational risk

QBE assesses reputational risk through the quality of the relationships with key stakeholders, including shareholders, regulators, 
customers, governments, communities, employees, and third-party partners including distributors and suppliers. Each of these 
relationships is managed through divisional and Group teams, including corporate affairs, human resources, regulatory, compliance 
and distribution teams. 

ESG and emerging risks

ESG and emerging risk horizon scans are performed annually to identify and assess the key ESG and emerging risks to QBE. 
We maintain oversight of ESG risks through the ESG Risk Committee and both ESG and emerging risks are considered as part 
of the development of the Group’s top risk profile. The Group’s top risk profile is overseen by the Executive Risk Committee and the 
Board Risk & Capital Committee. 

ESG, including climate change, is a material business risk for QBE, potentially impacting our business and customers in the medium 
to long term. We have considered short-term scenarios that could affect our insurance business written to date and current investments. 
Climate change is expected to increasingly impact the frequency and severity of weather-related natural catastrophes over the long 
term. In the short term, it is often difficult to distinguish the impact of climate change from the normal variability in weather and natural 
catastrophes. Claims in respect of classes most impacted by these events (e.g. property classes) are typically reported and settled 
soon after the claim event, and climate change is therefore not expected to materially impact the level of uncertainty in estimating the 
ultimate cost of those claims. QBE looks to manage for natural catastrophe volatility by considering a wide range of event frequency 
and severity scenarios in our capital planning, and by purchasing a comprehensive Group catastrophe reinsurance program.

QBE’s investments continue to be resilient with respect to climate transition risks as they have limited exposure to highly 
impacted sectors. Given the medium to long-term nature of the estimated impacts of climate transition, this factor is not expected 
to be significant to the fair value measurement of the Group’s investment assets at the balance date.

Further detail on QBE’s approach to climate change is included in our climate change disclosures on pages 20 to 33 of this 
Annual Report.

4.2 

Insurance risk

Overview

Insurance risk is the risk of fluctuations in the timing, frequency and severity of insured events and claims settlements, 
relative to expectations.

QBE classifies insurance risk into three subcategories, as follows:

• underwriting/pricing risk;

• insurance concentration risk; and

• reserving risk.

QBE’s approach to managing insurance risk is underpinned by the Group’s insurance risk appetite statement which 
is set by the Board and is summarised below.

Underwriting/pricing risk

QBE manages underwriting/pricing risk by appropriately setting and adjusting underwriting strategy, risk selection and pricing 
practices throughout the underwriting cycle. Underwriting/pricing risk is monitored throughout the year against committed business 
plans, underpinned by cell reviews.

QBE’s underwriting strategy aims to diversify and limit the type of insurance risks accepted and reduce the variability of the expected 
outcome. The underwriting strategy is implemented through QBE’s annual business planning process, supported by minimum 
underwriting standards and delegated authorities. These authorities reflect the level of risk that the Group is prepared to take with 
respect to each permitted insurance class.

Pricing of risks is controlled by the use of in-house pricing models relevant to specific portfolios and the markets in which QBE 
operates. Underwriters and actuaries maintain pricing and claims analysis for each portfolio, combined with a knowledge of current 
developments in the respective markets and classes of business.

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102

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

Insurance concentration risk

QBE’s exposure to concentrations of insurance risk is mitigated by maintaining a business portfolio that is diversified across countries 
and classes of business. Product diversification is pursued through a strategy of developing strong underwriting skills in a wide variety 
of classes of business. 

The table below demonstrates the diversity of QBE’s operations:

INSURANCE REVENUE

Commercial and domestic property
Agriculture
Public/product liability
Motor and motor casualty
Marine, energy and aviation
Professional indemnity
Workers’ compensation
Accident and health
Financial and credit
Other

2023
US$M

6,306
4,310
2,703
2,059
1,506
1,373
1,082
969
385
133
20,826

RESTATED 
2022
US$M

5,538 
3,935 
2,243 
1,900 
1,297 
1,540 
1,131 
802 
419 
99 
18,904 

Insurance concentration risk includes the risks from natural or man-made events that have the potential to produce claims from 
many of the Group’s policyholders at the same time (e.g. catastrophes). QBE currently uses a variety of methodologies to monitor 
aggregate exposures and manage catastrophe risk. These include the use of catastrophe models from third-party vendors, 
realistic disaster scenarios and group aggregate methodology. In determining catastrophe risk accumulation, QBE considers the 
insurance concentration risk charge (ICRC), a capital measure under APRA prudential standards. QBE’s maximum risk tolerance 
for an individual natural catastrophe is determined annually and is linked to the maximum net annual allowance for catastrophe claims.

Reserving risk

Reserving risk is managed through the actuarial valuation of insurance liabilities, which is conducted at least half-yearly. The valuation 
of the present value of future claims cash flows within the net insurance contract liabilities is performed by qualified and experienced 
actuaries, with reference to historical data and reasoned expectations of future experience and events. The present value of future 
claims cash flows within the net insurance contract liabilities is subject to a comprehensive independent review at least annually.

102

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

Insurance concentration risk

of classes of business. 

The table below demonstrates the diversity of QBE’s operations:

INSURANCE REVENUE

Commercial and domestic property

Agriculture

Public/product liability

Motor and motor casualty

Marine, energy and aviation

Professional indemnity

Workers’ compensation

Accident and health

Financial and credit

Other

2023

US$M

6,306

4,310

2,703

2,059

1,506

1,373

1,082

969

385

133

RESTATED 

2022

US$M

5,538 

3,935 

2,243 

1,900 

1,297 

1,540 

1,131 

802 

419 

99 

20,826

18,904 

Insurance concentration risk includes the risks from natural or man-made events that have the potential to produce claims from 

many of the Group’s policyholders at the same time (e.g. catastrophes). QBE currently uses a variety of methodologies to monitor 

aggregate exposures and manage catastrophe risk. These include the use of catastrophe models from third-party vendors, 

realistic disaster scenarios and group aggregate methodology. In determining catastrophe risk accumulation, QBE considers the 

insurance concentration risk charge (ICRC), a capital measure under APRA prudential standards. QBE’s maximum risk tolerance 

for an individual natural catastrophe is determined annually and is linked to the maximum net annual allowance for catastrophe claims.

Reserving risk

Reserving risk is managed through the actuarial valuation of insurance liabilities, which is conducted at least half-yearly. The valuation 

of the present value of future claims cash flows within the net insurance contract liabilities is performed by qualified and experienced 

actuaries, with reference to historical data and reasoned expectations of future experience and events. The present value of future 

claims cash flows within the net insurance contract liabilities is subject to a comprehensive independent review at least annually.

QBE’s exposure to concentrations of insurance risk is mitigated by maintaining a business portfolio that is diversified across countries 

and classes of business. Product diversification is pursued through a strategy of developing strong underwriting skills in a wide variety 

Overview

4.3 

Credit risk 

Credit risk is the risk of financial loss from a counterparty’s failure to meet their financial obligations, including both 
inability or unwillingness to pay, as well as loss due to credit quality deterioration from rating downgrades. QBE’s 
exposure to credit risk results from financial transactions with securities issuers, debtors, brokers, policyholders, 
reinsurers and guarantors.

QBE’s approach to managing credit risk is underpinned by the Group’s credit risk appetite as set by the Board and 
is summarised below.

Reinsurance credit risk

The Group’s objective is to maximise placement of reinsurance with highly rated counterparties. Concentration of risk with 
reinsurance counterparties is monitored strictly and regularly by the Group’s Security Committee and is controlled by reference 
to the following protocols:

• treaty or facultative reinsurance is placed in accordance with the requirements of the Group REMS and Group Security 

Committee guidelines;

• reinsurance arrangements are regularly reassessed to determine their effectiveness based on current exposures, historical 

claims and potential future claims based on the Group’s insurance concentrations; and 

• exposure to reinsurance counterparties and the credit quality of those counterparties are actively monitored.

Credit risk exposures are calculated regularly and compared with authorised credit limits. The Group is exposed to material 
concentrations of credit risk in relation to reinsurance recoveries at the balance date, in particular to large global reinsurers. 
In certain cases, the Group requires letters of credit or other collateral arrangements to be provided to guarantee the recoverability 
of the amount involved. Collateral held for the Group in respect of reinsurance arrangements, including loss portfolio transfer 
contracts, is $1,261 million (2022 $1,809 million). The carrying amount of relevant asset classes on the balance sheet represents 
the maximum amount of credit exposure. Collateral held may reduce the level of credit risk associated with this exposure but does 
not change the total amount recoverable. The credit rating analysis below includes the impact of such security arrangements. 
In some cases, further security has been obtained in the form of trust arrangements, reinsurer default protection and other 
potential offsets. This additional security has not been included in the credit rating analysis below.

The following table provides information about the quality of the Group’s credit risk exposure in respect of reinsurance recoveries 
at the balance date. The analysis classifies the assets according to Standard & Poor’s (S&P) counterparty financial strength credit 
ratings. AAA is the highest possible rating. 

At 31 December 2023
Reinsurance recoveries on incurred outstanding claims1
Reinsurance recoveries on paid claims
At 31 December 2022 (RESTATED)
Reinsurance recoveries on incurred outstanding claims1
Reinsurance recoveries on paid claims

CREDIT RATING

AAA
US$M

AA
US$M

A
US$M

BBB
US$M

NOT RATED
US$M

72
4

69
2

4,931
1,797

4,423
2,066

2,655
383

1,892
437

11
9

31
4

153
19

77
15

TOTAL
US$M

7,822
2,212

6,492
2,524

1  Includes $1,798 million (2022 $636 million) of recoveries under reinsurance loss portfolio transfer contracts that are recognised within the 

reinsurance asset for remaining coverage.

The following table provides further information regarding the ageing of reinsurance recoveries on paid claims at the balance date:

Reinsurance recoveries on paid claims

PAST DUE BUT NOT IMPAIRED

NEITHER 
PAST 
DUE NOR 
IMPAIRED
US$M

1,119

0 TO 3 
MONTHS
US$M

1,031

1,183 

1,043 

4 TO 6 
MONTHS
US$M

7 MONTHS  
TO 1 YEAR
US$M

5

54 

1

147 

GREATER 
THAN  
1 YEAR
US$M

56

97 

TOTAL
US$M

2,212

2,524 

YEAR

2023
2022 
(RESTATED)

103

A
n
n
u
a
l

R
e
p
o
r
t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
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r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
104

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

Investment and treasury credit risk

The Group only transacts with investment counterparties within the limits outlined in the delegated authorities. Investment 
counterparty exposure limits are applied to individual counterparty exposures and to multiple exposures within a group of related 
companies in relation to investments, cash deposits and forward foreign exchange exposures. Counterparty exposure limit 
compliance is monitored daily.

The following table provides information regarding the Group’s aggregate credit risk exposure at the balance date in respect of the 
major classes of financial assets. Amounts within insurance contract liabilities and other receivables are excluded from this analysis 
on the basis that they comprise smaller credit risk items which generally cannot be rated and are not individually material. The analysis 
classifies the assets according to S&P counterparty credit ratings. AAA is the highest possible rating. Rated assets falling outside the 
range of AAA to BBB are classified as speculative grade.

At 31 December 2023
Cash and cash equivalents
Interest-bearing investments
Derivative financial instruments
At 31 December 2022 (RESTATED)
Cash and cash equivalents
Interest-bearing investments
Derivative financial instruments

CREDIT RATING

AAA
US$M

AA
US$M

314
4,310
– 

137 
3,796
– 

478
11,051
147

231
10,217
121

A
US$M

558
7,652
99

437
7,629
154

BBB
US$M

SPECULATIVE 
GRADE
US$M

NOT RATED
US$M

TOTAL
US$M

11
2,587
3

17
2,869
8

– 
688
– 

1
482
– 

5
217
1

10
153
1

1,366
26,505
250

833
25,146
284

The carrying amount of non-derivative asset classes on the balance sheet represents the maximum amount of credit exposure at the 
balance date. The fair value of derivatives shown on the balance sheet represents the risk exposure at the balance date but not the 
maximum risk exposure that could arise in the future as a result of changing values.

Insurance and other credit risk 

The Group transacts with brokers that are reputable, suitable and approved in accordance with local broker policies. The continuous 
due diligence over brokers involves an assessment of the broker’s reputation, regulatory standing and financial strength. 

QBE regularly reviews the collectability of receivables and the adequacy of associated provisions for impairment. Concentration risk 
for large brokers is also monitored. Balances are monitored on the basis of uncollected debt and debt outstanding in excess of six 
months. Brokers are also subject to regular due diligence to ensure adherence to local broker policies and associated requirements.

The following table provides information regarding the ageing of the Group’s financial assets that are past due but not impaired and 
which are largely unrated at the balance date:

PAST DUE BUT NOT IMPAIRED

NEITHER PAST 
DUE NOR 
IMPAIRED
US$M

0 TO 3 
MONTHS
US$M

4 TO 6 
MONTHS
US$M

7 MONTHS  
TO 1 YEAR
US$M

GREATER THAN  
1 YEAR
US$M

9,312
212

9,524
513

8,149
213

8,362
417

427
2

429
3

282
1

283
3

115
1

116
1

110
1

111
1

71
4

75
1

51
2

53
1

27
1

28
1

28
5

33
1

TOTAL
US$M

9,952
220

10,172
519

8,620
222

8,842
423

At 31 December 2023
Premium receivable1
Other trade debtors
Receivables within insurance 
contract liabilities
Other receivables
At 31 December 2022 (RESTATED)
Premium receivable1
Other trade debtors
Receivables within insurance 
contract liabilities
Other receivables

1  Net of a provision for impairment. 

Due to the predominantly short-term nature of these receivables, the carrying value is assumed to approximate the fair value. 
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables. No receivables 
are pledged by the Group as collateral for liabilities or contingent liabilities.

 
 
 
104

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

Investment and treasury credit risk

The Group only transacts with investment counterparties within the limits outlined in the delegated authorities. Investment 

counterparty exposure limits are applied to individual counterparty exposures and to multiple exposures within a group of related 

companies in relation to investments, cash deposits and forward foreign exchange exposures. Counterparty exposure limit 

compliance is monitored daily.

The following table provides information regarding the Group’s aggregate credit risk exposure at the balance date in respect of the 

major classes of financial assets. Amounts within insurance contract liabilities and other receivables are excluded from this analysis 

on the basis that they comprise smaller credit risk items which generally cannot be rated and are not individually material. The analysis 

classifies the assets according to S&P counterparty credit ratings. AAA is the highest possible rating. Rated assets falling outside the 

range of AAA to BBB are classified as speculative grade.

At 31 December 2023

Cash and cash equivalents

Interest-bearing investments

Derivative financial instruments

At 31 December 2022 (RESTATED)

Cash and cash equivalents

Interest-bearing investments

Derivative financial instruments

CREDIT RATING

AAA

US$M

AA

US$M

314

4,310

– 

137 

3,796

– 

478

11,051

147

231

10,217

121

A

US$M

558

7,652

99

437

7,629

154

SPECULATIVE 

BBB

US$M

GRADE

US$M

NOT RATED

US$M

TOTAL

US$M

2,587

688

2,869

482

11

3

17

8

– 

– 

1

– 

217

5

1

10

153

1

1,366

26,505

250

833

25,146

284

The carrying amount of non-derivative asset classes on the balance sheet represents the maximum amount of credit exposure at the 

balance date. The fair value of derivatives shown on the balance sheet represents the risk exposure at the balance date but not the 

maximum risk exposure that could arise in the future as a result of changing values.

Insurance and other credit risk 

The Group transacts with brokers that are reputable, suitable and approved in accordance with local broker policies. The continuous 

due diligence over brokers involves an assessment of the broker’s reputation, regulatory standing and financial strength. 

QBE regularly reviews the collectability of receivables and the adequacy of associated provisions for impairment. Concentration risk 

for large brokers is also monitored. Balances are monitored on the basis of uncollected debt and debt outstanding in excess of six 

months. Brokers are also subject to regular due diligence to ensure adherence to local broker policies and associated requirements.

The following table provides information regarding the ageing of the Group’s financial assets that are past due but not impaired and 

which are largely unrated at the balance date:

PAST DUE BUT NOT IMPAIRED

NEITHER PAST 

DUE NOR 

IMPAIRED

US$M

0 TO 3 

MONTHS

US$M

4 TO 6 

MONTHS

US$M

7 MONTHS  

TO 1 YEAR

US$M

GREATER THAN  

1 YEAR

US$M

At 31 December 2023

Premium receivable1

Other trade debtors

Receivables within insurance 

contract liabilities

Other receivables

Premium receivable1

Other trade debtors

Receivables within insurance 

contract liabilities

Other receivables

At 31 December 2022 (RESTATED)

1  Net of a provision for impairment. 

9,312

212

9,524

513

8,149

213

8,362

417

427

429

282

283

2

3

1

3

115

1

1

116

110

1

111

1

71

4

75

1

51

2

53

1

Due to the predominantly short-term nature of these receivables, the carrying value is assumed to approximate the fair value. 

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables. No receivables 

are pledged by the Group as collateral for liabilities or contingent liabilities.

TOTAL

US$M

9,952

220

10,172

519

8,620

222

8,842

423

27

1

28

1

28

5

33

1

4.4  Market risk

Overview

Market risk is the risk of adverse impacts on earnings resulting from changes in market factors. Market factors include, 
but are not limited to, interest rates, equity prices, credit spreads and foreign exchange rates.

QBE’s approach to managing market risk is underpinned by the Group’s market risk appetite as set by the Board 
and is summarised below.

QBE’s approach to managing investment market movements is underpinned by the Group’s investment strategy which outlines QBE’s 
view of the markets and its corresponding investment approach. 

Investment market risk is managed through the application of risk limits. These limits are based on the market risk appetite 
as determined by the Board and apply to:

• losses generated on the investment portfolio under market stress scenarios. The scenarios assume adverse movements in market 

factors and are designed to reflect a significant market stress event; and

• sensitivities to changes in risk factors which have a significant impact on the investment portfolio such as interest rate risk.

Interest rate risk

QBE’s exposure to interest rate risk arises mainly through its holdings in interest-bearing assets and the measurement of its net 
insurance contract liabilities. Interest-bearing borrowings issued by the Group are measured at amortised cost and therefore do not 
expose the Group result to fair value interest rate risk.

Interest-bearing investments with a floating interest rate expose the Group to cash flow interest rate risk, whereas fixed interest 
rate instruments expose the Group to fair value interest rate risk. QBE’s risk management approach is to minimise interest rate 
risk by actively managing investment portfolios to achieve a balance between cash flow interest rate risk and fair value interest 
rate risk. The Group predominantly invests in high quality, liquid interest-bearing securities and cash and may use derivative 
financial instruments to manage the interest rate risk of the fixed interest investment portfolio and other financial instruments. 
All investments are financial assets measured at fair value through profit or loss. Movements in interest rates impacting the 
fair value of interest-bearing financial assets therefore impact reported profit or loss after income tax.

The estimates of future cash flows in the net insurance contract liabilities are discounted to present value by reference to risk-free 
interest rates adjusted to reflect an illiquidity premium (note 2.2.5). The Group is therefore also exposed to potential profit or loss 
volatility arising from the measurement of the net insurance contract liabilities as a result of interest rate movements. In practice, 
over the longer term, an increase or decrease in interest rates is normally offset by a corresponding increase or decrease in inflation. 
The impacts of changes in interest rates on the Group’s net insurance contract liabilities are recognised within the net insurance 
finance result in profit or loss which is analysed as follows: 

Insurance finance (expenses) income
Effect of changes in interest rates
Discount unwind and changes in financial assumptions
Accretion of interest on contractual service margin

Reinsurance finance income (expenses)
Effect of changes in interest rates
Discount unwind and changes in financial assumptions
Accretion of interest on contractual service margin and premium financing component

Net insurance finance (expenses) income

NOTE

2.2.1

2.2.1

2023
US$M

(72)
(962)
(5)
(1,039)

42
434
(16)
460
(579)

RESTATED 
2022
US$M

 1,796 
 (632)
 (7)
 1,157 

(546)
 426 
– 
(120)
 1,037 

The impact of interest rate changes on the fair value of interest-bearing financial assets will be partially offset by the corresponding 
impact on the Group’s net insurance contract liabilities. The Group seeks to minimise the net impact of movements in interest rates 
on the Group’s profit or loss through managing the duration of fixed interest securities relative to the net insurance contract liabilities. 
At the balance date, the average modified duration of cash and fixed interest securities was 1.7 years (2022 1.6 years). Although QBE 
maintains a shorter asset duration relative to net insurance contract liabilities, the Group’s overall exposure to interest rate risk is not 
material given the quantum by which the value of fixed income assets exceeds the value of the net insurance contract liabilities.

105

A
n
n
u
a
l

R
e
p
o
r
t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
106

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

The impact of a 1.0% increase or decrease in interest rates on interest-bearing financial assets owned by the Group and the 
corresponding impact of a 1.0% increase or decrease in discount rates on the net insurance contract liabilities at the balance date 
is shown in the table below:

Interest rate movement – interest-bearing financial assets

Discount rate movement – net insurance contract liabilities²

SENSITIVITY
%

+1
-1
+1
-1

PROFIT (LOSS)1

2023
US$M

(337)
347
348
(383)

RESTATED
2022
US$M

(294)
309
334
(365)

1  Net of tax at the Group’s prima facie income tax rate of 30%.
2  Net of reinsurance held. Further information relating to the sensitivity of the net insurance contract liabilities to changes in key variables 

is provided in note 2.2.7.

Equity price risk

Equity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market 
prices (other than those arising from interest rate or currency risk), whether those changes are caused by factors specific to the 
individual financial instrument or its issuer, or factors affecting all similar financial instruments traded on the market.

QBE is exposed to equity price risk on its investment in growth assets and may use derivative financial instruments to manage this 
exposure. Exposure is also managed by diversification across international markets and currencies.

Growth assets are measured at fair value through profit or loss. The impact of a 20% increase or decrease in the value of investments 
owned by the Group at the balance date on profit or loss after income tax is shown in the table below:

Infrastructure assets

Unlisted property trusts

Alternatives

ASX 200

S&P 500

FTSE 100

EURO STOXX

Emerging market equity

SENSITIVITY
%

+20
-20
+20
-20
+20
-20
+20
-20
+20
-20
+20
-20
+20
-20
+20
-20

PROFIT (LOSS)1

2023
US$M

130
(130)
82
(82)
26
(26)
21
(21)
18
(18)
18
(18)
8
(8)
– 
– 

2022
US$M

117
(117)
105
(105)
25
(25)
8
(8)
8
(8)
8
(8)
11
(11)
9
(9)

1  Net of tax at the Group’s prima facie income tax rate of 30%.

QBE is also exposed to price risk on its fixed interest securities as discussed above in relation to interest rate risk, and below in relation 
to credit spread risk. All securities are measured at fair value through profit or loss.

 
106

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

Interest rate movement – interest-bearing financial assets

Discount rate movement – net insurance contract liabilities²

is provided in note 2.2.7.

Equity price risk

Equity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market 

prices (other than those arising from interest rate or currency risk), whether those changes are caused by factors specific to the 

individual financial instrument or its issuer, or factors affecting all similar financial instruments traded on the market.

QBE is exposed to equity price risk on its investment in growth assets and may use derivative financial instruments to manage this 

exposure. Exposure is also managed by diversification across international markets and currencies.

Growth assets are measured at fair value through profit or loss. The impact of a 20% increase or decrease in the value of investments 

owned by the Group at the balance date on profit or loss after income tax is shown in the table below:

Infrastructure assets

Unlisted property trusts

Alternatives

ASX 200

S&P 500

FTSE 100

EURO STOXX

Emerging market equity

SENSITIVITY

PROFIT (LOSS)1

%

+20

-20

+20

-20

+20

-20

+20

-20

+20

-20

+20

-20

+20

-20

+20

-20

2023

US$M

130

(130)

82

(82)

26

(26)

21

(21)

18

(18)

18

(18)

8

(8)

– 

– 

2022

US$M

117

(117)

105

(105)

25

(25)

(8)

8

8

8

(8)

(8)

11

(11)

9

(9)

1  Net of tax at the Group’s prima facie income tax rate of 30%.

QBE is also exposed to price risk on its fixed interest securities as discussed above in relation to interest rate risk, and below in relation 

to credit spread risk. All securities are measured at fair value through profit or loss.

4. 

RISK MANAGEMENT

The impact of a 1.0% increase or decrease in interest rates on interest-bearing financial assets owned by the Group and the 

corresponding impact of a 1.0% increase or decrease in discount rates on the net insurance contract liabilities at the balance date 

is shown in the table below:

Credit spread risk

Movements in credit spreads impact the value of corporate interest-bearing securities, emerging market and high yield debt and 
private credit, and therefore impact reported profit or loss after tax. This risk is managed by investing in mostly high quality, liquid 
interest-bearing securities and by managing the credit spread duration of the interest-bearing securities portfolio.

The impact of a 0.5% increase or decrease in credit spreads on interest-bearing financial assets held by the Group at the balance 
date on profit or loss after income tax is shown in the table below:

SENSITIVITY

%

+1

-1

+1

-1

PROFIT (LOSS)1

2023

US$M

(337)

347

348

(383)

RESTATED

2022

US$M

(294)

309

334

(365)

Credit spread movement – interest-bearing financial assets 2

1  Net of tax at the Group’s prima facie income tax rate of 30%.
2  Includes infrastructure debt and other investments.

SENSITIVITY
%

+0.5
-0.5

PROFIT (LOSS)1

2023
US$M

(116)
111

2022
US$M

(125)
120

1  Net of tax at the Group’s prima facie income tax rate of 30%.

2  Net of reinsurance held. Further information relating to the sensitivity of the net insurance contract liabilities to changes in key variables 

Foreign exchange risk

QBE’s approach to foreign exchange management is underpinned by the Group’s foreign currency strategy. The Group’s foreign 
exchange exposure generally arises as a result of either the translation of foreign currency amounts to the functional currency 
of a controlled entity (operational currency risk) or due to the translation of the Group’s net investments in foreign operations to the 
functional currency of the ultimate parent entity of Australian dollars and to QBE’s presentation currency of US dollars (currency 
translation risk).

Operational currency risk

Operational currency risk is managed as follows:

• Each controlled entity manages the volatility arising from changes in foreign exchange rates by matching liabilities with assets 

of the same currency, as far as is practicable, thus ensuring that any exposures to foreign currencies are minimised. The Group’s 
aim is to mitigate, where possible, its operational foreign currency exposures at a controlled entity level.

• Forward foreign exchange contracts are used where possible to protect any residual currency positions. Where appropriate, forward 
foreign exchange contracts may also be used in relation to the Group’s borrowings and may be designated as hedge relationships 
for accounting purposes. Further information on forward foreign exchange contracts used to manage operational currency risk 
is provided in note 5.6.

The risk management process relating to the use of forward foreign exchange contracts involves close senior management scrutiny. 
All forward foreign exchange contracts are subject to delegated authority levels provided to management and the levels of exposure 
are reviewed on an ongoing basis.

The analysis below demonstrates the impact on profit or loss after income tax of a 10% strengthening or weakening of the major 
currencies against the functional currencies of the underlying QBE entities for which the Group has a material exposure at the 
balance date. The exposures below reflect the aggregation of operational currency exposures of multiple entities with different 
functional currencies. The sensitivity is measured with reference to the Group’s residual (or unmatched) operational foreign currency 
exposures at the balance date. Operational foreign exchange gains or losses are recognised in profit or loss in accordance with the 
policy set out in note 1.2.4. The sensitivities provided demonstrate the impact of a change in one key variable in isolation while other 
assumptions remain unchanged. 

The sensitivities shown in the table below are relevant only at the balance sheet date, as any unmatched exposures are actively 
monitored by management and the exposure subsequently matched. 2022 amounts have been restated to reflect amounts within 
the net insurance contract liabilities that became monetary items following the application of AASB 17.

EXPOSURE CURRENCY

US dollar

Euro

Australian dollar

Sterling

Canadian dollar

2023

2022 (RESTATED)

RESIDUAL 
EXPOSURE
US$M

SENSITIVITY
%

 PROFIT (LOSS)1
US$M

RESIDUAL 
EXPOSURE
US$M

SENSITIVITY
%

PROFIT (LOSS)1
US$M

165

116

64

17

(2)

+10
(10)
+10
(10)
+10
(10)
+10
(10)
+10
(10)

12
(12)
8
(8)
4
(4)
1
(1)
– 
– 

350

(154)

15

15

13

+10
(10)
+10
(10)
+10
(10)
+10
(10)
+10
(10)

25
(25)
(11)
11
1
(1)
1
(1)
1
(1)

1  Net of tax at the Group’s prima facie income tax rate of 30%.

107

A
n
n
u
a
l

R
e
p
o
r
t
2
0
2
3

Q
B
E
I
n
s
u
r
a
n
c
e
G
r
o
u
p

1

O
v
e
r
v

i
e
w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
o
r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
108

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

Currency translation risk 

QBE is exposed to currency risk in relation to the translation of:

• the ultimate parent entity’s net investments in foreign operations to its functional currency of Australian dollars; and

• all non-US dollar functional currency operations to the Group’s presentation currency of US dollars.

Currency translation risk in relation to QBE’s investment in foreign operations is monitored on an ongoing basis and may be mitigated 
by designation of foreign currency borrowings as a hedge of this risk. Any borrowing that qualifies as a hedging instrument may 
be designated as a hedge of the Australian dollar ultimate parent entity’s net investments in foreign operations and any residual 
exposure to foreign operations in tradeable currencies may be hedged up to the limit specified in the Group risk appetite statement. 
The extent of hedging this exposure is carefully managed to ensure an appropriate balance between currency risk and associated 
risks such as liquidity risk and stability of capital adequacy levels. 

QBE does not ordinarily seek to use derivatives to mitigate currency translation risk on translation to the ultimate parent entity 
functional currency of Australian dollars for the following reasons:

• currency translation gains and losses generally have no cash flow;

• currency translation gains and losses are accounted for in the foreign currency translation reserve (a component of equity) 

and therefore do not impact profit or loss unless the related foreign operation is disposed of; and

• management of translation risk needs to be balanced against the impact on capital requirements and liquidity risk.

QBE may, however, elect to use derivatives to manage currency translation risk in order to preserve capital.

Currency management processes are actively monitored by Group Treasury and involve close senior management scrutiny. 
All hedge transactions are subject to delegated authority levels provided to management, and the levels of exposure are 
reviewed on an ongoing basis. All instruments that are designated as hedges are tested for effectiveness in accordance with 
AASB 9 Financial Instruments.

Further information on derivatives and borrowings designated as hedges of net investments in foreign operations is provided 
in note 5.6.1.

Foreign exchange gains or losses arising on translation of the Group’s foreign operations from the ultimate parent entity’s functional 
currency of Australian dollars to the Group’s US dollar presentation currency are recognised directly in equity in accordance with the 
policy set out in note 1.2.4. The Group cannot hedge this exposure.

The analysis below demonstrates the impact on equity of a 10% strengthening or weakening against the US dollar of the major 
currencies to which QBE is exposed through its net investments in foreign operations. The basis for the sensitivity calculation 
is the Group’s actual residual exposure at the balance date.

EXPOSURE CURRENCY

Australian dollar

Euro

Sterling

New Zealand dollar

Hong Kong dollar

Singapore dollar

RESIDUAL 
EXPOSURE
US$M

3,564

1,670

1,144

302

213

137

2023

2022 (RESTATED)

SENSITIVITY
%

EQUITY INCREASE 
(DECREASE)
US$M

RESIDUAL 
EXPOSURE
US$M

SENSITIVITY
%

EQUITY INCREASE 
(DECREASE)
US$M

+10
(10)
+10
(10)
+10
(10)
+10
(10)
+10
(10)
+10
(10)

356
(356)
167
(167)
114
(114)
30
(30)
21
(21)
14
(14)

3,214

1,573

664

303

151

126

+10
(10)
+10
(10)
+10
(10)
+10
(10)
+10
(10)
+10
(10)

321
(321)
157
(157)
66
(66)
30
(30)
15
(15)
13
(13)

 
108

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

Currency translation risk 

QBE is exposed to currency risk in relation to the translation of:

• the ultimate parent entity’s net investments in foreign operations to its functional currency of Australian dollars; and

• all non-US dollar functional currency operations to the Group’s presentation currency of US dollars.

Currency translation risk in relation to QBE’s investment in foreign operations is monitored on an ongoing basis and may be mitigated 

by designation of foreign currency borrowings as a hedge of this risk. Any borrowing that qualifies as a hedging instrument may 

be designated as a hedge of the Australian dollar ultimate parent entity’s net investments in foreign operations and any residual 

exposure to foreign operations in tradeable currencies may be hedged up to the limit specified in the Group risk appetite statement. 

The extent of hedging this exposure is carefully managed to ensure an appropriate balance between currency risk and associated 

risks such as liquidity risk and stability of capital adequacy levels. 

QBE does not ordinarily seek to use derivatives to mitigate currency translation risk on translation to the ultimate parent entity 

functional currency of Australian dollars for the following reasons:

• currency translation gains and losses generally have no cash flow;

• currency translation gains and losses are accounted for in the foreign currency translation reserve (a component of equity) 

and therefore do not impact profit or loss unless the related foreign operation is disposed of; and

• management of translation risk needs to be balanced against the impact on capital requirements and liquidity risk.

QBE may, however, elect to use derivatives to manage currency translation risk in order to preserve capital.

Currency management processes are actively monitored by Group Treasury and involve close senior management scrutiny. 

All hedge transactions are subject to delegated authority levels provided to management, and the levels of exposure are 

reviewed on an ongoing basis. All instruments that are designated as hedges are tested for effectiveness in accordance with 

AASB 9 Financial Instruments.

in note 5.6.1.

Further information on derivatives and borrowings designated as hedges of net investments in foreign operations is provided 

Foreign exchange gains or losses arising on translation of the Group’s foreign operations from the ultimate parent entity’s functional 

currency of Australian dollars to the Group’s US dollar presentation currency are recognised directly in equity in accordance with the 

policy set out in note 1.2.4. The Group cannot hedge this exposure.

The analysis below demonstrates the impact on equity of a 10% strengthening or weakening against the US dollar of the major 

currencies to which QBE is exposed through its net investments in foreign operations. The basis for the sensitivity calculation 

is the Group’s actual residual exposure at the balance date.

EXPOSURE CURRENCY

Australian dollar

Euro

Sterling

New Zealand dollar

Hong Kong dollar

Singapore dollar

2023

2022 (RESTATED)

RESIDUAL 

EXPOSURE

SENSITIVITY

EQUITY INCREASE 

(DECREASE)

RESIDUAL 

EXPOSURE

SENSITIVITY

EQUITY INCREASE 

(DECREASE)

US$M

3,564

1,670

1,144

302

213

137

%

+10

(10)

+10

(10)

+10

(10)

+10

(10)

+10

(10)

+10

(10)

US$M

356

(356)

167

(167)

114

(114)

30

(30)

21

(21)

14

(14)

US$M

3,214

1,573

664

303

151

126

%

+10

(10)

+10

(10)

+10

(10)

+10

(10)

+10

(10)

+10

(10)

US$M

321

(321)

157

(157)

66

(66)

30

(30)

15

(15)

13

(13)

4.5 

Liquidity risk

Overview

Liquidity risk is the risk of having insufficient liquid assets to meet liabilities as they fall due to policyholders and creditors 
or only being able to access liquidity at excessive cost.

QBE’s approach to managing liquidity risk is underpinned by the Group’s liquidity risk appetite which is set by the Board 
and is summarised below.

QBE manages liquidity risk using a number of tools, as follows:

• cash flow targeting;

• maintenance of a minimum level of liquid assets relative to the Group’s liabilities;

• cash flow forecasting; and

• stress testing and contingency planning.

Liquidity is managed across the Group using a number of cash flow forecasting and targeting tools and techniques. Cash flow 
forecasting and targeting are conducted at a legal entity level and involve actively managing operational cash flow requirements.

To supplement the cash flow targeting and to ensure that there are sufficient liquid funds available to meet insurance and investment 
obligations, a minimum percentage of QBE’s liabilities is held, at all times, in cash and liquid securities. QBE also maintains a defined 
proportion of the funds under management in liquid assets. 

QBE actively forecasts cash flow requirements to identify future cash surpluses and shortages to optimise invested cash balances 
and limit unexpected calls from the investment pool. The Group limits the risk of liquidity shortfalls resulting from mismatches in the 
timing of claims payments and receipts of claims recoveries by negotiating cash call clauses in reinsurance contracts and seeking 
accelerated settlements for large reinsurance recoveries.

The following table summarises the maturity profile of the Group’s financial liabilities based on the remaining contractual obligations, 
and includes derivative assets used to hedge contractual undiscounted interest payments on borrowings. Contractual cash flows 
are undiscounted and may not necessarily agree with their carrying amounts. Borrowings and contractual undiscounted interest 
payments are disclosed by reference to the first call date of the borrowings, details of which, including redemption terms, are included 
in note 5.1.

At 31 December 2023
Forward foreign exchange contracts
Other payables
Lease liabilities
Borrowings1
Contractual undiscounted interest payments
Interest rate swaps used to hedge contractual 
undiscounted interest payments
At 31 December 2022 (RESTATED)
Forward foreign exchange contracts
Other payables
Lease liabilities
Borrowings1
Contractual undiscounted interest payments

LESS THAN  
1 YEAR
US$M

13 TO 36 
MONTHS
US$M

37 TO 60 
MONTHS
US$M

OVER 5 
YEARS
US$M

NO FIXED 
TERM
US$M

378
399
59
700
166

– 
31
104
1,165
191

(12)

(20)

256
334
49
406
155

131
11
88
1,000
195

– 
– 
76
735
75

– 

– 
– 
70
863
49

– 
– 
71
205
8

– 

– 
2
94
481
9

– 
2
– 
– 
– 

– 

– 
– 
– 
– 
– 

TOTAL
US$M

378
432
310
2,805
440

(32)

387
347
301
2,750
408

1  Excludes capitalised finance costs of $7 million (2022 $6 million). Redemption is subject to the prior written approval of APRA.

The maturity profile of the Group’s insurance contract liabilities is analysed in note 2.2.6.

109

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110

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

The maturity of the Group’s interest-bearing financial assets is shown in the table below:

INTEREST-BEARING FINANCIAL ASSETS MATURING IN:

LESS THAN 
1 YEAR

13 TO 24 
MONTHS

25 TO 36 
MONTHS

37 TO 48 
MONTHS

49 TO 60 
MONTHS

OVER 5 
YEARS

US$M

% p.a.

US$M

% p.a.

US$M

% p.a.

US$M

% p.a.

9,879
4.8
2,872
4.7

9,911
4.0
1,954
2.4

3,066
4.3
1,363
5.4

2,905
4.5
1,051
4.0

1,999
4.3
1,008
5.6

2,007
4.7
1,110
4.3

1,125
4.3
414
5.3

1,220
5.0
396
4.8

1,262
4.5
159
5.4

887
5.1
436
4.2

3,989
4.3
735
5.7

3,398
4.7
704
5.2

TOTAL

21,320
4.6
6,551
5.1

20,328
4.4
5,651
3.7

At 31 December 2023
Fixed rate
Weighted average interest rate
Floating rate
Weighted average interest rate
At 31 December 2022
Fixed rate
Weighted average interest rate
Floating rate
Weighted average interest rate

4.6 

Operational risk

Overview

Operational risk is the risk of financial loss resulting from inadequate or failed internal processes, people and systems 
or from external events. 

Operational risk can materialise in a number of forms including fraud perpetrated by employees or by external 
parties (e.g. claims fraud or cyber attacks), employment practices (e.g. losses arising from acts inconsistent with 
laws or agreements governing employment, employee health or safety, or from diversity or discrimination events 
involving internal employees), improper business practices (e.g. failure to meet professional obligations or issues 
with the nature or design of an insurance product), business disruption and system failures, or business and transaction 
processing failures.

QBE manages operational risk through setting policy, minimum standards, and process and system controls, including 
effective segregation of duties, access controls, authorisations and reconciliation procedures, business continuity 
management, fraud management, information security and physical security.

QBE identifies, assesses and manages operational risk through the: 

• risk and control self-assessment process, which identifies and assesses the key risks to achieving business objectives and 

is conducted at the business unit level; 

• operational risk appetite statement, which sets out the nature and level of risk that the Board and Group Executive Committee 

are willing to take in pursuit of the organisation’s objectives. The operational risk appetite statement is measured through 
an assessment of the control environment, key risk indicators, issues and incidents; and 

• scenario analysis process, which assesses the impact of potentially extreme scenarios and the appropriateness of our 

contingency planning.

Key residual risks from the above processes are monitored by the Executive Risk Committee.

110

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

4. 

RISK MANAGEMENT

The maturity of the Group’s interest-bearing financial assets is shown in the table below:

4.7 

Compliance risk

Overview

Compliance risk is the risk of legal or regulatory penalties, financial loss or impacts and customer detriment resulting 
from non-compliance with laws, regulations or conduct standards. 

QBE’s approach to managing compliance risk is underpinned by the Group Compliance Risk Policy which is aligned 
to the Group RMS and risk appetite set by the Board and is summarised below.

QBE manages compliance risk through the following approach:

• governance arrangements that establish accountability, responsibility and authority in relation to the management of compliance risk;

• a culture based on honesty, integrity and respect that is embedded as part of QBE DNA and the Code of Ethics and Conduct;

• stakeholder management to maintain pro-active and co-operative relationships with lawmakers, regulators and other relevant 

external parties;

• strategic priorities and objectives that are aligned to risk appetites set by the Board; and

• people, systems and processes to support effective compliance risk management.

QBE’s approach to compliance management is subject to continuous review and improvement to recognise changes in the regulatory 
and legal environment and industry, customer and community expectations.

4.8 

Group risk

Overview

Group risk is the risk to a division arising specifically from being part of the wider Group, including financial impact 
and loss of support from the Company.

QBE’s approach to managing Group risk is supported by divisional Group risk appetite statements where divisions define 
the Board-approved plan to address identified Group risk exposures. Sources of Group risk are summarised below. 

Sources of Group risk may include:

• shared global reinsurance program, including counterparty risk of Equator Re;

• intercompany loans and receivables; 

• contagion reputational risk;

• credit agency dependency;

• use of Group functions where there is a global operating model in place;

• use of QBE’s internal asset management function – Group Investments;

• Group initiatives or decisions with a material impact on one or more divisions; and

• liquidity and central foreign exchange management.

INTEREST-BEARING FINANCIAL ASSETS MATURING IN:

LESS THAN 

1 YEAR

13 TO 24 

MONTHS

25 TO 36 

MONTHS

37 TO 48 

MONTHS

49 TO 60 

MONTHS

OVER 5 

YEARS

TOTAL

1,125

1,262

3,989

21,320

US$M

% p.a.

US$M

% p.a.

US$M

% p.a.

US$M

% p.a.

9,879

4.8

2,872

4.7

9,911

4.0

1,954

2.4

3,066

4.3

1,363

5.4

2,905

4.5

1,051

4.0

1,999

4.3

1,008

5.6

2,007

4.7

1,110

4.3

4.3

414

5.3

1,220

5.0

396

4.8

4.5

159

5.4

887

5.1

436

4.2

4.3

735

5.7

4.7

704

5.2

4.6

6,551

5.1

4.4

5,651

3.7

3,398

20,328

At 31 December 2023

Fixed rate

Weighted average interest rate

Floating rate

Weighted average interest rate

At 31 December 2022

Fixed rate

Weighted average interest rate

Floating rate

Weighted average interest rate

4.6 

Operational risk

Overview

or from external events. 

Operational risk is the risk of financial loss resulting from inadequate or failed internal processes, people and systems 

Operational risk can materialise in a number of forms including fraud perpetrated by employees or by external 

parties (e.g. claims fraud or cyber attacks), employment practices (e.g. losses arising from acts inconsistent with 

laws or agreements governing employment, employee health or safety, or from diversity or discrimination events 

involving internal employees), improper business practices (e.g. failure to meet professional obligations or issues 

with the nature or design of an insurance product), business disruption and system failures, or business and transaction 

processing failures.

QBE manages operational risk through setting policy, minimum standards, and process and system controls, including 

effective segregation of duties, access controls, authorisations and reconciliation procedures, business continuity 

management, fraud management, information security and physical security.

QBE identifies, assesses and manages operational risk through the: 

• risk and control self-assessment process, which identifies and assesses the key risks to achieving business objectives and 

is conducted at the business unit level; 

• operational risk appetite statement, which sets out the nature and level of risk that the Board and Group Executive Committee 

are willing to take in pursuit of the organisation’s objectives. The operational risk appetite statement is measured through 

an assessment of the control environment, key risk indicators, issues and incidents; and 

• scenario analysis process, which assesses the impact of potentially extreme scenarios and the appropriateness of our 

contingency planning.

Key residual risks from the above processes are monitored by the Executive Risk Committee.

QBE manages Group risk through various systems, controls and processes, including the management of reinsurance arrangements, 
use of intercompany transactions and balances accounting guidance, transfer pricing guidelines, investment management 
agreements, capital planning and assessments of the use of Group functions, Group initiatives and contagion reputational events.

n
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111

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112

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

Overview

QBE’s objective in managing capital is to maintain an optimal balance between debt and equity in order to reduce the 
overall cost of capital while satisfying the capital adequacy requirements of regulators and rating agencies, providing 
financial security for our policyholders and continuing to provide an adequate return to shareholders.

The Company is listed on the Australian Securities Exchange and its share capital is denominated in Australian dollars. 
The Group also accesses international debt markets to diversify its funding base and maintain an appropriate amount 
of leverage. Borrowings are diversified across currencies and tenure.

Details of the Group’s approach to capital risk management are disclosed in note 4.1.

5.1 

Borrowings

FINAL MATURITY DATE

ISSUE DATE

PRINCIPAL AMOUNT

Senior debt
25 May 2023

Subordinated debt
25 August 2036
13 September 2038
26 October 2038
28 June 2039
24 November 2043
2 December 2044
12 November 2045
17 June 2046

25 September 2017

$6 million1

25 August 2020
13 September 2021
19 October 2023
21 June 2023
21 November 2016
2 December 2014
12 November 2015
17 June 2016

A$500 million 2
£400 million
A$330 million
A$300 million
$400 million/A$689 million 2
$700 million/A$1,169 million 2
$300 million
$524 million

Total borrowings 3
Amounts expected to be settled within 12 months 4
Amounts expected to be settled in greater than 12 months 4
Total borrowings

1  The senior notes were redeemed on 24 May 2023.
2  Details of related hedging activity are included in note 5.6.1.
3  $2 million of finance costs (2022 nil) were capitalised during the year.
4  Redemption of the securities is subject to the prior written approval of APRA.

2023
US$M

– 

– 

340
508
224
204
– 
699
300
523
2,798
2,798
699
2,099
2,798

2022
US$M

6

6

338
478
– 
– 
400
699
300
523
2,738
2,744
406
2,338
2,744

112

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

Overview

QBE’s objective in managing capital is to maintain an optimal balance between debt and equity in order to reduce the 

overall cost of capital while satisfying the capital adequacy requirements of regulators and rating agencies, providing 

financial security for our policyholders and continuing to provide an adequate return to shareholders.

The Company is listed on the Australian Securities Exchange and its share capital is denominated in Australian dollars. 

The Group also accesses international debt markets to diversify its funding base and maintain an appropriate amount 

of leverage. Borrowings are diversified across currencies and tenure.

Details of the Group’s approach to capital risk management are disclosed in note 4.1.

5.1 

Borrowings

Senior debt

25 May 2023

Subordinated debt

25 August 2036

13 September 2038

26 October 2038

28 June 2039

24 November 2043

2 December 2044

12 November 2045

17 June 2046

Total borrowings 3

25 September 2017

$6 million1

25 August 2020

13 September 2021

19 October 2023

21 June 2023

21 November 2016

2 December 2014

12 November 2015

17 June 2016

A$500 million 2

£400 million

A$330 million

A$300 million

$400 million/A$689 million 2

$700 million/A$1,169 million 2

$300 million

$524 million

– 

– 

340

508

224

204

– 

699

300

523

2,798

2,798

699

2,099

2,798

6

6

338

478

– 

– 

400

699

300

523

2,738

2,744

406

2,338

2,744

Amounts expected to be settled within 12 months 4

Amounts expected to be settled in greater than 12 months 4

Total borrowings

1  The senior notes were redeemed on 24 May 2023.

2  Details of related hedging activity are included in note 5.6.1.

3  $2 million of finance costs (2022 nil) were capitalised during the year.

4  Redemption of the securities is subject to the prior written approval of APRA.

Subordinated debt key terms 

Subordinated debt due 2036

Interest is payable quarterly in arrears at a rate equal to the three-month BBSW rate plus a margin of 2.75% per annum.

Subordinated debt due 2038 

For the sterling denominated debt, interest is payable semi-annually in arrears at a fixed rate of 2.5% per annum until 13 September 2028. 
The rate will reset in 2028 and 2033 to a rate calculated by reference to the then five-year gilt rate plus a margin of 2.061% per annum. 

For the Australian dollar denominated debt, interest is payable quarterly in arrears at a rate equal to the three-month BBSW rate plus 
a margin of 2.55% per annum.

Subordinated debt due 2039

Interest is payable quarterly in arrears at a rate equal to the three-month BBSW rate plus a margin of 3.10% per annum.

Subordinated debt due 2043

The securities were redeemed on 24 November 2023. Interest was payable semi-annually in arrears at a fixed rate of 7.50% per annum. 

Subordinated debt due 2044

Interest is payable semi-annually in arrears at a fixed rate of 6.75% per annum until 2 December 2024, at which time the rate will reset 
to a 10-year mid-market swap rate plus a margin of 4.3% per annum. The rate will reset again, on the same basis, on 2 December 2034.

FINAL MATURITY DATE

ISSUE DATE

PRINCIPAL AMOUNT

2023

US$M

2022

US$M

Subordinated debt due 2045

Interest is payable semi-annually in arrears at a fixed rate of 6.1% per annum until 12 November 2025, at which time the rate will reset to 
a 10-year mid-market swap rate plus a margin of 3.993% per annum. The rate will reset again, on the same basis, on 12 November 2035.

Subordinated debt due 2046

Interest is payable semi-annually in arrears at a fixed rate of 5.875% per annum until 17 June 2026. The rate will reset in 2026 and 
2036 to a rate calculated by reference to the then 10-year mid-market swap rate plus a margin of 4.395% per annum. 

Deferral of interest

QBE has an option to defer payment of interest in certain circumstances and such deferral will not constitute an event of default for 
securities due 2036, 2038, 2039, 2044, 2045 and 2046.

Redemption terms 

’

The securities are redeemable at the option of QBE, with the prior written approval of APRA, at any time in the event of certain tax 
and regulatory events and on: 

• 25 August 2026, 26 October 2028 and 28 June 2029 and each interest payment date thereafter for Australian dollar denominated 

securities due 2036, 2038 and 2039 respectively;

• any business day within the six-month period up to and including the first reset date of 13 September 2028 and on each reset date 

thereafter for sterling securities due 2038; and

• each reset date for securities due 2044, 2045 and 2046.

Conversion terms 

The securities due 2036, 2038, 2039, 2044, 2045 and 2046 must be converted into a variable number of the Company’s ordinary 
shares, or written off, if APRA determines QBE to be non-viable. The conversion rate is subject to a price floor of 20% of the VWAP 
of the shares in the five trading days before the date of issue of the securities.

Security arrangements

The claims of bondholders pursuant to the subordinated debt will be subordinated in right of payment to the claims of all senior creditors. 

How we account for the numbers

Borrowings are initially measured at fair value net of transaction costs directly attributable to the transaction and 
are subsequently measured at amortised cost. Any difference between the proceeds and the redemption amount 
is recognised through profit or loss over the period of the financial liability using the effective interest method.

113

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114

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.1.1 

Fair value of borrowings

Senior debt
Subordinated debt
Total fair value of borrowings

2023
US$M

– 
2,726
2,726

2022
US$M

6
2,561
2,567

Consistent with other financial instruments, QBE is required to disclose the basis of valuation with reference to the fair value hierarchy 
which is explained in detail in note 3.2.1. The fair value of the Group’s borrowings is categorised as level 2 in the fair value hierarchy. 
Fixed and floating rate securities are priced using broker quotes and comparable prices for similar instruments in active markets. 
Where no active market exists, floating rate resettable notes are priced at par plus accrued interest.

5.1.2 

Financing and other costs

Interest expense on borrowings 
Other costs 
Total financing and other costs

5.1.3  Movement in borrowings

At 1 January
Net changes from financing cash flows
Other non-cash changes
Foreign exchange
At 31 December

5.2 

Cash and cash equivalents

Fixed interest rate
Floating interest rate

Restrictions on use

2023
US$M

169
63
232

2023
US$M

2,744
(1)
2
53
2,798

2023
US$M

18
1,348
1,366

2022
US$M

166
79
245

2022
US$M

3,268
(412)
2
(114)
2,744

2022
US$M

1
832
833

Included in cash and cash equivalents are amounts totalling $113 million (2022 $71 million) which are held in Lloyd’s syndicate trust 
funds. In order to conduct underwriting business within some territories, Lloyd’s syndicates are required to lodge assets in locally 
regulated trust funds. Under Lloyd’s byelaws, these amounts can only be used to pay claims and allowable expenses of the syndicates 
and cannot be withdrawn from the trust funds until allowed to be distributed as profit once annual solvency requirements are met.

Also included in cash and cash equivalents is $160 million (2022 $126 million) relating to policyholder trust accounts in the United 
Kingdom which can only be accessed by QBE in certain circumstances, such as when QBE is owed a deductible by the policyholder 
on a claim. The Group recognises a corresponding payable in relation to these until such an event occurs.

QBE has operations in many countries which have foreign exchange controls and regulations. These controls and regulations can 
vary from simple reporting requirements to outright prohibition of movement of funds without explicit prior central bank or regulator 
approval. The impact of these controls and regulations may restrict the Group’s capacity to repatriate capital and/or profits.

How we account for the numbers

Cash and cash equivalents include cash at bank and on hand and deposits at call which are readily convertible to cash 
on hand and which are used for operational cash requirements. Amounts in cash and cash equivalents are the same 
as those included in the consolidated statement of cash flows.

The reconciliation of profit or loss after income tax to net cash flows from operating activities is included in note 8.4.

Consistent with other financial instruments, QBE is required to disclose the basis of valuation with reference to the fair value hierarchy 

which is explained in detail in note 3.2.1. The fair value of the Group’s borrowings is categorised as level 2 in the fair value hierarchy. 

Fixed and floating rate securities are priced using broker quotes and comparable prices for similar instruments in active markets. 

Where no active market exists, floating rate resettable notes are priced at par plus accrued interest.

114

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.1.1 

Fair value of borrowings

Senior debt

Subordinated debt

Total fair value of borrowings

5.1.2 

Financing and other costs

Interest expense on borrowings 

Other costs 

Total financing and other costs

5.1.3  Movement in borrowings

At 1 January

Net changes from financing cash flows

Other non-cash changes

Foreign exchange

At 31 December

5.2 

Cash and cash equivalents

Fixed interest rate

Floating interest rate

Restrictions on use

2023

US$M

– 

2,726

2,726

2023

US$M

169

63

232

2023

US$M

2,744

(1)

2

53

2,798

2023

US$M

18

1,348

1,366

2022

US$M

6

2,561

2,567

2022

US$M

166

79

245

2022

US$M

3,268

(412)

2

(114)

2,744

2022

US$M

1

832

833

Included in cash and cash equivalents are amounts totalling $113 million (2022 $71 million) which are held in Lloyd’s syndicate trust 

funds. In order to conduct underwriting business within some territories, Lloyd’s syndicates are required to lodge assets in locally 

regulated trust funds. Under Lloyd’s byelaws, these amounts can only be used to pay claims and allowable expenses of the syndicates 

and cannot be withdrawn from the trust funds until allowed to be distributed as profit once annual solvency requirements are met.

Also included in cash and cash equivalents is $160 million (2022 $126 million) relating to policyholder trust accounts in the United 

Kingdom which can only be accessed by QBE in certain circumstances, such as when QBE is owed a deductible by the policyholder 

on a claim. The Group recognises a corresponding payable in relation to these until such an event occurs.

QBE has operations in many countries which have foreign exchange controls and regulations. These controls and regulations can 

vary from simple reporting requirements to outright prohibition of movement of funds without explicit prior central bank or regulator 

approval. The impact of these controls and regulations may restrict the Group’s capacity to repatriate capital and/or profits.

How we account for the numbers

Cash and cash equivalents include cash at bank and on hand and deposits at call which are readily convertible to cash 

on hand and which are used for operational cash requirements. Amounts in cash and cash equivalents are the same 

as those included in the consolidated statement of cash flows.

The reconciliation of profit or loss after income tax to net cash flows from operating activities is included in note 8.4.

5.3 

Contributed equity and reserves

Overview

Contributed equity comprises share capital and capital notes. 

Ordinary shares in the Company rank after all creditors, have no par value and entitle the holder to participate 
in dividends and the proceeds on winding up of the Company in proportion to the number of shares held.

Capital notes are Additional Tier 1 instruments with discretionary and non-cumulative distributions, and no fixed 
redemption date. 

5.3.1 

Contributed equity

Issued ordinary shares, fully paid
Capital notes
Contributed equity

Share capital

Issued ordinary shares, fully paid at 1 January
Shares issued under the Employee Share and Option Plan
Shares issued under the Dividend Reinvestment Plan
Shares issued under the Bonus Share Plan
Foreign exchange
Issued ordinary shares, fully paid at 31 December
Shares notified to the Australian Securities Exchange
Less: plan shares subject to non-recourse loans,  
derecognised under accounting standards
Issued ordinary shares, fully paid at 31 December

Capital notes

ISSUE DATE 

12 May 2020
16 July 20201

PRINCIPAL AMOUNT

$500 million
$400 million

2023

NUMBER OF 
SHARES
MILLIONS

1,485
4
5
– 
– 
1,494
1,494

– 
1,494

US$M 

8,356
36
49
– 
54
8,495
8,497

(2)
8,495

2023
US$M

8,495
886
9,381

2022

NUMBER OF 
SHARES
MILLIONS

1,477
4
4
– 
– 
1,485
1,485

– 
1,485

2023
US$M

493
393
886

2022
US$M

8,356
886
9,242

US$M 

8,891
29
36
– 
(600)
8,356
8,358

(2)
8,356

2022
US$M

493
393
886

1   In July 2020, the terms of these instruments (originally issued in November 2017) were amended such that the notes are written off at a point 

of non-viability, as determined by APRA, with no possibility of conversion into ordinary shares of the Company. This resulted in the classification 
of these instruments as equity.

Key terms 

Capital note issued 12 May 2020

Distributions of 5.875% per annum are paid semi-annually in arrears until 12 May 2025. The rate will reset in 2025 and on every fifth 
anniversary thereafter to a rate calculated by reference to the then five-year US Treasury rate plus a margin of 5.513% per annum. 

Capital note issued 16 July 2020

Distributions of 5.250% per annum are paid semi-annually in arrears until 16 May 2025. The rate will reset in 2025 and on every fifth 
anniversary thereafter to a rate calculated by reference to the then five-year US Treasury rate plus a margin of 3.047% per annum. 

Redemption terms 
The notes are redeemable at the option of QBE, with the prior written approval of APRA, on each interest reset date or at any time in the 
event of certain tax or regulatory events. In the event that APRA was to declare a point of non-viability, the notes would be written off.

115

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116

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.3.2  Reserves

Owner occupied property revaluation reserve1
At 1 January
At 31 December
Cash flow hedge reserve 2
At 1 January
Hedging amounts recognised in other comprehensive income
Hedging amounts reclassified to profit or loss
Taxation
At 31 December
Cost of hedging reserve 3
At 1 January
Amounts recognised in other comprehensive income
Amounts reclassified to profit or loss
Taxation
At 31 December
Foreign currency translation reserve 4
At 1 January
Net movement on translation
Net movement on hedging transactions
At 31 December
Share-based payment reserve 5
At 1 January
Options and conditional rights expense
Transfers from reserve on vesting of options and conditional rights
Foreign exchange
At 31 December
Premium on purchase of non-controlling interests 6
At 1 January
Foreign exchange
At 31 December
Total reserves at 31 December

2023
US$M

RESTATED 
2022
US$M

1
1

22
10
(13)
1
20

6
(4)
(1)
1
2

(1,542)
93
(9)
(1,458)

162
42
(35)
5
174

(12)
– 
(12)
(1,273)

1
1

– 
104
(72)
(10)
22

5
3
(2)
– 
6

(1,765)
224
(1)
(1,542)

164
39
(31)
(10)
162

(13)
1
(12)
(1,363)

Each of the above reserves relates to the following:
1  Fair value movements in the carrying value of owner occupied property.
2  Cash flow hedges of foreign exchange and interest rate risk, the accounting policies for which are disclosed in note 5.6.1. 
3  Cost of hedging elections as described in note 5.6.1.
4  Exchange gains and losses arising on translation of foreign controlled entities and related hedging instruments, the accounting policies 

for which are disclosed in note 5.6.1.

5  Equity-settled share-based payment awards.
6  Movements in ownership interests in controlled entities that do not result in a loss of control and represent the difference between the 

amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received.

116

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.3.2  Reserves

Owner occupied property revaluation reserve1

At 1 January

At 31 December

Cash flow hedge reserve 2

At 1 January

Taxation

At 31 December

Cost of hedging reserve 3

At 1 January

Hedging amounts recognised in other comprehensive income

Hedging amounts reclassified to profit or loss

Amounts recognised in other comprehensive income

Amounts reclassified to profit or loss

Taxation

At 31 December

At 1 January

Foreign currency translation reserve 4

Net movement on translation

Net movement on hedging transactions

At 31 December

Share-based payment reserve 5

At 1 January

Options and conditional rights expense

Foreign exchange

At 31 December

At 1 January

Foreign exchange

At 31 December

Total reserves at 31 December

Transfers from reserve on vesting of options and conditional rights

Premium on purchase of non-controlling interests 6

2023

US$M

RESTATED 

2022

US$M

1

1

(13)

22

10

1

20

6

(4)

(1)

1

2

(1,542)

93

(9)

(1,458)

162

42

(35)

5

174

(12)

– 

(12)

1

1

– 

104

(72)

(10)

22

5

3

(2)

– 

6

164

39

(31)

(10)

162

(13)

1

(12)

(1,765)

224

(1)

(1,542)

5.4 

Dividends

Overview

Our dividend policy is designed to ensure that we reward shareholders relative to cash profit and maintain sufficient 
capital for future investment and growth of the business.

Dividend per share (Australian cents)
Franking percentage
Franked amount per share (Australian cents)
Dividend payout (A$M)
Payment date

2023

INTERIM

14
10%
1.4 
209
22 September 2023

2022

FINAL

INTERIM

30 
10%
3.0 
447 
14 April 2023

9 
10%
0.9 
133 
23 September 2022

On 16 February 2024, the directors declared a 10% franked final dividend of 48 Australian cents per share payable on 12 April 2024. 
The final dividend payout is A$717 million (2022 A$447 million).

Previous year final dividend on ordinary shares – 10% franked (2021 10% franked)
Interim dividend on ordinary shares – 10% franked (2022 10% franked)
Bonus Share Plan dividend forgone
Total dividend paid
 .

Dividend Reinvestment and Bonus Share Plans

2023
US$M

300
135
(3)
432

2022
US$M

 210 
 87 
 (3)
 294 

The Company operates a Dividend Reinvestment Plan (DRP) and a Bonus Share Plan (BSP) which allow equity holders to receive 
their dividend entitlement in the form of ordinary shares of the Company.

Bonus Share Plan dividend forgone

The amount paid in dividends during the year has been reduced as a result of certain eligible shareholders participating in the BSP 
and forgoing all or part of their right to dividends. These shareholders were issued ordinary shares under the BSP. During the year, 
360,792 (2022 349,232) ordinary shares were issued under the BSP.

Each of the above reserves relates to the following:

1  Fair value movements in the carrying value of owner occupied property.

2  Cash flow hedges of foreign exchange and interest rate risk, the accounting policies for which are disclosed in note 5.6.1. 

4  Exchange gains and losses arising on translation of foreign controlled entities and related hedging instruments, the accounting policies 

3  Cost of hedging elections as described in note 5.6.1.

for which are disclosed in note 5.6.1.

5  Equity-settled share-based payment awards.

6  Movements in ownership interests in controlled entities that do not result in a loss of control and represent the difference between the 

amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received.

(1,273)

(1,363)

Franking credits

The franking account balance on a tax paid basis at 31 December 2023 was a surplus of A$46 million (2022 A$54 million). 

The unfranked part of the dividend is declared to be conduit foreign income. For shareholders not resident in Australia, the dividend 
will not be subject to Australian withholding tax.

117

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118

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.5 

Earnings per share

Overview

Earnings per share (EPS) is the amount of profit or loss after income tax attributable to each share. Diluted EPS adjusts 
the EPS for the impact of shares that are not yet issued but which may be in the future, such as shares potentially 
issuable from convertible notes, options and employee share-based payments plans.

For profit after income tax 
Basic earnings per share
Diluted earnings per share

2023
US CENTS

87.6
87.0

RESTATED 
2022
US CENTS

36.2 
36.0 

5.5.1   Reconciliation of earnings used for earnings per share measures
Earnings per share is based on profit or loss after income tax attributable to ordinary equity holders of the Company, as follows:

Profit after income tax attributable to ordinary equity holders of the Company
Less: distributions paid on capital notes classified as equity (note 5.3.1)
Profit used in calculating basic and diluted earnings per share

2023
US$M

 1,355 
(50)
 1,305 

RESTATED 
2022
US$M

 587 
(50)
 537 

5.5.2  

 Reconciliation of weighted average number of ordinary shares used for earnings 
per share measures

Weighted average number of ordinary shares on issue and used as the denominator 
in calculating basic earnings per share 
Weighted average number of dilutive potential ordinary shares issued under the Employee 
Share and Option Plan
Weighted average number of ordinary shares used as the denominator in calculating diluted 
earnings per share

2023
NUMBER OF 
SHARES
MILLIONS

2022
NUMBER OF 
SHARES
MILLIONS

1,490

10

1,500

1,482

11

1,493

How we account for the numbers

Basic earnings per share is calculated by dividing profit or loss after income tax attributable to members of the 
Company, adjusted for the cost of servicing capital notes classified as equity, by the weighted average number 
of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued 
during the year.

Diluted earnings per share adjusts the weighted average number of shares to include dilutive potential ordinary shares 
and instruments with mandatory conversion features. As there are no impacts on interest and other financing costs from 
such instruments, diluted earnings per share utilises the same earnings figure used in the determination of basic earnings 
per share.

118

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.5 

Earnings per share

Overview

Earnings per share (EPS) is the amount of profit or loss after income tax attributable to each share. Diluted EPS adjusts 

the EPS for the impact of shares that are not yet issued but which may be in the future, such as shares potentially 

issuable from convertible notes, options and employee share-based payments plans.

2023

US CENTS

87.6

87.0

2023

US$M

 1,355 

(50)

 1,305 

RESTATED 

2022

US CENTS

36.2 

36.0 

RESTATED 

2022

US$M

 587 

(50)

 537 

2023

NUMBER OF 

SHARES

MILLIONS

2022

NUMBER OF 

SHARES

MILLIONS

1,490

10

1,500

1,482

11

1,493

For profit after income tax 

Basic earnings per share

Diluted earnings per share

5.5.1   Reconciliation of earnings used for earnings per share measures

Earnings per share is based on profit or loss after income tax attributable to ordinary equity holders of the Company, as follows:

Profit after income tax attributable to ordinary equity holders of the Company

Less: distributions paid on capital notes classified as equity (note 5.3.1)

Profit used in calculating basic and diluted earnings per share

5.5.2  

 Reconciliation of weighted average number of ordinary shares used for earnings 

per share measures

Weighted average number of ordinary shares on issue and used as the denominator 

in calculating basic earnings per share 

Weighted average number of dilutive potential ordinary shares issued under the Employee 

Weighted average number of ordinary shares used as the denominator in calculating diluted 

Share and Option Plan

earnings per share

How we account for the numbers

Basic earnings per share is calculated by dividing profit or loss after income tax attributable to members of the 

Company, adjusted for the cost of servicing capital notes classified as equity, by the weighted average number 

of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued 

during the year.

per share.

Diluted earnings per share adjusts the weighted average number of shares to include dilutive potential ordinary shares 

and instruments with mandatory conversion features. As there are no impacts on interest and other financing costs from 

such instruments, diluted earnings per share utilises the same earnings figure used in the determination of basic earnings 

5.6 

Derivatives 

Overview

Derivatives may be used as a tool to hedge the Group’s foreign exchange exposures. Each controlled entity manages 
operational foreign exchange volatility by matching liabilities with assets of the same currency, as far as practicable. 
Forward foreign exchange contracts are used to manage residual currency exposures, with both the foreign exchange 
gains or losses on translation of the exposure and the mark-to-market of related derivatives reported through profit 
or loss. Forward foreign exchange contracts may also be utilised in cash flow hedging of foreign currency borrowings 
and/or hedging exposure to net investments in foreign operations (NIFO). 

Interest rate swaps and swaptions are used to hedge exposure to interest rate movements on the Group’s borrowings. 

Refer to note 4.4 for additional information relating to QBE’s approach to managing interest rate risk and foreign 
exchange risk.

The Group’s exposure to treasury derivatives at the balance date determined by reference to the functional currency of the relevant 
controlled entity is set out in the table below:

EXPOSURE
US$M

2023

FAIR VALUE 
ASSET
US$M 

FAIR VALUE 
LIABILITY
US$M 

EXPOSURE
US$M

2022

FAIR VALUE 
ASSET
US$M 

FAIR VALUE 
LIABILITY
US$M 

Forward foreign exchange contracts  
not in designated hedges
Forward foreign exchange contracts 
used in cash flow hedges
Forward foreign exchange contracts 
used in NIFO hedges
Interest rate swaps
Interest rate swaptions

1,249

(854)

806
341
– 

218

– 

5
27
– 
250

248

105

20
– 
– 
373

990

(1,404)

1,081
– 
339

251

– 

2
– 
31
284

172

186

29
– 
– 
387

The fair value of these derivatives are categorised as level 2 in the fair value hierarchy. They are fair valued using present value 
techniques utilising observable market data, broker quotes and/or comparable prices for similar instruments in active markets.

How we account for the numbers

Derivatives are initially recognised at fair value, determined as the cost of acquisition excluding transaction costs, and 
remeasured to fair value at each reporting date. Remeasurements are recognised in profit or loss at each reporting date, 
unless the derivative is designated as part of a qualifying hedge relationship (refer to note 5.6.1).

119

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120

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.6.1  Designated hedges
The Group’s material designated hedge relationships are analysed below by risk category and are accounted for with reference 
to the accounting policies set out at the end of this note. Hedging ratios, being the relationship between the quantity of the hedging 
instrument and the quantity of the hedged item, are 1:1 as the nominal values of hedging instruments match those of the hedged 
items. Any ineffectiveness arising from factors such as credit risk is not expected to be material. Amounts recognised in equity 
or reclassified to profit or loss are disclosed in note 5.3.2.

Cash flow hedges of borrowings

At the balance date, forward foreign exchange contracts were used to hedge foreign currency risk associated with highly probable 
forecast transactions in relation to $700 million of subordinated debt maturing in 2044. Foreign currency risk on future coupons and 
the principal amount is hedged up to and including the first call date of the subordinated debt in 2024. Similarly, interest rate swaps 
were used to hedge interest rate risk in relation to coupons on A$500 million of subordinated debt maturing in 2036, following the 
exercise of interest rate swaptions during the year. The interest rate swaps hedge coupon payments from the exercise date to the 
first call date in August 2026. These hedges were put in place to more effectively manage currency exposures and costs of funding. 

Only the spot components of forward foreign exchange contracts, the fair value of interest rate swaps and the intrinsic value 
of interest rate swaptions prior to exercise, are designated in hedge relationships. For forward foreign exchange contracts, 
reclassifications of hedging gains and losses to profit or loss are included in foreign exchange (refer to note 3.1), consistent with 
the currency movement of the hedged borrowings. For the interest rate swaps, reclassifications of any cumulative hedging gains 
or losses to profit or loss occur as related coupon payments are made during the period from August 2023 to August 2026. A ‘cost 
of hedging’ election was made in respect of the forward foreign exchange contracts and interest rate swaptions, as described below, 
and amortisation of the forward and currency basis components is included in financing costs (refer to note 5.1.2) where they relate 
to hedged coupons, or in foreign exchange (refer to note 3.1) where they relate to principal amounts.

The timing of the nominal amounts of the hedging instruments and corresponding average rates, if applicable, are provided in the 
following table: 

Forward foreign exchange contracts
Buy US$M/ 
   Sell A$M

Nominal amounts
Average forward rate
Interest rate swaps
Nominal amounts
Average fixed interest rate

US$/A$

A$M

%

2023

MATURING IN:

2022

MATURING IN:

LESS THAN 
1 YEAR

1 TO 5 
YEARS

OVER 5 
YEARS

LESS THAN 
1 YEAR

1 TO 5 
YEARS

OVER 5 
YEARS

747/1,251
0.60

– 
– 

– 
– 

500
0.80

– 
– 

– 
– 

477/819
0.58

747/1,251
0.60

– 
– 

– 
– 

– 
– 

– 
– 

Hedges of currency risk relating to translation of net investments in foreign operations

At the balance date, forward foreign exchange contracts and borrowings were designated as NIFO hedges. Only the spot 
components of the forward foreign exchange contracts are designated as being in hedge relationships. The forward and currency 
basis components are included in foreign exchange (refer to note 3.1), with a ‘cost of hedging’ election made in respect of US dollar 
NIFO hedges, as described below. Cumulative hedging gains or losses recognised in equity are recycled to profit or loss only 
on disposal of the foreign operation. 

120

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

5. 

CAPITAL STRUCTURE

5.6.1  Designated hedges

The Group’s material designated hedge relationships are analysed below by risk category and are accounted for with reference 

to the accounting policies set out at the end of this note. Hedging ratios, being the relationship between the quantity of the hedging 

instrument and the quantity of the hedged item, are 1:1 as the nominal values of hedging instruments match those of the hedged 

items. Any ineffectiveness arising from factors such as credit risk is not expected to be material. Amounts recognised in equity 

or reclassified to profit or loss are disclosed in note 5.3.2.

Cash flow hedges of borrowings

At the balance date, forward foreign exchange contracts were used to hedge foreign currency risk associated with highly probable 

forecast transactions in relation to $700 million of subordinated debt maturing in 2044. Foreign currency risk on future coupons and 

the principal amount is hedged up to and including the first call date of the subordinated debt in 2024. Similarly, interest rate swaps 

were used to hedge interest rate risk in relation to coupons on A$500 million of subordinated debt maturing in 2036, following the 

exercise of interest rate swaptions during the year. The interest rate swaps hedge coupon payments from the exercise date to the 

first call date in August 2026. These hedges were put in place to more effectively manage currency exposures and costs of funding. 

Only the spot components of forward foreign exchange contracts, the fair value of interest rate swaps and the intrinsic value 

of interest rate swaptions prior to exercise, are designated in hedge relationships. For forward foreign exchange contracts, 

reclassifications of hedging gains and losses to profit or loss are included in foreign exchange (refer to note 3.1), consistent with 

the currency movement of the hedged borrowings. For the interest rate swaps, reclassifications of any cumulative hedging gains 

or losses to profit or loss occur as related coupon payments are made during the period from August 2023 to August 2026. A ‘cost 

of hedging’ election was made in respect of the forward foreign exchange contracts and interest rate swaptions, as described below, 

and amortisation of the forward and currency basis components is included in financing costs (refer to note 5.1.2) where they relate 

to hedged coupons, or in foreign exchange (refer to note 3.1) where they relate to principal amounts.

The timing of the nominal amounts of the hedging instruments and corresponding average rates, if applicable, are provided in the 

following table: 

2023

MATURING IN:

2022

MATURING IN:

LESS THAN 

1 YEAR

1 TO 5 

YEARS

OVER 5 

YEARS

LESS THAN 

1 YEAR

1 TO 5 

YEARS

OVER 5 

YEARS

Forward foreign exchange contracts

Nominal amounts

Average forward rate

Interest rate swaps

Nominal amounts

Average fixed interest rate

Buy US$M/ 

   Sell A$M

US$/A$

747/1,251

0.60

A$M

%

– 

– 

– 

– 

500

0.80

– 

– 

– 

– 

477/819

0.58

747/1,251

0.60

– 

– 

– 

– 

– 

– 

– 

– 

Hedges of currency risk relating to translation of net investments in foreign operations

At the balance date, forward foreign exchange contracts and borrowings were designated as NIFO hedges. Only the spot 

components of the forward foreign exchange contracts are designated as being in hedge relationships. The forward and currency 

basis components are included in foreign exchange (refer to note 3.1), with a ‘cost of hedging’ election made in respect of US dollar 

NIFO hedges, as described below. Cumulative hedging gains or losses recognised in equity are recycled to profit or loss only 

on disposal of the foreign operation. 

The timing of cash flows relating to the hedging instruments and corresponding average forward rates, if applicable, are provided 
in the following table, with borrowings being disclosed by reference to their first call dates where available (refer to note 5.1): 

2023

MATURING IN:

2022

MATURING IN:

LESS THAN 
1 YEAR

1 TO 5 
YEARS

OVER 5 
YEARS

LESS THAN 
1 YEAR

1 TO 5 
YEARS

OVER 5 
YEARS

Debt instruments used in US dollar NIFO hedges
Subordinated debt
Senior debt
Debt instruments used in sterling NIFO hedges
Subordinated debt
Forward foreign exchange contracts used in Hong Kong dollar NIFO hedges

823
– 

– 
– 

327

US$M

US$M

– 

£M

Nominal amounts
Average forward rate
Forward foreign exchange contracts used in US dollar NIFO hedges

190/970
5.10

A$/HKD

– 
– 

Buy A$M/ 
Sell HKDM

Nominal amounts
Average forward rate

Buy A$M/ 
Sell US$M

A$/US$

991/700
0.71

– 
– 

– 
– 

– 

– 
– 

– 
– 

– 
6

– 

185/970
5.24

528
– 

– 

– 
– 

418/300
0.72

991/700
0.71

– 
– 

327

– 
– 

– 
– 

How we account for the numbers

When a derivative or other financial instrument is designated in a qualifying hedge relationship, the relevant controlled 
entity formally documents the relationship between the hedging instrument and hedged item, as well as its risk 
management objectives and its strategy for undertaking hedging transactions. The relevant entity also documents its 
assessment, both at hedge inception and on an ongoing basis, of whether the hedge effectiveness requirements are 
met, including the relevant economic relationship, the effect of credit risk and the hedge ratio.

For qualifying cash flow hedges and NIFO hedges, the gain or loss on the hedging instrument associated with the 
effective portion of the hedge is accumulated in equity through other comprehensive income and is subsequently 
reclassified to profit or loss when the hedged item also affects profit or loss. For cash flow hedges, this is reflected 
in the cash flow hedge reserve; for NIFO hedges, this is reflected in the foreign currency translation reserve 
(refer to note 5.3.2). The gain or loss on any ineffective portion of the hedging instrument is recognised in profit 
or loss immediately.

Where the forward and currency basis components of a designated derivative do not form part of the designated hedge 
relationship, these components are accounted for at fair value through profit or loss unless a 'cost of hedging' election 
is made. Under this election, the fair value of these components at inception of the hedge are amortised through 
profit or loss over time periods relevant to the hedge, with other changes in their fair values after inception recognised 
in equity through other comprehensive income. This election can be made on a hedge-by-hedge basis and is reflected 
in the cost of hedging reserve (refer to note 5.3.2).

Hedge accounting is discontinued when the qualifying hedge no longer meets the criteria for hedge accounting, 
including when the risk management objective is no longer met or is no longer relevant; the hedging instrument expires 
or is sold, terminated or exercised; the hedged item matures, is sold or repaid; or a hedged forecast transaction 
is no longer considered highly probable. When a cash flow hedge is discontinued, any cumulative hedging gain or loss 
in equity at that time remains in equity and is reclassified to profit or loss when the hedged item affects profit or loss. 
If the hedged item is a forecast transaction that is no longer considered highly probable, the cumulative gain or loss 
is immediately reclassified to profit or loss. When a hedge of a net investment in a foreign operation is discontinued, 
any cumulative hedging gain or loss at that time remains in equity and is only recycled to profit or loss on disposal 
of the foreign operation, forming part of the resulting gain or loss.

121

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122

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. 

TAX

Overview

Income tax expense or credit is the accounting tax outcome for the period and is calculated as the tax payable on 
the current period taxable income based on the applicable income tax rate for each jurisdiction, adjusted for changes 
in deferred tax assets and liabilities attributable to temporary differences and unused tax losses. The relationship 
between accounting profit or loss and income tax expense or credit is provided in the reconciliation of prima facie tax 
to income tax expense or credit (refer to note 6.1). Income tax expense does not equate to the amount of tax actually 
paid to tax authorities around the world, as it is based upon the accrual accounting concept.

Accounting income and expenses do not always have the same recognition pattern as taxable income and expenses, 
creating a timing difference as to when a tax expense or credit can be recognised. These differences usually reverse 
over time but, until they do, a deferred tax asset or liability is recognised on the balance sheet. Note 6.2 details the 
composition and movements in deferred tax balances and the key management assumptions applied in recognising 
tax losses.

Details of franking credits available to shareholders are disclosed in note 5.4.

6.1 

Reconciliation of prima facie tax to income tax expense

Profit before income tax 
Prima facie tax expense at 30%
Tax effect of non-temporary differences:
Untaxed dividends
Differences in tax rates
Other, including non-taxable income and non-allowable expenses
Prima facie tax adjusted for non-temporary differences
Deferred tax assets re-recognised
Underprovision in prior years
Income tax expense
Analysed as follows:
Current tax
Deferred tax

Deferred tax expense (credit) comprises: 
Deferred tax assets recognised in profit or loss 
Deferred tax liabilities recognised in profit or loss 

NOTE

6.2.1
6.2.2

2023
US$M

1,837
551

(2)
(42)
4
511
(41)
3
473

280
193
473

112
81
193

RESTATED 
2022
US$M

676
203

(3)
17
55
272
(203)
12
81

91
(10)
81

(214)
204
(10)

How we account for the numbers

The current income tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted 
at the end of the reporting period in the countries in which controlled entities operate and generate taxable income. 
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax 
regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected 
to be paid to the tax authorities. 

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends 
to either settle on a net basis or to realise the asset and settle the liability simultaneously. Current and deferred tax 
is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income 
or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, 
as appropriate.

122

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

6. 

TAX

Overview

Income tax expense or credit is the accounting tax outcome for the period and is calculated as the tax payable on 

the current period taxable income based on the applicable income tax rate for each jurisdiction, adjusted for changes 

in deferred tax assets and liabilities attributable to temporary differences and unused tax losses. The relationship 

between accounting profit or loss and income tax expense or credit is provided in the reconciliation of prima facie tax 

to income tax expense or credit (refer to note 6.1). Income tax expense does not equate to the amount of tax actually 

paid to tax authorities around the world, as it is based upon the accrual accounting concept.

Accounting income and expenses do not always have the same recognition pattern as taxable income and expenses, 

creating a timing difference as to when a tax expense or credit can be recognised. These differences usually reverse 

over time but, until they do, a deferred tax asset or liability is recognised on the balance sheet. Note 6.2 details the 

composition and movements in deferred tax balances and the key management assumptions applied in recognising 

tax losses.

Details of franking credits available to shareholders are disclosed in note 5.4.

6.1 

Reconciliation of prima facie tax to income tax expense

Other, including non-taxable income and non-allowable expenses

Prima facie tax adjusted for non-temporary differences

Profit before income tax 

Prima facie tax expense at 30%

Tax effect of non-temporary differences:

Untaxed dividends

Differences in tax rates

Deferred tax assets re-recognised

Underprovision in prior years

Income tax expense

Analysed as follows:

Current tax

Deferred tax

Deferred tax expense (credit) comprises: 

Deferred tax assets recognised in profit or loss 

Deferred tax liabilities recognised in profit or loss 

NOTE

6.2.1

6.2.2

2023

US$M

1,837

551

(2)

(42)

4

511

(41)

3

473

280

193

473

112

81

193

RESTATED 

2022

US$M

676

203

(3)

17

55

272

(203)

12

81

91

(10)

81

(214)

204

(10)

How we account for the numbers

The current income tax expense or credit is calculated on the basis of the tax laws enacted or substantively enacted 

at the end of the reporting period in the countries in which controlled entities operate and generate taxable income. 

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax 

regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected 

to be paid to the tax authorities. 

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends 

to either settle on a net basis or to realise the asset and settle the liability simultaneously. Current and deferred tax 

is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income 

or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, 

as appropriate.

6.2 

Deferred income tax

Deferred tax assets
Deferred tax liabilities

6.2.1  Deferred tax assets 

Amounts recognised in profit or loss
Financial assets – fair value movements
Provision for impairment
Employee benefits
Intangible assets
Insurance provisions
Tax losses recognised
Other

Amounts recognised in other comprehensive income and equity
Defined benefit plans
Other

Deferred tax assets before set-off
Set-off of deferred tax liabilities

Movements

At 1 January
Amounts recognised in profit or loss 
Amounts recognised in other comprehensive income
Foreign exchange
At 31 December

NOTE

6.2.1
6.2.2

NOTE

6.2.2
6.2

NOTE

6.1

2023
US$M

625
366

2023
US$M

19
19
74
65
761
348
101
1,387

28
3
31
1,418
(793)
625

2023
US$M

1,526
(112)
(3)
7
1,418

RESTATED 
2022
US$M

613
149

RESTATED 
2022
US$M

22
13
66
158
747
290
196
1,492

29
5
34
1,526
(913)
613

RESTATED 
2022
US$M

1,340
214
1
(29)
1,526

123

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124

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. 

TAX

Critical accounting judgements and estimates

Recoverability of deferred tax assets

QBE assesses the recoverability of deferred tax assets at each balance date. In making this assessment, 
QBE considers in particular each controlled entity’s future business plans, history of generating taxable profits, 
whether the unused tax losses resulted from identifiable causes which are unlikely to recur and if any tax planning 
opportunities exist in the period in which the taxable losses can be utilised.

The recognised deferred tax asset relating to the North American tax group of $420 million (2022 $390 million) 
comprises $300 million (2022 $220 million) of carry forward tax losses and $120 million (2022 $170 million) of deductible 
temporary differences, net of applicable offsetting deferred tax liabilities, as a result of insurance technical reserves and 
the tax deductibility of goodwill and other intangibles.

Uncertainty continues to exist in relation to the utilisation of this asset, which is subject to there being continued future 
taxable profits over the period of time in which the losses can be utilised. QBE has made a judgement that the North 
American tax group will be able to generate sufficient taxable profits over the foreseeable future, based upon the Group’s 
business plan and assumptions which are consistent with those used in the impairment testing of goodwill. Key assumptions 
include an expectation of future taxable profit driven by no material deterioration in the estimates of prior accident year 
insurance liabilities, a sustained return to underwriting profitability, benefits flowing from initiatives to reduce the cost 
base of the division and sustained investment yields. Losses expire over the next 19 years, with the majority expiring 
between 2032 and 2040. The uncertainty around the recognition of the deferred tax asset will be resolved in future years 
if taxable profits are generated. Recovery of the asset continues to be sensitive to changes in the combined operating ratio, 
premium growth and investment yield assumptions as these items are the key drivers of future taxable profits. 

6.2.2  Deferred tax liabilities

Amounts recognised in profit or loss
Intangible assets
Insurance provisions
Financial assets – fair value movements
Other provisions
Other

Amounts recognised in other comprehensive income and equity
Defined benefit plans

Deferred tax liabilities before set-off
Set-off of deferred tax assets

Movements

At 1 January
Amounts recognised in profit or loss
Amounts recognised in other comprehensive income
Foreign exchange
At 31 December

NOTE

6.2.1
6.2

NOTE

6.1

2023
US$M

93
951
15
6
86
1,151

8
8
1,159
(793)
366

2023
US$M

1,062
81
(2)
18
1,159

RESTATED 
2022
US$M

154
757
37
23
82
1,053

9
9
1,062
(913)
149

RESTATED 
2022
US$M

886
204
(9)
(19)
1,062

 
124

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

6. 

TAX

Critical accounting judgements and estimates

Recoverability of deferred tax assets

QBE assesses the recoverability of deferred tax assets at each balance date. In making this assessment, 

QBE considers in particular each controlled entity’s future business plans, history of generating taxable profits, 

whether the unused tax losses resulted from identifiable causes which are unlikely to recur and if any tax planning 

opportunities exist in the period in which the taxable losses can be utilised.

The recognised deferred tax asset relating to the North American tax group of $420 million (2022 $390 million) 

comprises $300 million (2022 $220 million) of carry forward tax losses and $120 million (2022 $170 million) of deductible 

temporary differences, net of applicable offsetting deferred tax liabilities, as a result of insurance technical reserves and 

the tax deductibility of goodwill and other intangibles.

Uncertainty continues to exist in relation to the utilisation of this asset, which is subject to there being continued future 

taxable profits over the period of time in which the losses can be utilised. QBE has made a judgement that the North 

American tax group will be able to generate sufficient taxable profits over the foreseeable future, based upon the Group’s 

business plan and assumptions which are consistent with those used in the impairment testing of goodwill. Key assumptions 

include an expectation of future taxable profit driven by no material deterioration in the estimates of prior accident year 

insurance liabilities, a sustained return to underwriting profitability, benefits flowing from initiatives to reduce the cost 

base of the division and sustained investment yields. Losses expire over the next 19 years, with the majority expiring 

between 2032 and 2040. The uncertainty around the recognition of the deferred tax asset will be resolved in future years 

if taxable profits are generated. Recovery of the asset continues to be sensitive to changes in the combined operating ratio, 

premium growth and investment yield assumptions as these items are the key drivers of future taxable profits. 

Amounts recognised in other comprehensive income and equity

6.2.2  Deferred tax liabilities

Amounts recognised in profit or loss

Financial assets – fair value movements

Intangible assets

Insurance provisions

Other provisions

Other

Defined benefit plans

Deferred tax liabilities before set-off

Set-off of deferred tax assets

Movements

At 1 January

Amounts recognised in profit or loss

Amounts recognised in other comprehensive income

Foreign exchange

At 31 December

NOTE

6.2.1

6.2

NOTE

6.1

2023

US$M

93

951

15

6

86

1,151

8

8

1,159

(793)

366

2023

US$M

1,062

81

(2)

18

1,159

RESTATED 

2022

US$M

154

757

37

23

82

1,053

9

9

1,062

(913)

149

RESTATED 

2022

US$M

886

204

(9)

(19)

1,062

How we account for the numbers

Deferred income tax is provided in full using the liability method on temporary differences arising between the tax bases 
of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax liabilities are not 
recognised if they arise from the initial recognition of goodwill or if they arise from the initial recognition of an asset or liability 
in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable 
profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted 
by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the 
deferred income tax liability is settled. 

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that 
future taxable amounts will be available to utilise those temporary differences and losses. 

Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and tax 
bases of investments in foreign operations where the controlled entity is able to control the timing of the reversal of the 
temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset in the consolidated financial statements when there is a legally enforceable 
right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.

6.2.3  Tax losses
The Group has not brought to account $168 million (2022 $187 million) of tax losses, which includes some benefit arising from tax 
losses in overseas countries. $81 million (2022 $69 million) of tax losses not brought to account have an indefinite life and the remaining 
$87 million (2022 $118 million) expire in eight to 19 years. The benefits of unused tax losses will only be brought to account when 
it is probable that they will be realised.

This benefit of tax losses will only be obtained if:

• the Group derives future assessable income of a nature and an amount sufficient to enable the benefit from the deductions 

for the losses to be realised;

• the Group continues to comply with the conditions for deductibility imposed by tax legislation; and

• no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the losses.

6.2.4  Tax consolidation legislation
On adoption of the tax consolidation legislation, the Company and its wholly-owned Australian controlled entities entered into a tax 
sharing and tax funding agreement that requires the Australian entities to fully compensate the Company for current tax liabilities 
and to be fully compensated by the Company for any current tax or deferred tax assets in respect of tax losses arising from 
external transactions occurring after the date of implementation of the tax consolidation legislation. The contributions are allocated 
by reference to the notional taxable income of each Australian entity. The head entity is QBE Insurance Group Limited.

International tax reform – Pillar Two model rules 

6.2.5 
The Group has applied the mandatory exception to recognising and disclosing information about deferred tax assets and liabilities 
related to Pillar Two income tax legislation, in accordance with AASB 112 Income Taxes as amended by AASB 2023-2 Amendments 
to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules.

As at the balance date, Pillar Two legislation has been enacted or substantively enacted in several jurisdictions in which QBE 
operates and will be effective from 1 January 2024, with a number of other jurisdictions expected to enact this legislation in 2024 
with possible retrospective application from 1 January 2024.

Under the Pillar Two model rules, the Group is expected to be liable to pay a top-up tax for the difference between the effective tax 
rate calculated in accordance with Pillar Two and a 15% minimum tax rate. The quantitative impact of Pillar Two legislation is not 
yet reasonably estimable, but the Group’s exposure to Pillar Two income taxes is not expected to be material based on the Group’s 
assessment to date. The Group’s assessment is ongoing and actual impacts are subject to the finalisation of tax laws and guidance 
relating to the application of Pillar Two rules which continue to be developed and established. 

125

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n
s
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a
n
c
e
G
r
o
u
p

1

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v
e
r
v

i
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w

2

O
p
e
r
a
t
i

n
g
a
n
d

fi
n
a
n
c
i
a
l

r
e
v

i
e
w

3

G
o
v
e
r
n
a
n
c
e

4

R
e
p
o
r
t

D
i
r
e
c
t
o
r
s

’

5

R
e
p
o
r
t

F

i

n
a
n
c
i
a
l

6

i

A
d
d
i
t
i

o
n
a
l

n
f
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r
m
a
t
i

o
n

 
 
 
 
 
 
 
 
 
 
 
 
 
 
126

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. 

GROUP STRUCTURE

Overview

This section provides information to help users understand the Group structure, including the impact of changes in the 
financial year. This includes acquisitions and disposals of businesses, intangible assets acquired or developed and the 
results of impairment reviews.

7.1 

Disposals

During 2023, the Group disposed of QBE (PNG) Limited and its wholly-owned operating subsidiary, QBE Insurance (PNG) Limited. 

During 2022, the Group disposed of Westwood Insurance Agency in North America. 

7.2 

Intangible assets

Overview 

Intangible assets are assets with no physical substance. The most significant classes of intangible assets are 
detailed below: 

Lloyd’s syndicate capacity
The Lloyd’s syndicate capacity intangible asset relates to the syndicate capacity acquired as part of the acquisition 
of QBE Underwriting Limited (formerly trading as Limit) in 2000 and costs incurred as a result of increasing capacity 
since that date. Syndicate capacity is the aggregate of the premium limits of each member of that syndicate at a point 
in time. An existing capital provider has the first right to participate on the next year of account, giving the indefinite right 
to participate on all future years of account. The Group has demonstrated a long-term commitment to developing its 
operations at Lloyd’s. The value of this asset is in the access it gives to future underwriting profits at Lloyd’s. For these 
reasons, Lloyd’s syndicate capacity is deemed to have an indefinite useful life.

Customer relationships
Customer relationships comprise the capitalisation of future profits relating to insurance contracts acquired and 
the expected renewal of those contracts. It also includes the value of distribution networks and agency relationships. 
Customer relationships are amortised over remaining lives of up to eight years depending on the classes of business 
to which the assets relate.

Brand names
These assets reflect the revenue-generating ability of acquired brands. In some circumstances, brand names 
are considered to have an indefinite useful life due to the long-term nature of the asset. 

Insurance licences
These assets give the Group the right to operate in certain geographic locations and to write certain classes 
of business with a potential to generate additional revenue. In some cases, these are considered to have an indefinite 
useful life due to their long-term nature; however, where there is a finite useful life, assets are amortised over the 
remaining period, up to 13 years.

Software
This includes both acquired and internally developed software which is not integral or closely related to an item 
of hardware such as an underwriting system. Capitalised software is amortised over periods of up to 10 years, 
reflecting the period during which the Group is expected to benefit from the use of the software.

Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net 
identifiable assets acquired. Goodwill has an indefinite useful life and therefore is not subject to amortisation 
but is tested for impairment annually, or more often if there is an indication of impairment.

126

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

This section provides information to help users understand the Group structure, including the impact of changes in the 

financial year. This includes acquisitions and disposals of businesses, intangible assets acquired or developed and the 

results of impairment reviews.

During 2023, the Group disposed of QBE (PNG) Limited and its wholly-owned operating subsidiary, QBE Insurance (PNG) Limited. 

During 2022, the Group disposed of Westwood Insurance Agency in North America. 

7. 

GROUP STRUCTURE

Overview

7.1 

Disposals

7.2 

Intangible assets

Overview 

detailed below: 

Lloyd’s syndicate capacity

Intangible assets are assets with no physical substance. The most significant classes of intangible assets are 

The Lloyd’s syndicate capacity intangible asset relates to the syndicate capacity acquired as part of the acquisition 

of QBE Underwriting Limited (formerly trading as Limit) in 2000 and costs incurred as a result of increasing capacity 

since that date. Syndicate capacity is the aggregate of the premium limits of each member of that syndicate at a point 

in time. An existing capital provider has the first right to participate on the next year of account, giving the indefinite right 

to participate on all future years of account. The Group has demonstrated a long-term commitment to developing its 

operations at Lloyd’s. The value of this asset is in the access it gives to future underwriting profits at Lloyd’s. For these 

reasons, Lloyd’s syndicate capacity is deemed to have an indefinite useful life.

Customer relationships comprise the capitalisation of future profits relating to insurance contracts acquired and 

the expected renewal of those contracts. It also includes the value of distribution networks and agency relationships. 

Customer relationships are amortised over remaining lives of up to eight years depending on the classes of business 

Customer relationships

to which the assets relate.

Brand names

Insurance licences

Software

Goodwill

These assets reflect the revenue-generating ability of acquired brands. In some circumstances, brand names 

are considered to have an indefinite useful life due to the long-term nature of the asset. 

These assets give the Group the right to operate in certain geographic locations and to write certain classes 

of business with a potential to generate additional revenue. In some cases, these are considered to have an indefinite 

useful life due to their long-term nature; however, where there is a finite useful life, assets are amortised over the 

remaining period, up to 13 years.

This includes both acquired and internally developed software which is not integral or closely related to an item 

of hardware such as an underwriting system. Capitalised software is amortised over periods of up to 10 years, 

reflecting the period during which the Group is expected to benefit from the use of the software.

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net 

identifiable assets acquired. Goodwill has an indefinite useful life and therefore is not subject to amortisation 

but is tested for impairment annually, or more often if there is an indication of impairment.

127

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c
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G
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1

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a
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d

IDENTIFIABLE INTANGIBLES

LLOYD’S 
SYNDICATE 
CAPACITY 
US$M

CUSTOMER 
RELATION-
SHIPS 
US$M

BRAND 
NAMES 
US$M

INSURANCE 
LICENCES 
US$M

SOFTWARE 
US$M

OTHER 
US$M

GOODWILL 
US$M

TOTAL 
US$M

76
– 
– 
5
81

– 
– 
– 
– 
– 

390
– 
– 
– 
390

(377)
(9)
– 
– 
(386)

81

4

25
– 
– 
– 
25

(21)
– 
– 
– 
(21)

4

132
– 
– 
1
133

(74)
(2)
– 
– 
(76)

57

463
145
(44)
3
567

(174)
(65)
41
1
(197)

370

10
– 
– 
– 
10

(10)
– 
– 
– 
(10)

1,578
– 
– 
18
1,596

– 
– 
– 
– 
– 

2,674
145
(44)
27
2,802

(656)
(76)
41
1
(690)

– 

1,596

2,112

r
e
v

i
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w

2023

Cost
At 1 January
Additions
Disposals/reclassifications1
Foreign exchange
At 31 December
Amortisation
At 1 January
Amortisation 2
Disposals/reclassifications1
Foreign exchange
At 31 December
Carrying amount
At 31 December

1  Includes de-recognition of $38 million of fully amortised intangible assets no longer in use.
2  Amortisation of $65 million is included in insurance service expenses as it relates to intangible assets integral to the Group’s underwriting activities.

2022

Cost
At 1 January
Additions
Impairment 
Disposals
Foreign exchange
At 31 December
Amortisation
At 1 January
Amortisation1
Disposals
Foreign exchange
At 31 December
Carrying amount
At 31 December

IDENTIFIABLE INTANGIBLES

LLOYD’S 
SYNDICATE 
CAPACITY 
US$M

CUSTOMER 
RELATION-
SHIPS 
US$M

BRAND 
NAMES 
US$M

INSURANCE 
LICENCES 
US$M

SOFTWARE 
US$M

OTHER 
US$M

GOODWILL 
US$M

TOTAL 
US$M

86
– 
– 
– 
(10)
76

– 
– 
– 
– 
– 

454
– 
– 
(57)
(7)
390

(426)
(13)
56
6
(377)

76

13

26
– 
– 
– 
(1)
25

(22)
– 
– 
1
(21)

4

139
– 
– 
– 
(7)
132

(77)
(2)
– 
5
(74)

58

492
132
(11)
(119)
(31)
463

(239)
(64)
119
10
(174)

289

19
– 
– 
(9)
– 
10

(19)
– 
9
– 
(10)

2,016
– 
– 
(328)
(110)
1,578

– 
– 
– 
– 
– 

3,232
132
(11)
(513)
(166)
2,674

(783)
(79)
184
22
(656)

– 

1,578

2,018

1  Amortisation of $63 million is included in insurance service expenses as it relates to intangible assets integral to the Group’s underwriting activities.

How we account for the numbers

Intangible assets are measured at cost less accumulated amortisation and impairment. Those with a finite useful life are 
amortised over their estimated useful life in accordance with the pattern of expected consumption of economic benefits, 
with amortisation expense reported in insurance service expenses or in amortisation and impairment of intangibles 
depending on the use of the asset. Intangible assets with an indefinite useful life are not subject to amortisation but are 
tested for impairment annually or more frequently if there are indicators of impairment. Intangible assets with a finite 
useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount 
may not be recoverable.

3

G
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’

5

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F

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6

i

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128

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. 

GROUP STRUCTURE

7.2.1 

Impairment testing of intangible assets

Overview

An intangible asset’s recoverable value is the greater of its value in use and its fair value less cost to sell.

For intangible assets with a finite life, if there are indicators that the intangible asset’s recoverable value has fallen below 
its carrying value (e.g. due to changing market conditions), an impairment test is performed and a loss is recognised for 
the amount by which the carrying value exceeds the asset’s recoverable value.

Intangible assets that have an indefinite useful life, such as goodwill, are tested annually for impairment or more 
frequently where there is an indication that the carrying amount may not be recoverable.

Goodwill is allocated to cash-generating units, or groups of cash-generating units, expected to benefit from synergies 
arising from the acquisition giving rise to the goodwill. Cash-generating units or groups of cash-generating units reflect 
the level at which goodwill is monitored for impairment by QBE. As the Group acquires or disposes of operations 
or reorganises the way that operations are managed, reporting structures may change, giving rise to a reassessment 
of cash-generating units and the allocation of goodwill to those cash-generating units. 

The goodwill relating to certain acquisitions is denominated in currencies other than the US dollar and so is subject 
to foreign exchange movements.

Goodwill is analysed by groups of cash-generating units as follows:

North America
International
Australia Pacific

2023
US$M

30
501
1,065
1,596

2022
US$M

30
490
1,058
1,578

Impairment losses
No intangible assets were impaired during 2023. During 2022, software assets of $11 million were impaired.

128

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

7. 

GROUP STRUCTURE

7.2.1 

Impairment testing of intangible assets

Overview

An intangible asset’s recoverable value is the greater of its value in use and its fair value less cost to sell.

For intangible assets with a finite life, if there are indicators that the intangible asset’s recoverable value has fallen below 

its carrying value (e.g. due to changing market conditions), an impairment test is performed and a loss is recognised for 

the amount by which the carrying value exceeds the asset’s recoverable value.

Intangible assets that have an indefinite useful life, such as goodwill, are tested annually for impairment or more 

frequently where there is an indication that the carrying amount may not be recoverable.

Goodwill is allocated to cash-generating units, or groups of cash-generating units, expected to benefit from synergies 

arising from the acquisition giving rise to the goodwill. Cash-generating units or groups of cash-generating units reflect 

the level at which goodwill is monitored for impairment by QBE. As the Group acquires or disposes of operations 

or reorganises the way that operations are managed, reporting structures may change, giving rise to a reassessment 

of cash-generating units and the allocation of goodwill to those cash-generating units. 

The goodwill relating to certain acquisitions is denominated in currencies other than the US dollar and so is subject 

to foreign exchange movements.

Goodwill is analysed by groups of cash-generating units as follows:

North America

International

Australia Pacific

Impairment losses

No intangible assets were impaired during 2023. During 2022, software assets of $11 million were impaired.

2023

US$M

30

501

1,065

1,596

2022

US$M

30

490

1,058

1,578

How we account for the numbers

Impairment testing of identifiable intangible assets

The recoverable amount of each intangible asset with an indefinite useful life has been determined by reference 
to a value in use calculation based on the following key assumptions and estimates:

• Cash flow forecasts relevant to the initial valuation of the identifiable intangible asset are reviewed and updated 

(if appropriate). Cash flow forecasts are based on a combination of actual performance to date and expectations 
of future performance based on prevailing and anticipated market factors.

• Discount rates include a beta and a market risk premium determined with reference to observable market information, 

and a specific risk premium appropriate to reflect the nature of the risk associated with the intangible asset or the 
cash-generating unit to which the asset is allocated.

Impairment testing of goodwill

The recoverable amount of each cash-generating unit or group of cash-generating units has been determined 
by reference to a value in use calculation based on the following key assumptions and estimates:

• Cash flow forecasts reflect combined operating ratio and investment return assumptions that build from the latest 
three-year business plan. These forecasts cover a period of five years, with the final two years determined with 
reference to the terminal growth rates discussed below. The cash flow forecasts are based on a combination of 
historical performance and expectations of future performance based on prevailing and anticipated market factors 
and the benefit of committed cost saving measures.

• Terminal value is calculated using a perpetuity growth formula from the end of the cash flow forecast period. 
Growth rates reflect the long-term average growth rates of the countries relevant to the cash-generating unit 
or group of cash-generating units and are based on observable market information. The terminal growth rates used 
in impairment testing are: North America 2.3% (2022 2.3%), Australia Pacific 2.5% (2022 2.5%) and International 2.0% 
(2022 2.0%). 

• Discount rates reflect a beta and a market risk premium determined with reference to observable market information, 
and a specific risk premium appropriate to reflect the nature of the business of each cash-generating unit or group 
of cash-generating units. The pre-tax discount rates used were: North America 12.9% (2022 12.7%), Australia Pacific 
14.5% (2022 14.0%) and International 12.2% (2022 10.8%). The post-tax discount rates used were: North America 
9.9% (2022 9.9%), Australia Pacific 10.1% (2022 9.9%) and International 9.0% (2022 8.6%). 

Critical accounting judgements and estimates

The Group’s business plan, which is the basis for cash flow forecasts used to determine the recoverable amount 
of goodwill, considers the potential impact of climate change through the catastrophe allowance which reflects the 
anticipated rise in trends in the frequency and cost of weather-related events, as well as other assumptions, including 
relating to premium rate, which reflect QBE’s underwriting strategy and planned management actions in response 
to these risks.

The disposal of Westwood Insurance Agency in 2022 (note 7.1) included an allocation of $328 million of goodwill relating 
to the North American cash-generating unit. 

129

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r
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3

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a
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4

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p
o
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D
i
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c
t
o
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s

’

5

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6

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t
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130

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. 

GROUP STRUCTURE

7.3 

Controlled entities

Overview

This section lists the Group’s controlled entities. The consolidated financial statements incorporate the assets and 
liabilities of all entities controlled by the Company at 31 December 2023 and the results for the financial year then 
ended, or for the period during which control existed if the entity was acquired or disposed of during the financial year.

7.3.1 

Controlled entities 

Ultimate parent entity
QBE Insurance Group Limited
Controlled entities 
Austral Mercantile Collections Pty Limited
Australian Aviation Underwriting Pool Pty Limited
Burnett & Company, Inc.
Champlain Insurance PCC, Inc. (incorporated 26 April 2023)
Cumberland Insurance PCC, Inc. (incorporated 9 May 2023)
Elders Insurance (Underwriting Agency) Pty Limited 
Equator Reinsurances Limited
General Casualty Company of Wisconsin
General Casualty Insurance Company
Greenhill BAIA Underwriting GmbH
Greenhill International Insurance Holdings Limited 
Greenhill Sturge Underwriting Limited 
Greenhill Underwriting Espana Limited 
Lifeco s.r.o.
NAU Country Insurance Company
North Pointe Insurance Company
Praetorian Insurance Company
QBE (PNG) Limited (sold effective 31 October 2023)¹
QBE Administration Services, Inc.
QBE Americas, Inc.
QBE Asia Pacific Holdings Limited 
QBE Asia Services Sdn. Bhd
QBE Blue Ocean Re Limited
QBE Corporate Limited
QBE Emerging Markets Holdings Pty Limited 
QBE Employee Share Trust2
QBE Europe SA/NV
QBE European Operations plc 
QBE European Services Limited 
QBE European Underwriting Services (Australia) Pty Limited 
(deregistered 23 August 2023)
QBE Finance Holdings (EO) Limited 
QBE FIRST Enterprises, LLC 
QBE FIRST Property Tax Solutions, LLC 
QBE General Insurance (Hong Kong) Limited
QBE Group Services Pty Ltd
QBE Group Shared Services Limited
QBE Holdings (AAP) Pty Limited
QBE Holdings (EO) Limited
QBE Holdings, Inc.
QBE Hongkong & Shanghai Insurance Limited

COUNTRY OF
INCORPORATION/
FORMATION

Australia

Australia
Australia
United States 
United States
United States
Australia
Bermuda
United States 
United States 
Germany
United Kingdom
United Kingdom
United Kingdom
Czech Republic
United States 
United States 
United States 
PNG
United States 
United States 
Hong Kong
Malaysia
Bermuda
United Kingdom
Australia
Australia
Belgium
United Kingdom
United Kingdom

Australia
United Kingdom
United States 
United States 
Hong Kong
Australia
United Kingdom
Australia
United Kingdom
United States 
Hong Kong

EQUITY HOLDING

2023
%

2022
%

100.00
100.00
100.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
100.00
100.00

–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
–
–
80.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

130

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

This section lists the Group’s controlled entities. The consolidated financial statements incorporate the assets and 

liabilities of all entities controlled by the Company at 31 December 2023 and the results for the financial year then 

ended, or for the period during which control existed if the entity was acquired or disposed of during the financial year.

7. 

GROUP STRUCTURE

7.3 

Controlled entities

Overview

7.3.1 

Controlled entities 

Ultimate parent entity

QBE Insurance Group Limited

Controlled entities 

Austral Mercantile Collections Pty Limited

Australian Aviation Underwriting Pool Pty Limited

Burnett & Company, Inc.

Champlain Insurance PCC, Inc. (incorporated 26 April 2023)

Cumberland Insurance PCC, Inc. (incorporated 9 May 2023)

Elders Insurance (Underwriting Agency) Pty Limited 

Equator Reinsurances Limited

General Casualty Company of Wisconsin

General Casualty Insurance Company

Greenhill BAIA Underwriting GmbH

Greenhill International Insurance Holdings Limited 

Greenhill Sturge Underwriting Limited 

Greenhill Underwriting Espana Limited 

Lifeco s.r.o.

NAU Country Insurance Company

North Pointe Insurance Company

Praetorian Insurance Company

QBE (PNG) Limited (sold effective 31 October 2023)¹

QBE Administration Services, Inc.

QBE Americas, Inc.

QBE Asia Pacific Holdings Limited 

QBE Asia Services Sdn. Bhd

QBE Blue Ocean Re Limited

QBE Corporate Limited

QBE Employee Share Trust2

QBE Europe SA/NV

QBE European Operations plc 

QBE European Services Limited 

QBE Emerging Markets Holdings Pty Limited 

(deregistered 23 August 2023)

QBE Finance Holdings (EO) Limited 

QBE FIRST Enterprises, LLC 

QBE FIRST Property Tax Solutions, LLC 

QBE General Insurance (Hong Kong) Limited

QBE Group Services Pty Ltd

QBE Group Shared Services Limited

QBE Holdings (AAP) Pty Limited

QBE Holdings (EO) Limited

QBE Holdings, Inc.

QBE Hongkong & Shanghai Insurance Limited

QBE European Underwriting Services (Australia) Pty Limited 

COUNTRY OF

INCORPORATION/

FORMATION

Australia

Australia

Australia

United States 

United States

United States

Australia

Bermuda

United States 

United States 

Germany

United Kingdom

United Kingdom

United Kingdom

Czech Republic

United States 

United States 

United States 

PNG

United States 

United States 

Hong Kong

United Kingdom

Malaysia

Bermuda

Australia

Australia

Belgium

United Kingdom

United Kingdom

Australia

United Kingdom

United States 

United States 

Hong Kong

Australia

United Kingdom

Australia

United Kingdom

United States 

Hong Kong

EQUITY HOLDING

2023

%

2022

%

100.00

100.00

100.00

100.00

100.00

80.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

–

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

–

–

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

–

–

80.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

–

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

QBE Insurance (Australia) Limited
QBE Insurance (Fiji) Limited
QBE Insurance (International) Pty Limited
QBE Insurance (Malaysia) Berhad
QBE Insurance (PNG) Limited (sold effective 31 October 2023)¹
QBE Insurance (Singapore) Pte Ltd 
QBE Insurance (Vanuatu) Limited
QBE Insurance (Vietnam) Company Limited
QBE Insurance Corporation
QBE Insurance Holdings Pty Limited
QBE International Markets Pte Ltd (dissolved 8 May 2023)
QBE Investments (Australia) Pty Limited
QBE Investments (North America), Inc.
QBE Irish Share Incentive Plan²
QBE Latin America Insurance Holdings Pty Ltd 
QBE Lenders’ Mortgage Insurance Limited
QBE Management (Ireland) Limited
QBE Management, Inc.
QBE Management Services (Philippines) Pty Limited
QBE Management Services (UK) Limited
QBE Management Services Pty Limited
QBE Mortgage Insurance (Asia) Limited
QBE Partner Services (Europe) LLP
QBE Regional Companies (N.A.), Inc.
QBE Reinsurance Corporation
QBE Reinsurance Services (Bermuda) Limited
QBE Services Inc
QBE Specialty Insurance Company
QBE s.r.o.
QBE Stonington Insurance Holdings Inc
QBE Strategic Capital (Europe) Limited
QBE Strategic Capital (International) Limited 
QBE Strategic Capital Company Pty Limited
QBE UK Finance IV Limited
QBE UK Limited 
QBE UK Share Incentive Plan2
QBE Underwriting Limited
QBE Underwriting Services (Ireland) Limited (dissolved 11 April 2023)
QBE Underwriting Services (UK) Limited
QBE Ventures Pty Limited
QBE Workers Compensation (NSW) Limited (dormant)
QBE Workers Compensation (VIC) Pty Limited (dormant)
Queensland Insurance (Investments) Pte Limited (in liquidation)
Regent Insurance Company
Southern National Risk Management Corporation
Southern Pilot Insurance Company
Standfast Corporate Underwriters Limited
Stonington Insurance Company
Trade Credit Collections Pty Limited
Trade Credit Underwriting Agency NZ Limited
Trade Credit Underwriting Agency Pty Limited

COUNTRY OF
INCORPORATION/
FORMATION

Australia
Fiji
Australia
Malaysia
PNG
Singapore
Vanuatu
Vietnam
United States 
Australia
Singapore
Australia
United States 
Ireland
Australia
Australia
Ireland
United States 
Australia
United Kingdom
Australia
Hong Kong
United Kingdom
United States 
United States 
Bermuda
Canada
United States 
Czech Republic
United States 
United Kingdom
United Kingdom
Australia
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Ireland
United Kingdom
Australia
Australia
Australia
Fiji
United States 
United States 
United States 
United Kingdom
United States 
Australia
New Zealand
Australia

EQUITY HOLDING

2023
%

100.00
100.00
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
–
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

2022
%

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

1  Disclosures relating to the disposal of these controlled entities are included in note 7.1.
2  QBE Employee Share Trust, QBE Irish Share Incentive Plan and QBE UK Share Incentive Plan have been included in the consolidated 

financial statements as these entities are special purpose entities that exist for the benefit of the Group.

All equity in controlled entities is held in the form of shares or through contractual arrangements.

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1

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2

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3

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4

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’

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F

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6

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132

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. 

GROUP STRUCTURE

How we account for the numbers

Controlled entities

Control exists when the Group is exposed, or has rights, to variable returns from its involvement with an entity and has 
the ability to affect those returns through its power over it. All transactions between and with controlled entities are 
eliminated in full. Non-controlling interests in the results and equity of controlled entities are shown separately in the 
consolidated statement of comprehensive income, balance sheet and statement of changes in equity.

Where control of an entity commences during a financial year, its results are included in the consolidated statement 
of comprehensive income from the date on which control is obtained. Where control of an entity ceases during 
a financial year, its results are included for that part of the year during which the control existed.

A change in ownership of a controlled entity without the gain or loss of control is accounted for as an equity transaction.

132

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

7. 

GROUP STRUCTURE

How we account for the numbers

Controlled entities

Control exists when the Group is exposed, or has rights, to variable returns from its involvement with an entity and has 

the ability to affect those returns through its power over it. All transactions between and with controlled entities are 

eliminated in full. Non-controlling interests in the results and equity of controlled entities are shown separately in the 

consolidated statement of comprehensive income, balance sheet and statement of changes in equity.

Where control of an entity commences during a financial year, its results are included in the consolidated statement 

of comprehensive income from the date on which control is obtained. Where control of an entity ceases during 

a financial year, its results are included for that part of the year during which the control existed.

A change in ownership of a controlled entity without the gain or loss of control is accounted for as an equity transaction.

8. 

OTHER

Overview

This section includes other information that must be disclosed to comply with the Australian Accounting Standards 
or the Corporations Act 2001.

8.1 

Other accounting policies 

8.1.1  New accounting standards and amendments adopted by the Group
The Group adopted the following new or amended accounting standards from 1 January 2023: 

TITLE

AASB 17

Insurance Contracts

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2

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AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current

AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting 

Estimates

AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from 

a Single Transaction

AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants

AASB 2023-2  Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules 

3

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With the exception of AASB 17, the impacts of which are detailed below, the adoption of these new and amended standards did not 
significantly impact the Group’s financial statements.

AASB 17 Insurance Contracts

AASB 17 establishes new accounting requirements for insurance contracts. The new standard was adopted in accordance with 
its transitional provisions which require retrospective application and restatement of comparative information as if AASB 17 had 
always been in effect, except to the extent that it is impracticable to do so, in which case permitted modifications have been applied 
(‘modified retrospective approach’). The adoption of AASB 17 has resulted in an increase in net assets as at 1 January 2022 
of $46 million. This amount, being the cumulative retrospective effect of adoption, was recognised as an adjustment to the opening 
balance of retained earnings as shown in the statement of changes in equity. The opening net asset impact mainly reflects increases 
from the application of the AASB 17 risk adjustment ($130 million) and higher discount rates due to the inclusion of the illiquidity 
premium ($168 million), partly offset by decreases driven by onerous contracts ($39 million), the impact of changes in the pattern 
of revenue recognition for certain classes of business (largely resulting from the application of the general model) ($174 million), 
tax impacts ($36 million) and other smaller items.

The following permitted modifications under the modified retrospective approach have been applied to present and measure certain 
groups of insurance and reinsurance contracts on transition to AASB 17:

• certain contracts acquired in the past (e.g. as part of a business combination) that, at the time of acquisition, were considered past 
expiry and were in their claims settlement period. For these contracts, the related liabilities were classified as liabilities for incurred 
claims, on the basis that it was impracticable to treat these liabilities as related to unexpired coverage;

• determination of the contractual service margin, being the unearned profit for contracts measured under the general model, for 

which sufficient data on historical assumptions was not available for the estimation of future cash flows and risk adjustment at initial 
recognition as well as the amount of contractual service margin earned to profit or loss up to the transition date, which are key inputs. 
To the extent that this information was not available without the use of hindsight, permitted modifications in AASB 17 have been 
applied to estimate these amounts based on transition date expectations about changes that occurred between initial recognition and 
the transition date; and

n
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• identification of groups of onerous contracts relating to past underwriting years. These have been assessed based on information 

available at the transition date to the extent that reasonable and supportable information about facts and circumstances prior to that 
date was not available without the use of hindsight.

4

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134

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.1.2  New accounting standards and amendments issued but not yet effective

TITLE

OPERATIVE DATE

AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback

1 January 2024

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between 

1 January 2025

an Investor and its Associate or Joint Venture

The Australian Accounting Standards and amendments detailed in the table above are not mandatory for the Group until the operative 
dates stated; however, early adoption is often permitted.

The Group currently plans to adopt the standards and amendments detailed above in the reporting periods beginning on their 
respective operative dates. An assessment of the financial impact of the standards and amendments has been undertaken and 
they are not expected to have a material impact on the Group’s financial statements.

8.2 

Contingent liabilities

Overview

Contingent liabilities are disclosed when the possibility of a future settlement of economic benefits is considered 
to be less than probable but more likely than remote. If the expected settlement of the liability becomes probable, 
a provision is recognised.

QBE is required to support the underwriting activities of the Group’s controlled entities including corporate members at Lloyd’s. 
Funds at Lloyd’s are those funds of the Group which are subject to the terms of the Lloyd’s Deposit Trust Deed and are required 
to support underwriting for the following year and the open years of account, determined by a formula prescribed by Lloyd’s each 
year. At the balance date, letters of credit and similar forms of support of $2,361 million (2022 $2,330 million) were in place in respect 
of the Group’s participation in Lloyd’s, along with cash and investments of $110 million (2022 $89 million). In addition, a controlled 
entity has entered into various trust and security deeds with Lloyd’s in respect of assets lodged to support its underwriting activities. 
These deeds contain covenants that require the entity to meet financial obligations should they arise in relation to cash calls from 
syndicate participations. A cash call would be made first on the assets held in syndicate trust funds and would only call on funds 
at Lloyd’s after syndicate resources were exhausted. Only if the level of these trust funds was not sufficient would a cash call result 
in a draw down on the letters of credit and other assets lodged with Lloyd’s.

In the normal course of business, the Group is also exposed to contingent liabilities in relation to claims litigation and regulatory 
examinations arising out of its insurance and reinsurance activities. The Group may also be exposed to the possibility of contingent 
liabilities in relation to insurance and non-insurance litigation including but not limited to regulatory test cases and class actions, 
taxation and compliance matters, which may result in legal or regulatory penalties and financial or non-financial losses and 
other impacts. QBE is currently defending a representative class action in Australia relating to policyholders with business 
interruption policies. 

Entities in the Group may also provide guarantees to support representations in commercial transactions.

8.3 

Offsetting financial assets and liabilities 

At 31 December 2022, the Group had a $228 million receivable and payable with a single counterparty which were fully offset in the 
balance sheet in accordance with Australian Accounting Standards, on the basis that the Group intended to settle these on a net 
basis and had a legally enforceable right to do so.

The receivable and payable are nil at the balance date as they were net settled during the current year.

134

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.1.2  New accounting standards and amendments issued but not yet effective

TITLE

OPERATIVE DATE

AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback

1 January 2024

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between 

1 January 2025

an Investor and its Associate or Joint Venture

The Australian Accounting Standards and amendments detailed in the table above are not mandatory for the Group until the operative 

dates stated; however, early adoption is often permitted.

The Group currently plans to adopt the standards and amendments detailed above in the reporting periods beginning on their 

respective operative dates. An assessment of the financial impact of the standards and amendments has been undertaken and 

they are not expected to have a material impact on the Group’s financial statements.

8.2 

Contingent liabilities

Overview

a provision is recognised.

Contingent liabilities are disclosed when the possibility of a future settlement of economic benefits is considered 

to be less than probable but more likely than remote. If the expected settlement of the liability becomes probable, 

QBE is required to support the underwriting activities of the Group’s controlled entities including corporate members at Lloyd’s. 

Funds at Lloyd’s are those funds of the Group which are subject to the terms of the Lloyd’s Deposit Trust Deed and are required 

to support underwriting for the following year and the open years of account, determined by a formula prescribed by Lloyd’s each 

year. At the balance date, letters of credit and similar forms of support of $2,361 million (2022 $2,330 million) were in place in respect 

of the Group’s participation in Lloyd’s, along with cash and investments of $110 million (2022 $89 million). In addition, a controlled 

entity has entered into various trust and security deeds with Lloyd’s in respect of assets lodged to support its underwriting activities. 

These deeds contain covenants that require the entity to meet financial obligations should they arise in relation to cash calls from 

syndicate participations. A cash call would be made first on the assets held in syndicate trust funds and would only call on funds 

at Lloyd’s after syndicate resources were exhausted. Only if the level of these trust funds was not sufficient would a cash call result 

in a draw down on the letters of credit and other assets lodged with Lloyd’s.

In the normal course of business, the Group is also exposed to contingent liabilities in relation to claims litigation and regulatory 

examinations arising out of its insurance and reinsurance activities. The Group may also be exposed to the possibility of contingent 

liabilities in relation to insurance and non-insurance litigation including but not limited to regulatory test cases and class actions, 

taxation and compliance matters, which may result in legal or regulatory penalties and financial or non-financial losses and 

other impacts. QBE is currently defending a representative class action in Australia relating to policyholders with business 

interruption policies. 

Entities in the Group may also provide guarantees to support representations in commercial transactions.

8.3 

Offsetting financial assets and liabilities 

At 31 December 2022, the Group had a $228 million receivable and payable with a single counterparty which were fully offset in the 

balance sheet in accordance with Australian Accounting Standards, on the basis that the Group intended to settle these on a net 

basis and had a legally enforceable right to do so.

The receivable and payable are nil at the balance date as they were net settled during the current year.

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8.4 

 Reconciliation of profit after income tax to net cash flows from 
operating activities

Overview

AASB 1054 Australian Additional Disclosures requires a reconciliation of profit or loss after income tax to net cash flows 
from operating activities.

1

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Profit after income tax 
Adjustments for:

Depreciation and impairment of property, plant and equipment
Amortisation of right-of-use lease assets
Amortisation/impairment of intangibles
Gain on sale of entities and businesses
Share of net loss of associates
Net foreign exchange losses (gains)
Fair value (gains) losses on financial assets
Equity-settled share-based payments expense

Balance sheet movements:

Decrease in other receivables
(Increase) decrease in net operating assets
Decrease in other payables
Increase in insurance contract liabilities
(Increase) decrease in reinsurance contract assets
Increase in net defined benefit obligation
Decrease in net tax assets

Net cash flows from operating activities

2023
US$M

1,364

59
58
76
(2)
2
9
(631)
42

8
(40)
(47)
1,087
(818)
1
335
1,503

RESTATED 
2022
US$M

595

31
61
90
(38)
7
(20)
1,295
39

18
109
(10)
620
29
– 
7
2,833

2

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136

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.5 

Share‑based payments

Overview

Share-based payments are equity-based compensation schemes provided to employees and executives. The Company 
issues shares from time to time under an Employee Share and Option Plan (the Plan). Any full-time or part-time employee 
of the Group or any equally-owned joint venture who is offered shares or options is eligible to participate in the Plan.

8.5.1 

Share schemes 

A summary of deferred equity award plans is set out below:

Current deferred equity plans

PLAN

AVAILABLE TO

NATURE OF AWARD

CONDITIONS

Annual 
Performance 
Incentive (API) 
(2022–2023)

Executives and 
other key senior 
employees

• 60%–67% delivered in 
cash (50% in the case 
of the Group CEO).

• 33%–40% deferred 
as conditional rights 
to fully paid ordinary 
shares of the Company 
(50% in the case of the 
Group CEO).

• Conditional rights 

to fully paid ordinary 
shares of the 
Company.

Long‑term 
Incentive (LTI) 
(2019–2023)

Executives and 
other key senior 
employees

The conditional rights are deferred in equal tranches over two, three 
or four years, dependent on the vesting period of the award.

API outcomes are subject to the achievement of:

• performance outcomes measured through a business scorecard 

containing key financial measures alongside strategically important 
non-financial measures; and 

• individual performance objectives measured both on what has been 

achieved and how it was achieved during the year.

The conditional rights vest in three tranches on achievement of the 
performance measures at the end of a three-year period as follows:

• 33% at the end of the three-year performance period;

• 33% on the first anniversary of the end of the performance period; and

• 34% on the second anniversary of the end of the performance period.

Vesting is subject to performance conditions as follows:

• For 2022–2023 awards, 70% of conditional rights are subject to the 

achievement against the Group cash ROE performance target 
based on a three-year arithmetic average; and 30% of conditional 
rights are based on the Group’s relative total shareholder return, 
compared against a global insurance peer group, over a three-year 
performance period. 

• For 2019–2021 awards, 50% of conditional rights are subject to the 

achievement against the Group cash ROE performance target 
based on the average of three individual annual performance ranges 
set over three individual years (for 2021 awards), or a three-year 
arithmetic average (for 2019 and 2020 awards); and 50% of conditional 
rights are based on the Group’s relative total shareholder return, 
compared against two independent peer groups, over a three-year 
performance period.

QShare (2023) Permanent 
employees 
in approved 
countries

• Conditional rights 

to fully paid ordinary 
shares of the 
Company which 
match the number 
of shares purchased 
by participants under 
the plan.

The conditional rights vest at the end of three years, subject to the 
following conditions: 

• participants must remain in the Group’s service throughout the three-year 

period except in cases where good leaver provisions apply. Under 
good leaver provisions (e.g. retirement, redundancy, ill health, injury 
or mutually agreed separation and death), all awarded conditional rights 
may vest and be converted into ordinary shares of the Company; and 

• participants must retain the underlying purchased shares throughout 

the three-year service period in order for the awards to vest. 

The conditional rights do not provide participants with entitlement 
to dividends (including notional dividends). 

136

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.5 

Share‑based payments

Overview

Share-based payments are equity-based compensation schemes provided to employees and executives. The Company 

issues shares from time to time under an Employee Share and Option Plan (the Plan). Any full-time or part-time employee 

of the Group or any equally-owned joint venture who is offered shares or options is eligible to participate in the Plan.

8.5.1 

Share schemes 

A summary of deferred equity award plans is set out below:

Current deferred equity plans

PLAN

AVAILABLE TO

NATURE OF AWARD

CONDITIONS

Annual 

Executives and 

• 60%–67% delivered in 

The conditional rights are deferred in equal tranches over two, three 

Performance 

other key senior 

cash (50% in the case 

or four years, dependent on the vesting period of the award.

Incentive (API) 

employees

of the Group CEO).

(2022–2023)

• 33%–40% deferred 

as conditional rights 

to fully paid ordinary 

shares of the Company 

(50% in the case of the 

Group CEO).

API outcomes are subject to the achievement of:

• performance outcomes measured through a business scorecard 

containing key financial measures alongside strategically important 

non-financial measures; and 

• individual performance objectives measured both on what has been 

achieved and how it was achieved during the year.

Long‑term 

Executives and 

• Conditional rights 

The conditional rights vest in three tranches on achievement of the 

Incentive (LTI) 

other key senior 

to fully paid ordinary 

performance measures at the end of a three-year period as follows:

(2019–2023)

employees

shares of the 

Company.

• 33% at the end of the three-year performance period;

• 33% on the first anniversary of the end of the performance period; and

• 34% on the second anniversary of the end of the performance period.

Vesting is subject to performance conditions as follows:

• For 2022–2023 awards, 70% of conditional rights are subject to the 

achievement against the Group cash ROE performance target 

based on a three-year arithmetic average; and 30% of conditional 

rights are based on the Group’s relative total shareholder return, 

compared against a global insurance peer group, over a three-year 

performance period. 

• For 2019–2021 awards, 50% of conditional rights are subject to the 

achievement against the Group cash ROE performance target 

based on the average of three individual annual performance ranges 

set over three individual years (for 2021 awards), or a three-year 

arithmetic average (for 2019 and 2020 awards); and 50% of conditional 

rights are based on the Group’s relative total shareholder return, 

compared against two independent peer groups, over a three-year 

performance period.

• participants must remain in the Group’s service throughout the three-year 

period except in cases where good leaver provisions apply. Under 

good leaver provisions (e.g. retirement, redundancy, ill health, injury 

or mutually agreed separation and death), all awarded conditional rights 

may vest and be converted into ordinary shares of the Company; and 

• participants must retain the underlying purchased shares throughout 

the three-year service period in order for the awards to vest. 

The conditional rights do not provide participants with entitlement 

to dividends (including notional dividends). 

QShare (2023) Permanent 

• Conditional rights 

The conditional rights vest at the end of three years, subject to the 

to fully paid ordinary 

following conditions: 

employees 

in approved 

countries

shares of the 

Company which 

match the number 

of shares purchased 

by participants under 

the plan.

Legacy deferred equity plans

PLAN

AVAILABLE TO:

NATURE OF AWARD

VESTING CONDITIONS

Executive 
Incentive 
Plan (EIP) 
(2017–2021)

Executives 
(before 1 Jan 
2019) and other 
key senior 
employees

• 40%–50% delivered 

in cash.

The conditional rights are deferred in four equal tranches, such that 25% 
vests on each of the first, second, third and fourth anniversaries of the award.

• 50%–60% deferred 

as conditional 
rights1 to fully paid 
ordinary shares of 
the Company.

EIP outcomes were subject to the achievement of:

• a blend of divisional combined operating ratios (COR) for 2021, 
or Group COR for 2017–2020, and Group cash ROE targets;

• divisional COR targets in the case of divisional employees; and

• individual performance objectives reflecting QBE’s strategic priorities.

Short‑term 
Incentive (STI) 
(2014–2021)

Executives and 
other key senior 
employees

• 67% delivered in cash 

(50% in the case 
of the Group CEO).

The conditional rights are deferred in two equal tranches, such that 50% 
vests on the first anniversary of the award and 50% vests on the second 
anniversary of the award.

• 33% deferred 
as conditional 
rights to fully paid 
ordinary shares of 
the Company (50% 
in the case of the 
Group CEO).

STI outcomes were subject to the achievement of:

• a blend of divisional CORs for 2021, or Group COR for 2017–2020, 

and Group cash ROE targets;

• divisional COR targets2 in the case of divisional employees; and

• individual performance objectives reflecting QBE’s strategic priorities.

1  For participants outside Australia, the deferred component was generally delivered in equal shares of conditional rights and cash.
2  Divisional return on allocated capital targets until 31 December 2016. 

Additionally, for the API, LTI, EIP and STI deferred equity plans:

• plan rules provide suitable discretion for the People & Remuneration Committee to adjust any formulaic outcome to ensure that 

awards made appropriately reflect performance;

• during the period from the grant date to the vesting date, further conditional rights are issued under the BSP to reflect dividends 

paid on ordinary shares of the Company. These conditional rights are subject to the same vesting conditions as the original grant 
of conditional rights;

• recipients must remain in the Group’s service throughout the service period in order for the awards to vest, except in cases where 
good leaver provisions apply. Vesting is also subject to malus, with clawback provisions applicable to allocations since 2021 under 
the plans;

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• under good leaver provisions, conditional rights remain subject to the performance and vesting conditions; and

’

• once vested, conditional rights can be exercised for no consideration.

8.5.2  Conditional rights
Details of the number of employee entitlements to conditional rights to ordinary shares granted, vested and transferred to employees 
during the year are as follows:

At 1 January
Granted
Dividends attaching
Vested and transferred to employees
Forfeited
At 31 December
Weighted average share price at date of vesting of conditional rights during the year
Weighted average fair value of conditional rights granted during the year

2023
NUMBER OF 
RIGHTS

12,660,558
6,477,583
593,365
(3,610,031)
(717,019)
15,404,456
A$15.14
A$14.24

2022
NUMBER OF 
RIGHTS

10,983,929
6,938,596
306,532
(3,741,501)
(1,826,998)
12,660,558
A$11.43
A$11.20

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138

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.5.3  Fair value of conditional rights
The fair value of conditional rights granted during the year was determined using the following significant assumptions:

Five-day volume weighted average price of instrument at grant date
Expected volatility
Risk-free rate
Dividend yield1
Expected life of instrument

2023

2022

A$

%

%

%

Years

12.57–15.26
27–29
3.04–3.83
5.41–6.21
0.1–5.0

11.42–12.61
28–29
1.49–3.12
– 
0.1–5.0

1 Applies to QShare where participants are not entitled to dividends on conditional rights during the vesting period. 

The fair value is determined using appropriate models including Monte Carlo simulations and the Black-Scholes model, depending 
on the vesting conditions. Some of the assumptions used may be based on historical data which is not necessarily indicative of future 
trends. Reasonable changes in these assumptions would not have a material impact on the Group’s financial statements. 

8.5.4  Employee options 

Options were issued to employees in 2004 in lieu of shares under the Plan with an exercise price of A$11.08. The options vested 
immediately and are exercisable until March 2024. The market value of all shares underlying the options at the balance date was nil 
(2022 A$0.2 million). During 2023, 14,250 options (2022 nil) were cancelled or forfeited and 2,250 options (2022 nil) were exercised. 
At 31 December 2023, 500 options remained, excluding notional dividends (2022 17,000). 

8.5.5  Share‑based payment expense

This expense, which includes amounts in relation to cash-settled share-based payment awards, was $47,712 thousand 
(2022 $44,344 thousand). These amounts are included in insurance service expenses.

8.5.6  Shares purchased on‑market
The Group may purchase shares on-market to satisfy entitlements under employee share schemes. The Group acquired 0.3 million 
(2022 0.1 million) such shares during the period at an average price of A$14.97 (2022 A$11.78).

How we account for the numbers

The fair value of the employee services received in exchange for the grant of equity-settled instruments is recognised 
as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value 
of the instruments granted, excluding the impact of any non-market vesting conditions. The impacts of non-market vesting 
conditions are included in assumptions about the number of instruments that are expected to become exercisable.

The fair value of each instrument is recognised evenly over the service period ending at the vesting date; however, 
at each balance date, the Group revises its estimates of the number of instruments that are expected to become 
exercisable due to the achievement of non-market vesting conditions. The Group recognises the impact of the revision 
of original estimates, if any, in profit or loss with a corresponding adjustment to equity.

 
138

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.5.3  Fair value of conditional rights

Five-day volume weighted average price of instrument at grant date

Expected volatility

Risk-free rate

Dividend yield1

Expected life of instrument

A$

%

%

%

Years

2023

2022

12.57–15.26

11.42–12.61

27–29

3.04–3.83

5.41–6.21

0.1–5.0

28–29

1.49–3.12

– 

0.1–5.0

1 Applies to QShare where participants are not entitled to dividends on conditional rights during the vesting period. 

The fair value is determined using appropriate models including Monte Carlo simulations and the Black-Scholes model, depending 

on the vesting conditions. Some of the assumptions used may be based on historical data which is not necessarily indicative of future 

trends. Reasonable changes in these assumptions would not have a material impact on the Group’s financial statements. 

8.5.4  Employee options 

Options were issued to employees in 2004 in lieu of shares under the Plan with an exercise price of A$11.08. The options vested 

immediately and are exercisable until March 2024. The market value of all shares underlying the options at the balance date was nil 

(2022 A$0.2 million). During 2023, 14,250 options (2022 nil) were cancelled or forfeited and 2,250 options (2022 nil) were exercised. 

At 31 December 2023, 500 options remained, excluding notional dividends (2022 17,000). 

8.5.5  Share‑based payment expense

This expense, which includes amounts in relation to cash-settled share-based payment awards, was $47,712 thousand 

(2022 $44,344 thousand). These amounts are included in insurance service expenses.

8.5.6  Shares purchased on‑market

The Group may purchase shares on-market to satisfy entitlements under employee share schemes. The Group acquired 0.3 million 

(2022 0.1 million) such shares during the period at an average price of A$14.97 (2022 A$11.78).

How we account for the numbers

The fair value of the employee services received in exchange for the grant of equity-settled instruments is recognised 

as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value 

of the instruments granted, excluding the impact of any non-market vesting conditions. The impacts of non-market vesting 

conditions are included in assumptions about the number of instruments that are expected to become exercisable.

The fair value of each instrument is recognised evenly over the service period ending at the vesting date; however, 

at each balance date, the Group revises its estimates of the number of instruments that are expected to become 

exercisable due to the achievement of non-market vesting conditions. The Group recognises the impact of the revision 

of original estimates, if any, in profit or loss with a corresponding adjustment to equity.

The fair value of conditional rights granted during the year was determined using the following significant assumptions:

Overview

8.6 

Key management personnel

AASB 124 Related Party Disclosures requires disclosure of the compensation of directors (executive and non-executive) 
and those persons having authority and responsibility for planning, directing and controlling the activities of the Group, 
either directly or indirectly. This group is collectively defined as key management personnel. Additional details in respect 
of key management personnel and their remuneration are shown in the Remuneration Report.

Short-term employee benefits
Post-employment benefits
Other long-term employment benefits
Share-based payments

2023
US$000

12,201
200
6
7,244
19,651

2022
US$000

13,446
192
101
7,088
20,827

How we account for the numbers

Short‑term employee benefits – profit sharing and bonus plans

A provision is recognised for profit sharing and bonus plans where there is a contractual obligation or where past 
practice has created a constructive obligation at the end of each reporting period. Bonus or profit sharing obligations 
are settled within 12 months from the balance date.

Post‑employment benefits – defined contribution plans

Defined contribution plans are post-employment benefit plans under which an entity pays a fixed contribution into a fund 
during the course of employment and has no legal or constructive obligation to pay further contributions if the fund does 
not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. 
Contributions to defined contribution plans are expensed as incurred. 

Other long‑term employee employment benefits

The liabilities for long service leave and annual leave are recognised in the provision for employee benefits and 
measured as the present value of expected future payments to be made in respect of services provided by employees 
up to the end of the reporting period. Consideration is given to expected future wage and salary levels, experience 
of employee departures and periods of service. Expected future payments are discounted using high quality corporate 
bond yields with terms and currencies that match, as closely as possible, the estimated future cash outflows. 
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised 
in profit or loss.

Share‑based payments

Further information in relation to remuneration under equity-based compensation schemes is provided in note 8.5.

Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date or when 
an employee accepts voluntary redundancy in exchange for these benefits. When applicable, the Group recognises 
termination benefits at the earlier of the date when the Group:

• can no longer withdraw the offer of those benefits; and

• recognises costs for a restructuring that is within the scope of AASB 137 Provisions, Contingent Liabilities 

and Contingent Assets and involves the payment of termination benefits.

In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the 
number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting 
period are discounted to present value.

139

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140

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.7 

Defined benefit plans

Overview

Defined benefit plans are post-employment plans which provide benefits to employees on retirement, disability or death. 
The benefits are based on years of service and an average salary calculation. Contributions are made to cover the current 
cash outflows from the plans and a liability is recorded to recognise the estimated accrued but not yet funded obligations.

FAIR VALUE OF PLAN ASSETS

PRESENT VALUE OF  
PLAN OBLIGATIONS

NET RECOGNISED SURPLUSES 
(DEFICITS)

DATE OF LAST 
ACTUARIAL 
ASSESSMENT

2023 
US$M

2022 
US$M

2023 
US$M

2022 
US$M

2023 
US$M

2022 
US$M

Defined benefit plan surpluses
Iron Trades Insurance staff trust
Janson Green final salary 
superannuation scheme1

31 Dec 2023

31 Dec 2023

Defined benefit plan deficits
QBE the Americas plan1
Other plans 2

31 Dec 2023
31 Dec 2023

211

120
331

153
24
177

205

117
322

154
23
177

(177)

(115)
(292)

(164)
(36)
(200)

(164)

(112)
(276)

(167)
(36)
(203)

34

5
39

(11)
(12)
(23)

41

5
46

(13)
(13)
(26)

1  Defined benefit plan obligations are funded.
2  Other plans include $8 million (2022 $9 million) of defined benefit post-employment plan obligations that are not funded.

The measurement of assets and liabilities in defined benefit plans makes it necessary to use assumptions about discount rates, 
expected future salary increases, investment returns, inflation and life expectancy. If actual outcomes differ materially from actuarial 
assumptions, this could result in a significant change in employee benefit expense recognised in profit or loss or in actuarial 
remeasurements recognised in other comprehensive income, together with the defined benefit assets and liabilities recognised 
in the balance sheet.

The Group does not control the investment strategies of defined benefit plan assets, most of which are managed by trustees. 
Nonetheless, the Group has agreed, as part of ongoing funding arrangements, that the trustees should manage their strategic asset 
allocation in order to minimise the risk of material adverse impact. In particular, the Group has agreed with the trustees to reduce the 
level of investment risk by investing in assets that match, where possible, the profile of the liabilities. This involves holding a mixture 
of government and corporate bonds. The Group believes that due to the long-term nature of the plan liabilities, a level of continuing 
equity investment is also appropriate.

The charge recognised in profit or loss in the year of $1 million (2022 $2 million) is included in insurance service expenses. 
Total employer contributions expected to be paid to the various plans in 2024 amount to $2 million.

How we account for the numbers

The surplus or deficit recognised in the balance sheet in respect of defined benefit plans is the present value of the defined 
benefit obligation at the balance date less the fair value of plan assets. The defined benefit obligation is calculated 
annually by independent actuaries using the projected unit credit method. The present value of the defined benefit 
obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate 
or government bonds that are denominated in the currency in which the benefits will be paid, and that have a term 
to maturity approximating the term of the related superannuation liability. Remeasurement gains and losses arising 
from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, 
and are recognised in other comprehensive income. Past service costs are recognised immediately in profit or loss.

140

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.7 

Defined benefit plans

Overview

Defined benefit plans are post-employment plans which provide benefits to employees on retirement, disability or death. 

The benefits are based on years of service and an average salary calculation. Contributions are made to cover the current 

cash outflows from the plans and a liability is recorded to recognise the estimated accrued but not yet funded obligations.

FAIR VALUE OF PLAN ASSETS

PRESENT VALUE OF  

PLAN OBLIGATIONS

NET RECOGNISED SURPLUSES 

(DEFICITS)

DATE OF LAST 

ACTUARIAL 

ASSESSMENT

2023 

US$M

2022 

US$M

2023 

US$M

2022 

US$M

2023 

US$M

2022 

US$M

Defined benefit plan surpluses

Iron Trades Insurance staff trust

31 Dec 2023

Janson Green final salary 

superannuation scheme1

31 Dec 2023

Defined benefit plan deficits

QBE the Americas plan1

Other plans 2

31 Dec 2023

31 Dec 2023

211

120

331

153

24

177

205

117

322

154

23

177

(177)

(115)

(292)

(164)

(36)

(200)

(164)

(112)

(276)

(167)

(36)

(203)

34

5

39

(11)

(12)

(23)

41

5

46

(13)

(13)

(26)

1  Defined benefit plan obligations are funded.

2  Other plans include $8 million (2022 $9 million) of defined benefit post-employment plan obligations that are not funded.

The measurement of assets and liabilities in defined benefit plans makes it necessary to use assumptions about discount rates, 

expected future salary increases, investment returns, inflation and life expectancy. If actual outcomes differ materially from actuarial 

assumptions, this could result in a significant change in employee benefit expense recognised in profit or loss or in actuarial 

remeasurements recognised in other comprehensive income, together with the defined benefit assets and liabilities recognised 

in the balance sheet.

The Group does not control the investment strategies of defined benefit plan assets, most of which are managed by trustees. 

Nonetheless, the Group has agreed, as part of ongoing funding arrangements, that the trustees should manage their strategic asset 

allocation in order to minimise the risk of material adverse impact. In particular, the Group has agreed with the trustees to reduce the 

level of investment risk by investing in assets that match, where possible, the profile of the liabilities. This involves holding a mixture 

of government and corporate bonds. The Group believes that due to the long-term nature of the plan liabilities, a level of continuing 

equity investment is also appropriate.

The charge recognised in profit or loss in the year of $1 million (2022 $2 million) is included in insurance service expenses. 

Total employer contributions expected to be paid to the various plans in 2024 amount to $2 million.

How we account for the numbers

The surplus or deficit recognised in the balance sheet in respect of defined benefit plans is the present value of the defined 

benefit obligation at the balance date less the fair value of plan assets. The defined benefit obligation is calculated 

annually by independent actuaries using the projected unit credit method. The present value of the defined benefit 

obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate 

or government bonds that are denominated in the currency in which the benefits will be paid, and that have a term 

to maturity approximating the term of the related superannuation liability. Remeasurement gains and losses arising 

from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, 

and are recognised in other comprehensive income. Past service costs are recognised immediately in profit or loss.

8.8 

Remuneration of auditors

Overview

QBE may engage the external auditor for non-audit services (which include assurance and non-assurance services) 
other than excluded services. This is subject to the general principle that the fees for non-assurance services 
should not exceed 50% of all fees paid to the external auditor in any one financial year. The Board believes some 
non-audit services are appropriate given the external auditor’s knowledge of the Group. External tax services are 
generally provided by an accounting firm other than the external auditor. Consistent with prior periods, the external 
auditor cannot provide excluded services which include preparing accounting records or financial reports or acting 
in a management capacity.

PricewaterhouseCoopers (PwC) Australian firm
Audit or review of financial reports of the ultimate parent entity
Audit of financial reports of controlled entities
Audit of statutory returns
Other assurance services
Taxation services
Advisory services

Related practices of PwC Australian firm (including overseas PwC firms)
Audit of financial reports of controlled entities
Audit of statutory returns
Other assurance services
Taxation services
Advisory services

Audit and assurance services
Other services

Other auditors
Audit of financial reports of controlled entities

2023
US$000

2,208
2,176
656
1,465
11
484
7,000

9,349
2,758
180
4
22
12,313
19,313
18,792
521
19,313

1,754

2022
US$000

2,051
2,223
553
725
14
– 
5,566

8,247
2,691
135
11
1,058
12,142
17,708
16,625
1,083
17,708

1,231

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142

Notes to the financial statements  continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.9 

Ultimate parent entity information

Overview

The Corporations Act 2001 requires the disclosure of summarised financial information relating to the ultimate parent 
entity, QBE Insurance Group Limited.

8.9.1 

Summarised financial data of QBE Insurance Group Limited (the Company)

Profit after income tax 
Other comprehensive income (loss)
Total comprehensive income (loss)
Assets maturing within 12 months1
Shares in controlled entities
Other assets
Total assets
Liabilities maturing within 12 months 2
Borrowings
Total liabilities 
Net assets
Contributed equity
Treasury shares held in trust
Foreign currency translation reserve
Other reserves
Retained profits
Total equity

2023
US$M

16
77
93
712
13,153
175
14,040
602
2,798
3,400
10,640
9,381
(3)
(38)
121
1,179
10,640

2022
US$M

225
(795)
(570)
859
13,072
333
14,264
568
2,738
3,306
10,958
9,242
(1)
(39)
112
1,644
10,958

1  Includes amounts due from controlled entities of $434 million (2022 $360 million). 2023 reflects disclosure based on maturity date. 2022 has been 
updated for consistency and includes a reclassification of $300 million to other assets, with no change to reported profit, total assets or total equity.

2  Includes amounts due to controlled entities of $366 million (2022 $241 million). 2023 reflects disclosure based on maturity date. 2022 
has been updated for consistency and includes a reclassification of $234 million from borrowings, with no change to reported profit, 
total liabilities or total equity.

8.9.2  Guarantees and contingent liabilities

Support of the Group’s participation in Lloyd’s
Support of other insurance operations of controlled entities

2023
US$M

2,361
1,571

2022
US$M

2,330
2,383

8.9.3  Tax consolidation legislation
The accounting in relation to the legislation is set out in note 6.2.4. On adoption of the tax consolidation legislation, the directors of the 
Company and its wholly-owned Australian controlled entities entered into a tax sharing and tax funding agreement that requires the 
Australian entities to fully compensate the Company for current tax liabilities and to be fully compensated by the Company for any 
current tax or deferred tax assets in respect of tax losses arising from external transactions occurring after the date of implementation 
of the tax consolidation legislation. The contributions are allocated by reference to the notional taxable income of each Australian entity.

Details of franking credits available to shareholders are shown in note 5.4.

How we account for the numbers

The financial information of the ultimate parent entity of the Group has been prepared on the same basis as the 
consolidated financial report except for shares in controlled entities, which are recorded at cost less any provision 
for impairment. 

 
142

Notes to the financial statements  continued

FOR THE YEAR ENDED 31 DECEMBER 2023

8. 

OTHER

8.9 

Ultimate parent entity information

Overview

The Corporations Act 2001 requires the disclosure of summarised financial information relating to the ultimate parent 

entity, QBE Insurance Group Limited.

Directors' declaration

FOR THE YEAR ENDED 31 DECEMBER 2023

In the directors’ opinion:

(a)  the financial statements and notes set out on pages 68 to 142 are in accordance with the Corporations Act 2001, including:

(i)  complying with accounting standards, the Corporations Regulations 2001 and other mandatory professional reporting 

requirements; and 

(ii)  giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its performance for the financial 

year ended on that date; and

(b)  there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Note 1.2.1 confirms that the financial statements comply with International Financial Reporting Standards as issued by the International 
Accounting Standards Board.

The directors have been given the declarations by the Group Chief Executive Officer and Group Chief Financial Officer required 
by section 295A of the Corporations Act 2001 and as recommended under the ASX Corporate Governance Council’s Corporate 
Governance Principles and Recommendations.

8.9.1 

Summarised financial data of QBE Insurance Group Limited (the Company)

Signed in Sydney this 16th day of February 2024 in accordance with a resolution of the directors.

143

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Michael Wilkins AO 
Director

Andrew Horton 
Director

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2023

US$M

16

77

93

712

13,153

175

14,040

602

2,798

3,400

10,640

9,381

(3)

(38)

121

1,179

10,640

2022

US$M

225

(795)

(570)

859

13,072

333

14,264

568

2,738

3,306

10,958

9,242

(1)

(39)

112

1,644

10,958

2023

US$M

2,361

1,571

2022

US$M

2,330

2,383

Profit after income tax 

Other comprehensive income (loss)

Total comprehensive income (loss)

Assets maturing within 12 months1

Shares in controlled entities

Liabilities maturing within 12 months 2

Contributed equity

Treasury shares held in trust

Foreign currency translation reserve

Other assets

Total assets

Borrowings

Total liabilities 

Net assets

Other reserves

Retained profits

Total equity

1  Includes amounts due from controlled entities of $434 million (2022 $360 million). 2023 reflects disclosure based on maturity date. 2022 has been 

updated for consistency and includes a reclassification of $300 million to other assets, with no change to reported profit, total assets or total equity.

2  Includes amounts due to controlled entities of $366 million (2022 $241 million). 2023 reflects disclosure based on maturity date. 2022 

has been updated for consistency and includes a reclassification of $234 million from borrowings, with no change to reported profit, 

total liabilities or total equity.

8.9.2  Guarantees and contingent liabilities

Support of the Group’s participation in Lloyd’s

Support of other insurance operations of controlled entities

8.9.3  Tax consolidation legislation

The accounting in relation to the legislation is set out in note 6.2.4. On adoption of the tax consolidation legislation, the directors of the 

Company and its wholly-owned Australian controlled entities entered into a tax sharing and tax funding agreement that requires the 

Australian entities to fully compensate the Company for current tax liabilities and to be fully compensated by the Company for any 

current tax or deferred tax assets in respect of tax losses arising from external transactions occurring after the date of implementation 

of the tax consolidation legislation. The contributions are allocated by reference to the notional taxable income of each Australian entity.

Details of franking credits available to shareholders are shown in note 5.4.

How we account for the numbers

The financial information of the ultimate parent entity of the Group has been prepared on the same basis as the 

consolidated financial report except for shares in controlled entities, which are recorded at cost less any provision 

for impairment. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
144

Independent auditor's report

TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

Report on the audit of the financial report

Our opinion
In our opinion:

The accompanying financial report of QBE Insurance Group Limited (the Company) and its controlled entities (together the Group) 
is in accordance with the Corporations Act 2001, including:

(a)  giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its financial performance for the year 

then ended 

(b)  complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited

The Group financial report comprises:

• the consolidated balance sheet as at 31 December 2023

• the consolidated statement of comprehensive income for the year then ended

• the consolidated statement of changes in equity for the year then ended

• the consolidated statement of cash flows for the year then ended

• the notes to the financial statements, including material accounting policy information and other explanatory information 

• the directors’ declaration.

Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further 
described in the Auditor’s responsibilities for the audit of the financial report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and 
the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional 
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. 
We have also fulfilled our other ethical responsibilities in accordance with the Code.

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, Sydney NSW 2001

T: +61 2 8266 0000, F: +61 2 8266 9999

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124

T: +61 2 9659 2476, F: +61 2 8266 9999

Liability limited by a scheme approved under Professional Standards Legislation.

144

Independent auditor's report

TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

Report on the audit of the financial report

Our opinion

In our opinion:

then ended 

The accompanying financial report of QBE Insurance Group Limited (the Company) and its controlled entities (together the Group) 

is in accordance with the Corporations Act 2001, including:

(a)  giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its financial performance for the year 

(b)  complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited

The Group financial report comprises:

• the consolidated balance sheet as at 31 December 2023

• the consolidated statement of comprehensive income for the year then ended

• the consolidated statement of changes in equity for the year then ended

• the consolidated statement of cash flows for the year then ended

• the notes to the financial statements, including material accounting policy information and other explanatory information 

• the directors’ declaration.

Basis for opinion

Independence

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further 

described in the Auditor’s responsibilities for the audit of the financial report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and 

the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional 

Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. 

We have also fulfilled our other ethical responsibilities in accordance with the Code.

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, Sydney NSW 2001

T: +61 2 8266 0000, F: +61 2 8266 9999

T: +61 2 9659 2476, F: +61 2 8266 9999

Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124

Liability limited by a scheme approved under Professional Standards Legislation.

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Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement. 
Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably 
be expected to influence the economic decisions of users taken on the basis of the financial report.

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial report 
as a whole, taking into account the geographic and management structure of the Group, its accounting processes and controls and 
the industry in which it operates.

Audit scope
• Our audit focused on where the Group made subjective judgements; for example, significant accounting estimates involving 

assumptions and inherently uncertain future events.

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• In conjunction with component auditors, we conducted an audit of the most financially significant components of the Group, being 
the Australia Pacific, International and North America divisions. In addition, we performed specific risk focused audit procedures 
in relation to the captive reinsurer, Equator Re, and other head office entities, where appropriate, as well as audit procedures over 
the consolidation process. 

• We determined the level of direction and supervision we needed to have over the audit work performed by component auditors 

to be satisfied that sufficient audit evidence had been obtained for the purposes of our opinion.

• We kept in regular communication with component auditors throughout the year with conference calls and written instructions.

• We also ensured that our team, including the component auditors across the Group, possessed the appropriate competence and 
capabilities needed for the audit of a complex global insurer. This included industry expertise as well as specialists and experts 
in accounting technical, information technology, actuarial, tax and valuations.

Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for 
the current period. The key audit matters were addressed in the context of our audit of the financial report as a whole, and in forming our 
opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular 
audit procedure is made in that context. We communicated the key audit matters to the Board Audit Committee.

Key audit matter

How our audit addressed the key audit matter

Transition to AASB 17 Insurance Contracts

(Refer to note 8.1.1)

On 1 January 2023, the Group transitioned 
to reporting under the new accounting standard 
AASB 17 Insurance Contracts which replaced 
AASB 1023 General Insurance Contracts. 

The Group has evaluated the requirements of 
AASB 17 and exercised judgement to develop 
accounting policies and determine appropriate 
methodologies in order to comply with AASB 17. 
In particular, the determination of the measurement 
models (general model or premium allocation 
approach) to apply under the standard, the 
determination of risk adjustment and onerous 
contract methodologies, and the determination of 
the discount rate (adjusted for an illiquidity premium 
to reflect the liquidity characteristics of insurance 
contracts), were deemed to be significant to the 
overall impact of transition. The new standard has 
also had a significant impact on the disclosures 
in the financial statements.

Our procedures included:

• Assessing the significant judgements used by the Group to determine 
the relevant accounting policies against the requirements of AASB 17. 
This included judgements used to determine the measurement models 
adopted, risk adjustment, onerous contracts and discount rates used. 

• Evaluating the appropriateness of the Group’s premium allocation 

approach eligibility analysis for insurance and reinsurance contracts with 
coverage periods greater than one year, including testing the relevant 
supporting data, the significant assumptions used and scenarios applied, 
and testing the accuracy of models used.

• Evaluating the application of the general model for specific insurance and 
reinsurance contracts. This included assessing the underlying significant 
assumptions used to derive the fulfilment cash flows and related 
contractual service margin, where applicable, as well as the related 
revenue recognition.

• Evaluating the appropriateness of the methodology used to determine the 
risk adjustment, including assessing the underlying discounted cash flow 
model and significant assumptions. 

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146

Independent auditor's report
TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

Key audit matter

How our audit addressed the key audit matter

Due to the significance of the changes introduced 
by the standard, we considered the transition to the 
new standard to be a key audit matter.

Valuation of insurance contract liabilities

(Refer to note 2.2)

As at 31 December 2023, the Group held 
US$27,567 million of insurance contract liabilities 
of which there are two components. 

The first component relates to the liability for 
remaining coverage which comprises fulfilment cash 
flows related to future services to be provided under 
groups of insurance contracts. Where the general 
model is adopted, this balance is also inclusive of 
a risk adjustment, contractual service margin and 
discounting.

The second component relates to the liability for 
incurred claims and comprises fulfilment cash flows 
related to past services provided under groups of 
insurance contracts which have not yet been paid, 
including claims that have been incurred but not yet 
reported (IBNR) and claims incurred but not enough 
reported (IBNER). This balance is also inclusive 
of a risk adjustment and discounting.

We considered the valuation of insurance 
contract liabilities to be a key audit matter due to 
the significant judgement required by the Group 
in estimating future cash flows, and in particular 
IBNR and IBNER. These estimates are inherently 
uncertain and can be further impacted by a number 
of factors such as ‘long-tail’ classes and natural 
catastrophe events occurring close to year end 
where data is limited and as a result require greater 
reliance on expert judgement.  

The risk adjustment is also a key area of judgement 
given it is intended to reflect the compensation 
an entity requires for bearing the uncertainty about 
the amount and timing of the cash flows associated 
with insurance contracts that arise from non-
financial risks. 

• Evaluating the onerous contract methodology used to identify any 

groups of onerous contracts on transition. Where onerous contracts 
were identified, we assessed the appropriateness of the significant 
assumptions and recalculated the relevant loss recovery components.  

• Assessing the updated discounting methodology, including the 

determination of the illiquidity premium against the requirements of the 
standard and comparing to external market data where available. 

• Testing the supporting calculations related to the material transition 

adjustments at 1 January 2022, with the standard applied retrospectively.

We also assessed the reasonableness of the new and restated disclosures 
in the financial report against the requirements of AASB 17.

Together with PwC actuarial experts, our procedures included:

• Developing an understanding of the control activities relevant to our 
audit over the Group’s process for determining insurance contract 
liabilities, and for certain control activities, assessing whether they were 
appropriately designed and operating effectively on a sample basis, 
throughout the year ended 31 December 2023.

• Developing point estimates for selected groups of contracts, focusing on 
groups of contracts which are material and have heightened uncertainty. 

• Testing specific groups of contracts including those most impacted 

by the higher inflationary environment, Covid-19, war conflict, natural 
catastrophes and other large losses by developing an understanding and 
assessing the methodology and assumptions used by the Group and, 
where available, comparing to historical experience of the Group, current 
industry trends and benchmarks, and other publicly available information. 

• Performing risk-based testing procedures on the remaining groups 

of contracts, where there have been material movements and related 
assumption changes. 

• Evaluating the appropriateness and reliability of significant data used 
to estimate future cash flows associated with groups of contracts, 
including agreeing a sample of claims to underlying information.

• Testing the onerous contract assessments, including evaluating the 

significant assumptions against relevant supporting information.

• Testing the discount rate applied through evaluating yield curves, claims 
payment patterns and the adopted illiquidity premium. This included 
comparing the rates applied to external market data and the payment 
patterns to historical information.

• Evaluating the relevant underlying calculations used to derive the risk 

adjustment, including the significant assumptions.

We also assessed the reasonableness of the related disclosures in the 
financial report against the requirements of Australian Accounting Standards.

146

Independent auditor's report

TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

Key audit matter

How our audit addressed the key audit matter

Key audit matter

How our audit addressed the key audit matter

Due to the significance of the changes introduced 

• Evaluating the onerous contract methodology used to identify any 

by the standard, we considered the transition to the 

groups of onerous contracts on transition. Where onerous contracts 

new standard to be a key audit matter.

were identified, we assessed the appropriateness of the significant 

As at 31 December 2023, the Group held 

Together with PwC actuarial experts, our procedures included:

assumptions and recalculated the relevant loss recovery components.  

• Assessing the updated discounting methodology, including the 

determination of the illiquidity premium against the requirements of the 

standard and comparing to external market data where available. 

• Testing the supporting calculations related to the material transition 

adjustments at 1 January 2022, with the standard applied retrospectively.

We also assessed the reasonableness of the new and restated disclosures 

in the financial report against the requirements of AASB 17.

• Developing an understanding of the control activities relevant to our 

audit over the Group’s process for determining insurance contract 

liabilities, and for certain control activities, assessing whether they were 

appropriately designed and operating effectively on a sample basis, 

throughout the year ended 31 December 2023.

• Developing point estimates for selected groups of contracts, focusing on 

groups of contracts which are material and have heightened uncertainty. 

• Testing specific groups of contracts including those most impacted 

by the higher inflationary environment, Covid-19, war conflict, natural 

catastrophes and other large losses by developing an understanding and 

assessing the methodology and assumptions used by the Group and, 

where available, comparing to historical experience of the Group, current 

industry trends and benchmarks, and other publicly available information. 

• Performing risk-based testing procedures on the remaining groups 

of contracts, where there have been material movements and related 

assumption changes. 

• Evaluating the appropriateness and reliability of significant data used 

to estimate future cash flows associated with groups of contracts, 

including agreeing a sample of claims to underlying information.

• Testing the onerous contract assessments, including evaluating the 

significant assumptions against relevant supporting information.

• Testing the discount rate applied through evaluating yield curves, claims 

payment patterns and the adopted illiquidity premium. This included 

comparing the rates applied to external market data and the payment 

patterns to historical information.

• Evaluating the relevant underlying calculations used to derive the risk 

adjustment, including the significant assumptions.

We also assessed the reasonableness of the related disclosures in the 

financial report against the requirements of Australian Accounting Standards.

Valuation of insurance contract liabilities

(Refer to note 2.2)

US$27,567 million of insurance contract liabilities 

of which there are two components. 

The first component relates to the liability for 

remaining coverage which comprises fulfilment cash 

flows related to future services to be provided under 

groups of insurance contracts. Where the general 

model is adopted, this balance is also inclusive of 

a risk adjustment, contractual service margin and 

discounting.

The second component relates to the liability for 

incurred claims and comprises fulfilment cash flows 

related to past services provided under groups of 

insurance contracts which have not yet been paid, 

including claims that have been incurred but not yet 

reported (IBNR) and claims incurred but not enough 

reported (IBNER). This balance is also inclusive 

of a risk adjustment and discounting.

We considered the valuation of insurance 

contract liabilities to be a key audit matter due to 

the significant judgement required by the Group 

in estimating future cash flows, and in particular 

IBNR and IBNER. These estimates are inherently 

uncertain and can be further impacted by a number 

of factors such as ‘long-tail’ classes and natural 

catastrophe events occurring close to year end 

where data is limited and as a result require greater 

reliance on expert judgement.  

The risk adjustment is also a key area of judgement 

given it is intended to reflect the compensation 

an entity requires for bearing the uncertainty about 

the amount and timing of the cash flows associated 

with insurance contracts that arise from non-

financial risks. 

Valuation of reinsurance contract assets

(Refer to note 2.2)

As at 31 December 2023, the Group held 
US$8,034 million of reinsurance contract assets. 

We considered the valuation of reinsurance 
contract assets to be a key audit matter due to 
the significant judgement applied by the Group in 
valuing the associated insurance contract liabilities 
that have been reinsured, the complexity of the 
application and coverage of divisional and Group-
wide reinsurance programmes, and the risk of non-
performance by the reinsurers. 

The Group has also executed a significant loss 
portfolio transfer (LPT) during the year. This has 
required the use of judgement in the accounting 
for the contract and significant assumptions used. 

Carrying value of goodwill

(Refer to note 7.2)

As at 31 December 2023, the Group held US$1,596 
million of goodwill. 

An impairment assessment is performed annually 
by the Group, or more frequently if events or 
circumstances indicate that the carrying value 
of goodwill may be impaired.

Potential impairment is identified by comparing the 
value-in-use of the cash-generating unit (CGU) 
to its carrying value, including goodwill. The value-
in-use for each of the CGUs is estimated by the 
Group using a discounted cash flow model which 
includes significant judgements and assumptions 
relating to cash flow projections, investment 
returns, terminal growth rates and discount rates.

We considered the carrying value of goodwill 
a key audit matter due to the inherent estimation 
uncertainty and subjectivity in judgements 
in a number of the assumptions. 

Our procedures included:

• Developing an understanding of the control activities relevant to our 
audit over the Group’s process for determining reinsurance contract 
assets, and for certain control activities, assessing whether they were 
appropriately designed and operating effectively on a sample basis, 
throughout the year ended 31 December 2023. 

• Evaluating a sample of reinsurance recoveries held by divisions and the 
Group against underlying contracts to assess the existence of cover and 
appropriateness of their recognition.

• Assessing the risk of non-performance of reinsurers by considering 

the payment history and credit worthiness for a sample of reinsurance 
recoveries.

• Assessing the accounting adopted for the LPT, including evaluating the 

underlying claims data used to recognise the related recoveries.

We also assessed the reasonableness of the related disclosures in the 
financial report against the requirements of Australian Accounting Standards.

Our procedures included:

• Evaluating the determination and composition of the CGUs to which 
goodwill is allocated in the context of the Group’s operations and 
reporting processes.

• Evaluating the appropriateness of the value-in-use methodology adopted 

against the requirements of Australian Accounting Standards.

• Developing an understanding of the process by which the cash flow 
projections were developed and comparing the cash flows included 
in the impairment assessment with the three year business plan 
presented to the Board.

• Evaluating the appropriateness of significant assumptions used to derive 
the cash flow projections by comparing to external market and industry 
data where available, and current and past performance of the CGUs.

• Together with PwC valuation experts, we:

 – Assessed the consistency of the terminal growth rates and investment 

returns with available external information.

 – Reperformed the calculation of the discount rates applied to cash flow 
projections, comparing key inputs (including risk-free rates, market 
premiums and unlevered betas) to industry and other benchmarks.

• Testing the mathematical accuracy of the models which were used 

to determine the value-in-use of the CGUs.

We also assessed the reasonableness of the related disclosures in the 
financial report against the requirements of Australian Accounting Standards.

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148

Independent auditor's report
TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

Key audit matter

How our audit addressed the key audit matter

Recoverability of deferred tax assets 
in the North American tax group

(Refer to note 6.2)

The Group held US$420 million of net deferred tax 
assets at 31 December 2023 comprised of carry 
forward tax losses and deductible temporary 
differences related to the North American 
tax group.

The Group performs a recoverability assessment 
at each balance date in order to evaluate the 
expected utilisation of the deferred tax assets. 
The assessment is dependent upon the future 
profitability of the entities within the North American 
tax group, as well as the period over which tax 
losses will be available for recovery. 

We considered the recoverability of the deferred 
tax assets in the North American tax group a 
key audit matter due to the inherent estimation 
uncertainty and subjectivity in judgements in a 
number of assumptions, including taxable income 
projections, investment returns, and terminal 
growth rates.

Valuation of level 3 investments

(Refer to note 3.2)

The Group held US$28,670 million of investments 
at 31 December 2023, of which US$1,828 million 
were classified as level 3 in accordance with 
AASB 13 Fair Value Measurement.

The Group exercises judgement in valuing level 3 
investments as there are significant unobservable 
inputs as a result of market illiquidity and/or 
instrument complexity.

The level 3 investments held at fair value largely 
consist of infrastructure assets and unlisted 
property trusts.

We considered the valuation of level 3 investments 
a key audit matter due to the extent of judgement 
involved in determining the fair value of investments 
as a result of significant unobservable market inputs. 

Our procedures included:

• Evaluating the appropriateness of the recoverability assessment against 
the requirements of Australian Accounting Standards, and in particular 
the “convincing other evidence” test under AASB 112 Income Taxes.

• Evaluating the appropriateness of significant assumptions used to derive 
the taxable income projections, by comparing with external market and 
industry data where available, and current and past performance of the 
entities within the North American tax group. 

• Testing the mathematical accuracy of the models which were used 

to determine the recoverability of the deferred tax assets.

We also assessed the reasonableness of the related disclosures in the 
financial report against the requirements of Australian Accounting Standards.

Our procedures included:

• Developing an understanding of the control activities relevant to our 

audit over the Group’s process for measuring level 3 investments at fair 
value, and for certain control activities, assessing whether they were 
appropriately designed and were operating effectively on a sample basis, 
throughout the year ended 31 December 2023.

• Evaluating the appropriateness of the valuation methodologies used 

against the requirements of Australian Accounting Standards.

• For a sample of infrastructure assets and unlisted property trusts, 

where the Group determines the fair value with reference to external 
information, we:

 – Compared the price used by the Group to the 31 December 2023 price 

quoted by the fund manager.

 – Evaluated the reliability and accuracy of relevant past fund manager 

statements by reference to the most recent audited financial statements 
of the relevant funds. 

 – Inspected the most recent reports provided by the fund manager setting 
out the controls in place at the fund manager, including consideration 
of the assurance reports on the design and operating effectiveness 
of those controls, where available.

We also assessed the reasonableness of the related disclosures in the 
financial report against the requirements of Australian Accounting Standards.

Key audit matter

How our audit addressed the key audit matter

Key audit matter

How our audit addressed the key audit matter

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Operation of IT systems and controls

The Group’s operations and financial reporting 
processes are heavily dependent on information 
technology (IT) systems for the processing and 
recording of a significant volume of transactions.

For material financial statement balances, we developed an understanding 
of the business processes, IT systems used to generate and support those 
balances and associated IT application controls and IT dependencies 
in manual controls.

A fundamental component of these IT systems 
is ensuring that risks in relation to inappropriate 
user access management, unauthorised program 
changes and IT operating protocols are managed. 

Our procedures included evaluating the design and testing the operating 
effectiveness, where relevant, of certain controls over the continued 
integrity of the IT systems that are relevant to financial reporting. 
This involved assessing, where relevant to the audit:

Due to this, we considered the operation of 
financial reporting IT systems and relevant controls 
to be a key audit matter.

• Change management: the processes and controls used to develop, test and 
authorise changes to the functionality and configurations within systems.

• System development: the project disciplines which ensure that significant 

developments or implementation are appropriately tested before 
implementation and that data is converted and transferred completely 
and accurately.

• Security: the access controls designed to enforce segregation of duties, 
govern the use of generic and privileged accounts or ensure that data 
is only changed through authorised means.

• IT operations: the controls over operations are used to ensure that any 

issues that arise are managed separately. 

Within the scope of our audit where technology services are provided 
by a third party, we considered assurance reports from the third party’s 
auditor on the design and operating effectiveness of controls.

We also carried out tests, on a sample basis, of IT application controls and IT 
dependencies in manual controls that were key to our audit testing in order to 
assess the accuracy of certain system calculations, the generation of certain 
reports and the operation of certain system enforced access controls. 

Where we identified design or operating effectiveness matters relating to IT 
systems or application controls relevant to our audit, we performed alternative 
or additional audit procedures. This included considering mitigating controls 
in order to respond to the impact on our overall audit approach.

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148

Independent auditor's report

TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

The Group held US$420 million of net deferred tax 

Our procedures included:

Recoverability of deferred tax assets 

in the North American tax group

(Refer to note 6.2)

assets at 31 December 2023 comprised of carry 

forward tax losses and deductible temporary 

differences related to the North American 

tax group.

The Group performs a recoverability assessment 

at each balance date in order to evaluate the 

expected utilisation of the deferred tax assets. 

The assessment is dependent upon the future 

profitability of the entities within the North American 

tax group, as well as the period over which tax 

losses will be available for recovery. 

We considered the recoverability of the deferred 

tax assets in the North American tax group a 

key audit matter due to the inherent estimation 

uncertainty and subjectivity in judgements in a 

number of assumptions, including taxable income 

projections, investment returns, and terminal 

growth rates.

Valuation of level 3 investments

(Refer to note 3.2)

• Evaluating the appropriateness of the recoverability assessment against 

the requirements of Australian Accounting Standards, and in particular 

the “convincing other evidence” test under AASB 112 Income Taxes.

• Evaluating the appropriateness of significant assumptions used to derive 

the taxable income projections, by comparing with external market and 

industry data where available, and current and past performance of the 

entities within the North American tax group. 

• Testing the mathematical accuracy of the models which were used 

to determine the recoverability of the deferred tax assets.

We also assessed the reasonableness of the related disclosures in the 

financial report against the requirements of Australian Accounting Standards.

The Group held US$28,670 million of investments 

Our procedures included:

at 31 December 2023, of which US$1,828 million 

were classified as level 3 in accordance with 

AASB 13 Fair Value Measurement.

The Group exercises judgement in valuing level 3 

investments as there are significant unobservable 

inputs as a result of market illiquidity and/or 

instrument complexity.

• Developing an understanding of the control activities relevant to our 

audit over the Group’s process for measuring level 3 investments at fair 

value, and for certain control activities, assessing whether they were 

appropriately designed and were operating effectively on a sample basis, 

throughout the year ended 31 December 2023.

• Evaluating the appropriateness of the valuation methodologies used 

against the requirements of Australian Accounting Standards.

The level 3 investments held at fair value largely 

consist of infrastructure assets and unlisted 

• For a sample of infrastructure assets and unlisted property trusts, 

where the Group determines the fair value with reference to external 

property trusts.

information, we:

We considered the valuation of level 3 investments 

a key audit matter due to the extent of judgement 

involved in determining the fair value of investments 

as a result of significant unobservable market inputs. 

 – Compared the price used by the Group to the 31 December 2023 price 

quoted by the fund manager.

 – Evaluated the reliability and accuracy of relevant past fund manager 

statements by reference to the most recent audited financial statements 

of the relevant funds. 

 – Inspected the most recent reports provided by the fund manager setting 

out the controls in place at the fund manager, including consideration 

of the assurance reports on the design and operating effectiveness 

of those controls, where available.

We also assessed the reasonableness of the related disclosures in the 

financial report against the requirements of Australian Accounting Standards.

 
 
 
 
 
 
 
 
 
 
 
 
 
150

Independent auditor's report
TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

Other information
The directors are responsible for the other information. The other information comprises the information included in the annual 
report for the year ended 31 December 2023, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance 
conclusion thereon through our opinion on the financial report. We have issued a separate opinion on the remuneration report.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider 
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, 
or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, 
we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing 
to report in this regard.

Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance 
with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine 
is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, 
whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going 
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless 
the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, 
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level 
of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect 
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually 
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the 
financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards 
Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor’s report.

150

Independent auditor's report

TO THE MEMBERS OF QBE INSURANCE GROUP LIMITED

or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, 

we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing 

to report in this regard.

Responsibilities of the directors for the financial report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance 

with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine 

is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, 

whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going 

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless 

the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, 

whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level 

of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect 

a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually 

or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the 

financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards 

Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor’s report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual 

report for the year ended 31 December 2023, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance 

conclusion thereon through our opinion on the financial report. We have issued a separate opinion on the remuneration report.

Report on the remuneration report

Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 31 December 2023.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider 

whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, 

In our opinion, the remuneration report of QBE Insurance Group Limited for the year ended 31 December 2023 complies with 
section 300A of the Corporations Act 2001.

Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with 
section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our 
audit conducted in accordance with Australian Auditing Standards. 

PricewaterhouseCoopers

Voula Papageorgiou 
Partner

Sydney 
16 February 2024

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152

Shareholder information

The Company was incorporated in Australia, is listed on the Australian Securities Exchange (ASX) and trades under the code ‘QBE’.

Registered office

QBE Insurance Group Limited

Level 18, 388 George Street 
Sydney NSW 2000 Australia

Telephone: +61 2 9375 4444 
Facsimile: +61 2 9231 6104

Website: www.qbe.com

QBE website
QBE’s website provides investors with information about QBE including annual reports, corporate governance statements, 
sustainability reports, half-yearly reports and announcements to the ASX. The website also offers regular QBE share price 
updates, a calendar of events, a history of QBE’s dividends and online access to your shareholding details via the share registry.

Shareholder information and enquiries
Enquiries and correspondence regarding shareholdings can be directed to QBE’s share registry:

Computershare Investor Services Pty Limited (Computershare)

GPO Box 2975 
Melbourne VIC 3001 Australia

452 Johnston Street 
Abbotsford VIC 3067 Australia

Telephone: 1300 723 487 (Australia) 
Telephone: +61 3 9415 4840 (International)

Website: www.computershare.com.au 
Email: qbe.queries@computershare.com.au

For security purposes, you will need to quote your Securityholder Reference Number (SRN) or Holder Identification Number (HIN).

If you are broker (CHESS) sponsored, queries relating to incorrect registrations and changes to name and/or address can only 
be processed by your stockbroker. Please contact your stockbroker. Computershare cannot assist you with these changes.

Shareholding details online
Manage your shareholding online by visiting QBE’s share registry, Computershare. Log onto www.investorcentre.com to view your 
holding balance and dividend statements, to update your address (if you are registered with an SRN) or direct credit instructions, 
provide DRP or BSP instructions or change/add your tax file number (TFN)/Australian Business Number (ABN) details. 

You may also register to receive shareholder documentation electronically including your dividend statements, notices of meetings 
and proxy and annual reports.

Privacy legislation
Chapter 2C of the Corporations Act 2001 requires information about you as a securityholder (including your name, address and 
details of the securities you hold) to be included in QBE’s share register. These details must continue to be included in the public 
register even if you cease to be a securityholder. A copy of the privacy policy is available on Computershare’s website.

Dividends
QBE pays cash dividends to shareholders resident in Australia and New Zealand by direct credit. Shareholders in the United Kingdom 
and the United States also have the option to receive their cash dividends by direct credit, although it is not mandatory. The benefit 
to shareholders of the direct credit facility is access to cleared funds quickly and securely, reducing the risk of cheques being lost 
or stolen. Shareholders in other countries will receive cheque payments in Australian dollars if they have not elected to receive their 
payment by direct credit. Shareholders receive a dividend statement for tax records, either by post or by email depending on the 
selected communications option.

Eligible shareholders can participate in QBE’s DRP and BSP when the plans are active. The DRP enables shareholders to subscribe 
for additional shares. The BSP is a bonus share plan whereby the dividend entitlement is forgone for bonus shares in lieu of the 
dividend. In order to participate in either the DRP or BSP, shareholders must have a minimum shareholding of 100 shares and have 
a registered address in Australia or New Zealand.

Participants may change their election to participate in the DRP and BSP at any time. DRP/BSP election cut-off dates and application 
forms are available from QBE’s website.

152

Shareholder information

The Company was incorporated in Australia, is listed on the Australian Securities Exchange (ASX) and trades under the code ‘QBE’.

Registered office

QBE Insurance Group Limited

Level 18, 388 George Street 

Sydney NSW 2000 Australia

Telephone: +61 2 9375 4444 

Facsimile: +61 2 9231 6104

Website: www.qbe.com

QBE website

GPO Box 2975 

Melbourne VIC 3001 Australia

452 Johnston Street 

Abbotsford VIC 3067 Australia

Telephone: 1300 723 487 (Australia) 

Telephone: +61 3 9415 4840 (International)

Website: www.computershare.com.au 

Email: qbe.queries@computershare.com.au

QBE’s website provides investors with information about QBE including annual reports, corporate governance statements, 

sustainability reports, half-yearly reports and announcements to the ASX. The website also offers regular QBE share price 

updates, a calendar of events, a history of QBE’s dividends and online access to your shareholding details via the share registry.

Shareholder information and enquiries

Enquiries and correspondence regarding shareholdings can be directed to QBE’s share registry:

Computershare Investor Services Pty Limited (Computershare)

For security purposes, you will need to quote your Securityholder Reference Number (SRN) or Holder Identification Number (HIN).

If you are broker (CHESS) sponsored, queries relating to incorrect registrations and changes to name and/or address can only 

be processed by your stockbroker. Please contact your stockbroker. Computershare cannot assist you with these changes.

Shareholding details online

Manage your shareholding online by visiting QBE’s share registry, Computershare. Log onto www.investorcentre.com to view your 

holding balance and dividend statements, to update your address (if you are registered with an SRN) or direct credit instructions, 

provide DRP or BSP instructions or change/add your tax file number (TFN)/Australian Business Number (ABN) details. 

You may also register to receive shareholder documentation electronically including your dividend statements, notices of meetings 

and proxy and annual reports.

Privacy legislation

Dividends

Chapter 2C of the Corporations Act 2001 requires information about you as a securityholder (including your name, address and 

details of the securities you hold) to be included in QBE’s share register. These details must continue to be included in the public 

register even if you cease to be a securityholder. A copy of the privacy policy is available on Computershare’s website.

QBE pays cash dividends to shareholders resident in Australia and New Zealand by direct credit. Shareholders in the United Kingdom 

and the United States also have the option to receive their cash dividends by direct credit, although it is not mandatory. The benefit 

to shareholders of the direct credit facility is access to cleared funds quickly and securely, reducing the risk of cheques being lost 

or stolen. Shareholders in other countries will receive cheque payments in Australian dollars if they have not elected to receive their 

payment by direct credit. Shareholders receive a dividend statement for tax records, either by post or by email depending on the 

selected communications option.

Eligible shareholders can participate in QBE’s DRP and BSP when the plans are active. The DRP enables shareholders to subscribe 

for additional shares. The BSP is a bonus share plan whereby the dividend entitlement is forgone for bonus shares in lieu of the 

dividend. In order to participate in either the DRP or BSP, shareholders must have a minimum shareholding of 100 shares and have 

a registered address in Australia or New Zealand.

forms are available from QBE’s website.

Participants may change their election to participate in the DRP and BSP at any time. DRP/BSP election cut-off dates and application 

153

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Tax file number (TFN), Australian Business Number (ABN) or exemption – Australian residents
You can confirm whether you have lodged your TFN, ABN or exemption by visiting Computershare’s Investor Centre. If you choose 
not to lodge these details, QBE is obliged to deduct tax at the highest marginal rate (plus the Medicare levy) from the unfranked 
portion of dividends paid. Australian shareholders living abroad should advise Computershare of their resident status. 

Conduit foreign income (CFI)
Shareholders will receive CFI credits in respect of the whole unfranked portion of QBE dividends. These credits exempt non-resident 
shareholders from Australian withholding tax.

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Unpresented cheques/unclaimed money
Under the Unclaimed Moneys Act 1950, unclaimed dividends six or more years old must be given to the Australian Capital Territory. 
It is very important that shareholders bank outstanding dividend cheques promptly and advise Computershare immediately of changes 
of address or bank account details.

Recent QBE dividend 

DATE PAID

31 March 2014
23 September 2014
13 April 2015
2 October 2015
14 April 2016
28 September 2016
13 April 2017
29 September 2017
20 April 2018
5 October 2018
18 April 2019
4 October 2019
9 April 2020
25 September 2020
24 September 2021
12 April 2022
23 September 2022
14 April 2023
22 September 2023

TYPE

Final
Interim
Final
Interim
Final
Interim
Final
Interim
Final
Interim
Final
Interim
Final
Interim
Interim
Final
Interim
Final
Interim

RECORD DATE

13 March 2014
29 August 2014
6 March 2015
28 August 2015
11 March 2016
26 August 2016
10 March 2017
25 August 2017
9 March 2018
24 August 2018
8 March 2019
23 August 2019
6 March 2020
21 August 2020
20 August 2021
8 March 2022
19 August 2022
7 March 2023
18 August 2023

AUSTRALIAN
CENTS
PER SHARE

FRANKING
%

12
15
22
20
30
21
33
22
4
22
28
25
27
4
11
19
9
30
14

100
100
100
100
100
50
50
30
30
30
60
60
30
10
10
10
10
10
10

Annual General Meeting
The Annual General Meeting of QBE Insurance Group Limited will be held at 10am on Friday, 10 May 2024. Details of the meeting, 
including information about how to vote, will be contained in our notice of meeting.

Annual Report mailing list
Amendments to the Corporations Act 2001 have removed the obligation for companies to mail an annual report to shareholders. 
To improve efficiency, save costs and reduce our impact on the environment by minimising unnecessary use of paper and printing 
resources, QBE’s Annual Report is published on our website at www.qbe.com.

If you wish to receive a hard copy of the Annual Report, please update your communication preferences by logging into your 
shareholding at www.investorcentre.com.

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154

Shareholder information  continued

Top 20 shareholders as at 31 January 2024

NAME

HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Pty Limited
Citicorp Nominees Pty Limited 
National Nominees Limited
BNP Paribas Nominees Pty Ltd (Agency Lending A/C)
BNP Paribas Noms Pty Ltd
Citicorp Nominees Pty Limited (Colonial First State Inv A/C)
HSBC Custody Nominees (Australia) Limited (NT-Comnwlth Super Corp A/C)
Argo Investments Limited
BNP Paribas Noms Pty Ltd Deutsche Bank TCA
HSBC Custody Nominees (Australia) Limited – A/C 2
BNPP Noms Pty Ltd HUB24 Custodial Serv Ltd
Netwealth Investments Limited (Wrap Services A/C)
BNP Paribas Noms (NZ) Ltd
Neweconomy Com Au Nominees Pty Limited (900 Account)
Mutual Trust Pty Ltd
HSBC Custody Nominees (Australia) Limited -GSCO ECA
BNP Paribas Noms Pty Ltd (Global Markets)
HSBC Custody Nominees (Australia) Limited (Euroclear Bank SA NV A/C)
Netwealth Investments Limited (Super Services A/C)

QBE substantial shareholders as at 31 January 2024

NUMBER 
OF SHARES

531,015,807
386,238,848
195,868,545
63,483,498
38,034,360
35,140,593
29,846,099
10,421,526
9,790,088
9,334,704
5,523,342
5,375,138
3,627,095
2,681,581
1,910,052
1,697,487
1,550,052
1,485,348
1,438,429
1,432,157
1,335,894,749

% OF
TOTAL

35.55
25.85
13.11
4.25
2.55
2.35
2.00
0.70
0.66
0.62
0.37
0.36
0.24
0.18
0.13
0.11
0.10
0.10
0.10
0.10
89.43

NAME 

AustralianSuper Pty Ltd
BlackRock Group (and its associated entities)²
State Street Corporation
Vanguard Group (The Vanguard Group, Inc and its controlled entities)

NUMBER OF
SHARES

124,439,018
109,707,892
90,387,067
80,289,148

% OF TOTAL 1

DATE OF NOTICE

8.39
7.23
6.09
6.06

1 August 2022
1 December 2023
4 October 2022
17 May 2019

1  Percentage of total at date of notice.
2  Totals include Fully Paid Ordinary shares and American Depository Receipts.

Distribution of shareholders and shareholdings as at 31 January 2024

SIZE OF HOLDING

1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total

NUMBER OF
SHAREHOLDERS

43,255
23,123
3,513
2,037
99
72,027

%

60.05
32.10
4.88
2.83
0.14
100.00

NUMBER
OF SHARES

15,813,220
52,052,564
24,608,011
43,021,232
1,358,420,283
1,493,915,310

%

1.06
3.48
1.65
2.88
90.93
100.00

Shareholdings of less than a  marketable parcel as at 31 January 2024

Holdings of 32 or fewer shares¹

SHAREHOLDERS

SHARES

NUMBER

3,407

% OF TOTAL

4.73

NUMBER

38,391

% OF TOTAL

0.0026

1  Determined based on less than marketable parcel of $500 based on a closing price of $15.85 on 31 January 2024. 

154

Shareholder information  continued

Financial calendar

YEAR

MONTH

DAY

ANNOUNCEMENT

2024

February

16

Results and dividend announcement for the year ended 31 December 2023

March

April

May

June

August

6

7

8

12 

10 

30

91

161

191

201

Shares begin trading ex-dividend

Record date for determining shareholders’ entitlement to the 2023 final dividend

DRP/BSP election close date – last day to nominate participation in the DRP or BSP

Payment date for the 2023 final dividend

2024 Annual General Meeting

1Q24 Performance update

Half year end

Results and dividend announcement for the half year ended 30 June 2024

Shares begin trading ex-dividend

Record date for determining shareholders’ entitlement to the 2024 interim dividend

DRP/BSP election close date – last day to nominate participation in the DRP or BSP

September 201

Payment date for the 2024 interim dividend

November

271

3Q24 Performance update

December

31

Year end

QBE substantial shareholders as at 31 January 2024

1  Dates shown may be subject to change.

Top 20 shareholders as at 31 January 2024

NAME

HSBC Custody Nominees (Australia) Limited

J P Morgan Nominees Australia Pty Limited

Citicorp Nominees Pty Limited 

National Nominees Limited

BNP Paribas Nominees Pty Ltd (Agency Lending A/C)

BNP Paribas Noms Pty Ltd

Citicorp Nominees Pty Limited (Colonial First State Inv A/C)

HSBC Custody Nominees (Australia) Limited (NT-Comnwlth Super Corp A/C)

Argo Investments Limited

BNP Paribas Noms Pty Ltd Deutsche Bank TCA

HSBC Custody Nominees (Australia) Limited – A/C 2

BNPP Noms Pty Ltd HUB24 Custodial Serv Ltd

Netwealth Investments Limited (Wrap Services A/C)

BNP Paribas Noms (NZ) Ltd

Neweconomy Com Au Nominees Pty Limited (900 Account)

Mutual Trust Pty Ltd

HSBC Custody Nominees (Australia) Limited -GSCO ECA

BNP Paribas Noms Pty Ltd (Global Markets)

HSBC Custody Nominees (Australia) Limited (Euroclear Bank SA NV A/C)

Netwealth Investments Limited (Super Services A/C)

NUMBER 

OF SHARES

531,015,807

386,238,848

195,868,545

63,483,498

38,034,360

35,140,593

29,846,099

10,421,526

9,790,088

9,334,704

5,523,342

5,375,138

3,627,095

2,681,581

1,910,052

1,697,487

1,550,052

1,485,348

1,438,429

1,432,157

% OF

TOTAL

35.55

25.85

13.11

4.25

2.55

2.35

2.00

0.70

0.66

0.62

0.37

0.36

0.24

0.18

0.13

0.11

0.10

0.10

0.10

0.10

1,335,894,749

89.43

NUMBER OF

SHARES

124,439,018

109,707,892

90,387,067

80,289,148

% OF TOTAL 1

DATE OF NOTICE

8.39

7.23

6.09

6.06

1 August 2022

1 December 2023

4 October 2022

17 May 2019

NAME 

AustralianSuper Pty Ltd

BlackRock Group (and its associated entities)²

State Street Corporation

Vanguard Group (The Vanguard Group, Inc and its controlled entities)

1  Percentage of total at date of notice.

2  Totals include Fully Paid Ordinary shares and American Depository Receipts.

Distribution of shareholders and shareholdings as at 31 January 2024

SIZE OF HOLDING

1 to 1,000

1,001 to 5,000

5,001 to 10,000

10,001 to 100,000

100,001 and over

Total

NUMBER OF

SHAREHOLDERS

43,255

23,123

3,513

2,037

99

72,027

NUMBER

OF SHARES

15,813,220

52,052,564

24,608,011

43,021,232

%

60.05

32.10

4.88

2.83

0.14

1,358,420,283

100.00

1,493,915,310

%

1.06

3.48

1.65

2.88

90.93

100.00

Shareholdings of less than a  marketable parcel as at 31 January 2024

Holdings of 32 or fewer shares¹

1  Determined based on less than marketable parcel of $500 based on a closing price of $15.85 on 31 January 2024. 

SHAREHOLDERS

SHARES

NUMBER

3,407

% OF TOTAL

4.73

NUMBER

38,391

% OF TOTAL

0.0026

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156

Glossary

AASB 1023

AASB 1023 General Insurance Contracts was the accounting standard that previously 
applied to accounting for insurance and reinsurance contracts. This standard was replaced 
by AASB 17 Insurance Contracts which became effective from 1 January 2023.

Accident year 

The year in which the event causing the claim occurs, regardless of when reported or paid.

Acquisition costs

Commission and other costs incurred in selling, underwriting and starting insurance contracts.

Admitted insurance

Insurance written by an insurance company that is admitted (or licensed) to do business in the 
state in the United States in which the policy was sold.

Agent 

One who negotiates contracts of insurance or reinsurance as an insurance company’s 
representative i.e. the agent’s primary responsibility is to the insurance company, not the 
insured party.

Aggregate reinsurance

Reinsurance cover that provides protection for an accumulation of claims arising from multiple 
events over a specified period of time.

APRA

Australian Prudential Regulation Authority, being the Group’s primary insurance regulator.

Attachment point

The amount of claims retained by the cedant in a reinsurance arrangement, after which 
reinsurance protection will apply.

Attributable expenses

Administrative, general and other expenses that directly relate to fulfilling insurance contracts.

Borrowings to total capital

The Group’s gearing ratio (also referred to as debt to total capital), calculated as borrowings 
expressed as a percentage of total capital. Total capital is shareholders’ equity plus Tier 1 
instruments classified as liabilities (which are excluded from borrowings for the purposes of this 
calculation), and subordinated debt.

Broker

Capacity

One who negotiates contracts of insurance or reinsurance on behalf of an insured party, receiving 
a commission from the insurance or reinsurance company for placement and other services 
rendered. In contrast with an agent, the broker’s primary responsibility is to the insured party, 
not the insurance company.

In relation to a Lloyd’s member, the maximum amount of insurance premium (gross of reinsurance 
but net of brokerage) which a member can accept. In relation to a syndicate, it is the aggregate 
of each member’s capacity allocated to that syndicate.

Captive

A licensed entity within the Group that provides reinsurance protection to other controlled entities.

Cash profit or loss

Profit or loss after tax attributable to QBE shareholders, adjusted for the post-tax effect 
of amortisation and impairment of intangibles and other non-cash items. 

Casualty insurance

Insurance that is primarily concerned with the claims resulting from injuries to third persons 
or their property (i.e. not the policyholder) and the resulting legal liability imposed on the insured. 
It includes, but is not limited to, general liability, employers’ liability, workers’ compensation, 
professional liability, public liability and motor liability insurance.

Catastrophe claims 

Total of all net claims resulting from catastrophe events. Referred to as catastrophe claims ratio 
when expressed as a percentage of net insurance revenue.

Catastrophe reinsurance

A reinsurance contract (often in the form of excess of loss reinsurance) that, subject to specified 
limits and retention, compensates the ceding insurer for financial losses related to an accumulation 
of claims resulting from a catastrophe event or series of events. 

156

Glossary

AASB 1023

AASB 1023 General Insurance Contracts was the accounting standard that previously 

applied to accounting for insurance and reinsurance contracts. This standard was replaced 

by AASB 17 Insurance Contracts which became effective from 1 January 2023.

Claim

The amount payable under a contract of insurance or reinsurance arising from a loss relating 
to an insured event.

Accident year 

The year in which the event causing the claim occurs, regardless of when reported or paid.

Claims incurred

The aggregate of all claims paid during an accounting period adjusted for the change in the 
claims provision in that accounting period.

Acquisition costs

Commission and other costs incurred in selling, underwriting and starting insurance contracts.

Admitted insurance

Insurance written by an insurance company that is admitted (or licensed) to do business in the 

state in the United States in which the policy was sold.

Agent 

One who negotiates contracts of insurance or reinsurance as an insurance company’s 

representative i.e. the agent’s primary responsibility is to the insurance company, not the 

insured party.

Aggregate reinsurance

Reinsurance cover that provides protection for an accumulation of claims arising from multiple 

events over a specified period of time.

APRA

Australian Prudential Regulation Authority, being the Group’s primary insurance regulator.

Combined operating ratio 
(COR)

The sum of the net claims ratio, commission ratio and expense ratio. A combined operating ratio 
below 100% indicates an underwriting profit. A combined operating ratio over 100% indicates 
an underwriting loss.

Commercial lines

Refers to insurance for businesses, professionals and commercial establishments.

Confidence level

A statistical measure of the level of confidence that the insurance contract liabilities will be 
sufficient to pay claims as and when they fall due. This was previously referred to as probability 
of adequacy under AASB 1023.

Contractual service margin 
(CSM)

A component of the asset or liability for remaining coverage of contracts measured under the 
general model, which represents profit that has not yet been recognised in profit or loss as it 
relates to future services to be provided over the remaining coverage of the insurance contracts.

Attachment point

The amount of claims retained by the cedant in a reinsurance arrangement, after which 

reinsurance protection will apply.

Credit spread  

The difference in yield between a bond and a reference yield (e.g. BBSW or a fixed sovereign 
bond yield).

Attributable expenses

Administrative, general and other expenses that directly relate to fulfilling insurance contracts.

Credit spread duration

The weighted average term of cash flows for a corporate bond. It is used to measure the price 
sensitivity of a corporate bond to changes in credit spreads.

Borrowings to total capital

The Group’s gearing ratio (also referred to as debt to total capital), calculated as borrowings 

expressed as a percentage of total capital. Total capital is shareholders’ equity plus Tier 1 

instruments classified as liabilities (which are excluded from borrowings for the purposes of this 

calculation), and subordinated debt.

Broker

Capacity

One who negotiates contracts of insurance or reinsurance on behalf of an insured party, receiving 

a commission from the insurance or reinsurance company for placement and other services 

rendered. In contrast with an agent, the broker’s primary responsibility is to the insured party, 

not the insurance company.

In relation to a Lloyd’s member, the maximum amount of insurance premium (gross of reinsurance 

but net of brokerage) which a member can accept. In relation to a syndicate, it is the aggregate 

of each member’s capacity allocated to that syndicate.

Captive

A licensed entity within the Group that provides reinsurance protection to other controlled entities.

Cash profit or loss

Profit or loss after tax attributable to QBE shareholders, adjusted for the post-tax effect 

of amortisation and impairment of intangibles and other non-cash items. 

Casualty insurance

Insurance that is primarily concerned with the claims resulting from injuries to third persons 

or their property (i.e. not the policyholder) and the resulting legal liability imposed on the insured. 

It includes, but is not limited to, general liability, employers’ liability, workers’ compensation, 

professional liability, public liability and motor liability insurance.

Ex-cat claims

Net claims excluding catastrophe claims and prior accident year claims development (including 
movements in risk adjustment related to prior accident years). Referred to as ex-cat claims ratio 
when expressed as a percentage of net insurance revenue.

Expenses and other income

The sum of attributable expenses (within insurance service expenses), other expenses and other 
income. Referred to as expense ratio when expressed as a percentage of net insurance revenue.

Facultative reinsurance  

The reinsurance of individual risks through a transaction between the reinsurer and the cedant 
(usually the primary insurer) involving a specified risk.

General insurance 

Generally used to describe non-life insurance business including property and casualty insurance. 

Gross written premium 
(GWP)

The total premium on insurance underwritten by an insurer or reinsurer during an accounting 
period, before deduction of reinsurance premium. This metric is used to derive insurance revenue 
under the premium allocation method, which is an allocation of total expected premium, derived 
based on gross written premium, to each period of coverage on the basis of the passage of time 
as described in note 2.1 of the Financial Report.

Illiquidity premium

A component within discount rates applied in the measurement of net insurance contract liabilities 
which reflects the liquidity characteristics of the insurance contracts.

Incurred but not reported 
(IBNR) 

Claims arising out of events that have occurred before the end of an accounting period but have 
not been reported to the insurer by that date. 

Catastrophe claims 

Total of all net claims resulting from catastrophe events. Referred to as catastrophe claims ratio 

when expressed as a percentage of net insurance revenue.

Insurance profit or loss

Catastrophe reinsurance

A reinsurance contract (often in the form of excess of loss reinsurance) that, subject to specified 

limits and retention, compensates the ceding insurer for financial losses related to an accumulation 

of claims resulting from a catastrophe event or series of events. 

The sum of the insurance operating result, net insurance finance income or expenses and 
net investment income or loss on assets backing policyholders’ funds. On a management 
basis, it also includes fixed income gains or losses from changes in risk-free rates attributable 
to shareholders’ funds. Referred to as insurance profit margin when expressed as a percentage 
of net insurance revenue.

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158

Glossary  continued

Insurance revenue

The proportion of gross written premium recognised as revenue in the current accounting period, 
reflecting insurance coverage provided during the period. This is the equivalent of gross earned 
premium under AASB 1023.

Lead/non‑lead underwriter

A lead underwriter operates in the subscription market and sets the terms and price of an insurance 
or reinsurance policy. The follower or non-lead underwriter is an underwriter of a syndicate 
or an insurance or reinsurance company that agrees to accept a proportion of a given risk 
on terms set by the lead underwriter.

Lenders’ mortgage insurance 
(LMI)

A policy that protects the lender (e.g. a bank) against non-payment or default on the part of the 
borrower on a residential property loan.

Letters of credit (LoC)

Written undertaking by a financial institution to provide funding if required.

Liability for incurred claims 
(LIC)

The liability established for claims and attributable expenses that have occurred but have not 
been paid. This replaces the outstanding claims liability under AASB 1023.

Liability for remaining coverage 
(LfRC)

The liability that represents insurance coverage to be provided by QBE after the balance date. 
This is the equivalent of unearned premium net of premium receivable, unclosed premium, 
deferred commission and deferred acquisition costs under AASB 1023. 

Lloyd’s

Long‑tail

Insurance and reinsurance market in London. It is not a company but is a society of individuals 
and corporate underwriting members.

Classes of insurance business involving coverage for risks where notice of a claim may not 
be received for many years and claims may be outstanding for more than one year before they 
are finally quantifiable and settled by the insurer.

Loss component

A component of the LfRC within the insurance contract liabilities that relates to losses recognised 
on onerous contracts.

Loss‑recovery component

A component of the asset for remaining coverage (AfRC) within the reinsurance contract assets 
that represents recoveries on reinsurance contracts held that correspond to losses recognised 
on onerous contracts.

Managing General Agent 
(MGA)

A wholesale insurance agent with the authority to accept placements from (and often to appoint) 
retail agents on behalf of an insurer. MGAs generally provide underwriting and administrative 
services such as policy issuance on behalf of the insurers they represent. Some may handle claims.

Maximum event retention 
(MER)

An estimate of the largest claim to which an insurer will be exposed (taking into account the 
probability of that loss event at a return period of one in 250 years) due to a concentration 
of risk exposures, after netting off any potential reinsurance recoveries and inward and outward 
reinstatement premiums.

Modified duration

The weighted average term of cash flows in a bond. It is used to measure the price sensitivity 
of a bond to changes in interest rates.

Multi‑peril crop insurance 
(MPCI) 

United States federally regulated crop insurance protecting against crop yield losses by allowing 
participating insurers to insure a certain percentage of historical crop production.

Net claims expense

The portion of insurance service expenses related to gross claims expenses, net of reinsurance 
income associated with reinsurance recoveries on claims. Management analysis of net claims 
expense includes the impacts of unwind of discount on claims reserves. Referred to as net claims 
ratio when expressed as a percentage of net insurance revenue. 

Net commission

The portion of insurance service expenses related to commission expenses, net of commission 
income from reinsurance contracts held that are recognised within reinsurance income. Referred 
to as net commission ratio when expressed as a percentage of net insurance revenue.

158

Glossary  continued

Lead/non‑lead underwriter

A lead underwriter operates in the subscription market and sets the terms and price of an insurance 

or reinsurance policy. The follower or non-lead underwriter is an underwriter of a syndicate 

or an insurance or reinsurance company that agrees to accept a proportion of a given risk 

on terms set by the lead underwriter.

Lenders’ mortgage insurance 

A policy that protects the lender (e.g. a bank) against non-payment or default on the part of the 

(LMI)

borrower on a residential property loan.

Letters of credit (LoC)

Written undertaking by a financial institution to provide funding if required.

Liability for incurred claims 

The liability established for claims and attributable expenses that have occurred but have not 

been paid. This replaces the outstanding claims liability under AASB 1023.

Liability for remaining coverage 

The liability that represents insurance coverage to be provided by QBE after the balance date. 

This is the equivalent of unearned premium net of premium receivable, unclosed premium, 

deferred commission and deferred acquisition costs under AASB 1023. 

Loss component

A component of the LfRC within the insurance contract liabilities that relates to losses recognised 

Loss‑recovery component

A component of the asset for remaining coverage (AfRC) within the reinsurance contract assets 

that represents recoveries on reinsurance contracts held that correspond to losses recognised 

on onerous contracts.

on onerous contracts.

Managing General Agent 

A wholesale insurance agent with the authority to accept placements from (and often to appoint) 

retail agents on behalf of an insurer. MGAs generally provide underwriting and administrative 

services such as policy issuance on behalf of the insurers they represent. Some may handle claims.

Maximum event retention 

An estimate of the largest claim to which an insurer will be exposed (taking into account the 

probability of that loss event at a return period of one in 250 years) due to a concentration 

of risk exposures, after netting off any potential reinsurance recoveries and inward and outward 

reinstatement premiums.

(LIC)

(LfRC)

Lloyd’s

Long‑tail

(MGA)

(MER)

Insurance revenue

The proportion of gross written premium recognised as revenue in the current accounting period, 

Net insurance revenue

reflecting insurance coverage provided during the period. This is the equivalent of gross earned 

premium under AASB 1023.

Insurance revenue net of reinsurance expenses. This is the equivalent of net earned premium 
under AASB 1023.

Net outstanding claims 

Claims reserves within the net LIC and unless otherwise stated, also include recoveries from 
reinsurance loss portfolio transfers.

Personal lines

Insurance for individuals and families, such as private motor vehicle and homeowners’ insurance.

Policyholders’ funds

The net insurance liabilities of the Group.

Premium 

Amount payable by the insured or reinsured in order to obtain insurance or reinsurance protection. 

Prescribed Capital Amount 
(PCA)

The sum of the capital charges for asset risk, asset concentration risk, insurance concentration 
risk and operational risk as required by APRA. The PCA must be disclosed at least annually. 

Prior accident year claims 
development

The portion of net claims expense attributable to prior accident years. Referred to as prior accident 
year claims development ratio when expressed as a percentage of net insurance revenue.

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Insurance and reinsurance market in London. It is not a company but is a society of individuals 

and corporate underwriting members.

Recoveries

The amount of claims recovered from reinsurance, third parties or salvage.

Classes of insurance business involving coverage for risks where notice of a claim may not 

be received for many years and claims may be outstanding for more than one year before they 

are finally quantifiable and settled by the insurer.

Reinsurance

An agreement to indemnify an insurer by a reinsurer in consideration of a premium with respect 
to agreed risks insured by the insurer. The entity accepting the risk is the reinsurer and is said 
to accept inward reinsurance (or referred to as a reinsurance contract issued). The entity ceding 
the risks is the cedant or ceding company and is said to place outward reinsurance (or referred 
to as a reinsurance contract held).

Prudential Capital Requirement 
(PCR)

The sum of the PCA plus any supervisory adjustment determined by APRA. The PCR may 
not be disclosed.

Reinsurance to close

A reinsurance agreement under which members of a syndicate, for a year of account to be closed, 
are reinsured by members who comprise that or another syndicate for a later year of account 
against all liabilities arising out of insurance business written by the reinsured syndicate.

Reinsurer

Retention

The insurer that assumes all or part of the insurance or reinsurance liability written by another 
insurer or reinsurer.

That amount of liability for which an insurer will remain responsible after it has completed 
its reinsurance arrangements.

Retrocession

Reinsurance of a reinsurer by another reinsurance company.

Return on equity (ROE)

Net profit after tax as a percentage of average shareholders’ equity.

Modified duration

The weighted average term of cash flows in a bond. It is used to measure the price sensitivity 

Risk adjustment

of a bond to changes in interest rates.

A component of insurance and reinsurance contract assets and liabilities that reflects the 
compensation required for bearing uncertainty about the amount and timing of cash flows that 
arises from non-financial risk. This replaces the risk margin under AASB 1023.

Multi‑peril crop insurance 

United States federally regulated crop insurance protecting against crop yield losses by allowing 

(MPCI) 

participating insurers to insure a certain percentage of historical crop production.

Short‑tail

Classes of insurance business involving coverage for risks where claims are usually known 
and settled within 12 months.

Net claims expense

The portion of insurance service expenses related to gross claims expenses, net of reinsurance 

income associated with reinsurance recoveries on claims. Management analysis of net claims 

expense includes the impacts of unwind of discount on claims reserves. Referred to as net claims 

ratio when expressed as a percentage of net insurance revenue. 

Surplus (or excess) 
lines insurers

Net commission

The portion of insurance service expenses related to commission expenses, net of commission 

income from reinsurance contracts held that are recognised within reinsurance income. Referred 

to as net commission ratio when expressed as a percentage of net insurance revenue.

In contrast to admitted insurers, every state in the United States also allows non-admitted 
(or surplus lines or excess lines) carriers to transact business where there is a special need that 
cannot or will not be met by admitted carriers. The rates and forms of non-admitted carriers 
generally are not regulated in that state, nor are the policies back-stopped by the state insolvency 
fund covering admitted insurance. Brokers must inform insurers if their insurance has been 
placed with a non-admitted insurer. 

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160

Glossary  continued

Syndicate

A member or group of members underwriting insurance business at Lloyd’s through the agency 
of a managing agent.

Total investment income or loss Gross investment income or loss including foreign exchange gains and losses and net 

of investment expenses.

Total shareholder return 
(TSR)

A measure of performance of a company’s shares over time. It includes share price appreciation 
and dividend performance.

Treaty reinsurance

Reinsurance of risks in which the reinsurer is obliged by agreement with the cedant to accept, 
within agreed limits, all risks to be underwritten by the cedant within specified classes of business 
in a given period of time.

Underwriting

The process of reviewing applications submitted for insurance or reinsurance coverage, deciding 
whether to provide all or part of the coverage requested and determining the applicable premium.

Underwriting year 

The year in which the contract of insurance commenced or was underwritten. 

Volume weighted average price 
(VWAP)

A measure of the average trading price during a period, adjusted for the volume of transactions. 
This is often used for determining the share price applicable to dividend and other 
share-related transactions.

160

Glossary  continued

Syndicate

A member or group of members underwriting insurance business at Lloyd’s through the agency 

Total investment income or loss Gross investment income or loss including foreign exchange gains and losses and net 

of a managing agent.

of investment expenses.

Total shareholder return 

A measure of performance of a company’s shares over time. It includes share price appreciation 

(TSR)

and dividend performance.

Treaty reinsurance

Reinsurance of risks in which the reinsurer is obliged by agreement with the cedant to accept, 

within agreed limits, all risks to be underwritten by the cedant within specified classes of business 

in a given period of time.

Underwriting

The process of reviewing applications submitted for insurance or reinsurance coverage, deciding 

whether to provide all or part of the coverage requested and determining the applicable premium.

Underwriting year 

The year in which the contract of insurance commenced or was underwritten. 

Volume weighted average price 

A measure of the average trading price during a period, adjusted for the volume of transactions. 

(VWAP)

This is often used for determining the share price applicable to dividend and other 

share-related transactions.

Design Communication and Production by ARMSTRONG 
Armstrong.Studio

QBE Insurance Group Limited

Level 18, 388 George Street, Sydney NSW 2000 Australia
Telephone:  +61 2 9375 4444
www.qbe.com