QBE European Operations plc
QBE European Operations plc
QBE European Operations plc
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<strong>QBE</strong> <strong>European</strong> <strong>Operations</strong> <strong>plc</strong> Annual report 2011 06<br />
Our business and strategy<br />
Our vision is to be recognised by brokers and<br />
clients as Europe’s leading specialist business<br />
insurer and reinsurer. We are confident in our<br />
ability to achieve this strategic ambition by<br />
continuing to focus on growth by acquisition,<br />
product and geographic diversification and strong<br />
underwriting discipline, all underpinned by our<br />
brand promise and foundational values and<br />
effective risk and capital management.<br />
Strong<br />
Empowers<br />
Foundational values<br />
Brand values<br />
Underwriting discipline<br />
Our vision<br />
Growth by acquisition<br />
geographic diversification<br />
Product and<br />
Specialist<br />
Delivers<br />
Entrepreneurial<br />
Growth by acquisition<br />
We have a strong record of successfully<br />
acquiring companies that complement and<br />
extend our existing business and increase<br />
our presence in Europe. In 2000, our acquisition<br />
of Limit Group enabled us to expand into the<br />
Lloyd’s market and, in the same year, we<br />
acquired Iron Trades. We have subsequently<br />
made eight further acquisitions and established<br />
offices in 11 <strong>European</strong> countries as well as in<br />
Singapore, Canada and Dubai. In 2010, our<br />
acquisition of Brussels-based Secura NV added<br />
immense value to our reinsurance capabilities<br />
and to our profile in Europe.<br />
<strong>QBE</strong> EO<br />
<strong>QBE</strong> EO is a division of <strong>QBE</strong> Insurance Group.<br />
Group’s vision<br />
To be the most successful global insurer and<br />
reinsurer in the eyes of our customers, our<br />
people, our shareholders and the community.<br />
Australia<br />
<strong>European</strong><br />
<strong>Operations</strong><br />
<strong>QBE</strong><br />
North<br />
America<br />
Product and geographic diversification<br />
We write a broad range of products across a wide<br />
geographic area. This reduces our overall risk<br />
exposure and enables us to achieve consistent<br />
returns, even during years of unusual losses. It also<br />
means that we are able to offer clients the choice<br />
of writing business on Lloyd’s or company paper.<br />
Underwriting discipline<br />
We aim for a 15% cross-cycle return on<br />
allocated capital on all business lines. It is<br />
our policy to discontinue lines that do not meet<br />
our target rate of return, rather than to chase<br />
top-line growth.<br />
• We will grow and deliver market-leading<br />
profitability in all our chosen businesses.<br />
• We will excel in the design and delivery<br />
of our products and services.<br />
• We will develop “can do” people who live<br />
our Essential Behaviours in everything<br />
they do.<br />
• We will increase the long-term wealth<br />
of our shareholders.<br />
Asia<br />
Pacific<br />
Latin<br />
America<br />
Brand promise<br />
We have a distinctive brand and strive for<br />
excellence, based on five promises:<br />
• Strong and growing market presence<br />
coupled with financial strength in<br />
underwriting (see page 26);<br />
• Empowerment through a collaborative<br />
“can do” spirit throughout the business and<br />
with our business partners (see case study:<br />
road safety on page 33);<br />
• Specialists in every business line and<br />
consistently across all disciplines (see<br />
case study: Cyber Response on page 10);<br />
• Entrepreneurial solutions to business risk<br />
(see case study: expanding our reinsurance<br />
business on page 18); and<br />
• Delivery of reliable and responsive solutions<br />
(see case study: <strong>QBE</strong> Rehabilitation wins<br />
Post magazine Rehab First Awards on<br />
page 23).<br />
Foundational values<br />
Our values, which underpin the unique <strong>QBE</strong><br />
culture, are demonstrated through <strong>QBE</strong>’s nine<br />
Essential Behaviours, known by the acronym<br />
OPENUP<strong>QBE</strong>. These behaviours and attitudes,<br />
as applied by <strong>QBE</strong> people on a day-to-day<br />
basis, are the common threads binding<br />
together the diversity of our worldwide<br />
organisation. We aim to employ, retain and<br />
develop the best available people in the<br />
industry. Our OPENUP<strong>QBE</strong> programme,<br />
which is actively promoted to staff across<br />
<strong>QBE</strong>, underpins this strategy (see page 25).