QBE European Operations plc

More documents

Recommendations

Info

QBE European Operations plc Annual report 2011 06 Our business and strategy Our vision is to be recognised by brokers and clients as Europe’s leading specialist business insurer and reinsurer. We are confident in our ability to achieve this strategic ambition by continuing to focus on growth by acquisition, product and geographic diversification and strong underwriting discipline, all underpinned by our brand promise and foundational values and effective risk and capital management. Strong Empowers Foundational values Brand values Underwriting discipline Our vision Growth by acquisition geographic diversification Product and Specialist Delivers Entrepreneurial Growth by acquisition We have a strong record of successfully acquiring companies that complement and extend our existing business and increase our presence in Europe. In 2000, our acquisition of Limit Group enabled us to expand into the Lloyd’s market and, in the same year, we acquired Iron Trades. We have subsequently made eight further acquisitions and established offices in 11 European countries as well as in Singapore, Canada and Dubai. In 2010, our acquisition of Brussels-based Secura NV added immense value to our reinsurance capabilities and to our profile in Europe. QBE EO QBE EO is a division of QBE Insurance Group. Group’s vision To be the most successful global insurer and reinsurer in the eyes of our customers, our people, our shareholders and the community. Australia European Operations QBE North America Product and geographic diversification We write a broad range of products across a wide geographic area. This reduces our overall risk exposure and enables us to achieve consistent returns, even during years of unusual losses. It also means that we are able to offer clients the choice of writing business on Lloyd’s or company paper. Underwriting discipline We aim for a 15% cross-cycle return on allocated capital on all business lines. It is our policy to discontinue lines that do not meet our target rate of return, rather than to chase top-line growth. • We will grow and deliver market-leading profitability in all our chosen businesses. • We will excel in the design and delivery of our products and services. • We will develop “can do” people who live our Essential Behaviours in everything they do. • We will increase the long-term wealth of our shareholders. Asia Pacific Latin America Brand promise We have a distinctive brand and strive for excellence, based on five promises: • Strong and growing market presence coupled with financial strength in underwriting (see page 26); • Empowerment through a collaborative “can do” spirit throughout the business and with our business partners (see case study: road safety on page 33); • Specialists in every business line and consistently across all disciplines (see case study: Cyber Response on page 10); • Entrepreneurial solutions to business risk (see case study: expanding our reinsurance business on page 18); and • Delivery of reliable and responsive solutions (see case study: QBE Rehabilitation wins Post magazine Rehab First Awards on page 23). Foundational values Our values, which underpin the unique QBE culture, are demonstrated through QBE’s nine Essential Behaviours, known by the acronym OPENUPQBE. These behaviours and attitudes, as applied by QBE people on a day-to-day basis, are the common threads binding together the diversity of our worldwide organisation. We aim to employ, retain and develop the best available people in the industry. Our OPENUPQBE programme, which is actively promoted to staff across QBE, underpins this strategy (see page 25).
QBE European Operations plc Annual report 2011 07 We measure our progress through specific performance goals that are fundamental to the delivery of our vision. Priorities Targets Strategic overview Underwriting discipline We have annually agreed targets, set by QBE during the planning process and detailed business plans that define profit targets for each portfolio. The board regularly monitors our targets against plan and empowers our underwriters to deliver within a framework of plans and authorities. Performance goals • Target a return on allocated capital in excess of 15% cross-cycle and a combined operating ratio below 100% • Strong underwriting cycle management Actual • In 2011 we achieved a return on allocated capital of 16.3% against a target of 15% with a combined operating ratio of 96.6% Growth by acquisition Our acquisition strategy is agreed annually within the QBE framework. Our board continually reviews acquisition opportunities, as and when they appear, against strict acquisition criteria. The board reviews the contribution of acquisitions to top-line growth against targets agreed with the Group board to ensure that they positively contribute to earnings. Performance goals • Deliver acquisitions that add value, subject to our disciplined approach and acquisition criteria • Continue to integrate the acquired business of Secura NV Actual • In 2011 we continued to monitor potential acquisitions but none of those reviewed met our strict criteria • In April 2012 we acquired the renewal rights for Brit Insurance UK regional operations • Secura NV acquisition is meeting expectations and our agreed targets have been met Product and geographic diversification Our underwriting managers are highly involved in strategy and management. They are tasked with developing organic growth strategies and maximising distribution opportunities, including Lloyd’s and QBE global networks. Performance goals • Develop new products, business classes and/or teams and distribution opportunities through Lloyd’s and the QBE global network • Improve on client penetration across divisions through cross-portfolio initiatives • Increase collaboration with other QBE divisions Actual • We appointed a Managing Director for European markets • In 2011 we maintained our successful brand development through our rugby sponsorship To employ the best people in all disciplines We have a board-approved HR strategy (see page 24 for further details). Systems exist to identify issues early and we track and resolve any concerns arising from our employee surveys. People who leave us are debriefed to help us to improve our policies. Performance goals • Develop excellent transactional process in core HR services • Develop and implement people-focused solutions with the aim of improving our employees’ capabilities • Ensure that QBE EO is recognised as an employer of choice by existing and potential employees, the market and its business partners Actual • Employee engagement, flexible working and diversity initiatives launched • Strong progress in talent management and initiatives
Page 1 and 2: QBE European Operations plc Annual
Page 7: QBE European Operations plc Annual
Page 59 and 60:
QBE European Operations plc Annual
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
show all

QBE European Operations plc

Create successful ePaper yourself

Delete template?

Save as template?