QBE Insurance Group Limited ABN 28 008 485 014

Level 27, 8 Chifley Square, SYDNEY NSW 2000 Australia

GPO Box 82, Sydney NSW 2001

telephone + 612 9375 4444 • facsimile + 612 9231 6104

www.qbe.com
11 August 2015
The Manager
Markets Announcements Office
ASX Limited
Level 4
Exchange Centre
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam

QBE announces completion of sale of Argentine Workers' Compensation

Business


Please find attached an announcement for release to the market. Yours faithfully
Peter Horton

Company Secretary

Attachment

MARKET RELEASE

11 August 2015

QBE ANNOUNCES COMPLETION OF SALE OF ARGENTINE WORKERS' COMPENSATION BUSINESS

QBE today announced completion of the sale of the Group's workers' compensation business in Argentina to La Caja Aseguradora de Riesgos de Trabajo ART SA, a company wholly owned by the Werthein Group, which has had a significant presence in the Argentine insurance market over the last two decades.
The effective sale date is 10 August 2015.
Total proceeds after settlement of a pre-disposal dividend are around $55M, representing approximately 1.8x AIFRS book value. Profit on sale before tax is approximately $21M.
As required by Australian Accounting Standards (AASB 121), QBE will recognise a foreign currency translation reserve (FCTR) reclassification charge of $65M out of equity and into the income statement. This is a non-cash item and will not impact shareholders' funds. The FCTR recycling charge, together with funding and transaction costs and taxes, will give rise to an overall loss on sale of around $73M.
The sale of the Argentine workers' compensation business will positively impact the Group's APRA PCA multiple and S&P capital position due to the removal of significant risk charges and approximately $19M of intangibles. The FCTR recycling charge does not impact QBE's capital base.
While the asset was classified as "held for sale" in QBE's 2014 financial statements and the results of the business are expressly excluded from 2015 guidance, QBE's 2015 interim result will include a full six months of results from the Argentine workers' compensation business.
QBE's interim 2015 result is due to be announced on 18 August.
For further information, please contact:

Investor Relations

Group Head of Investor Relations

Tony Jackson

Tel: +61 2 9375 4364

investor.relations@qbe.com

Media Enquiries

David Symons

Tel: +61 (2) 8306 4244

Cell: +61 (0) 410 559 184

Email: david@catocounsel.com.au

QBE Insurance Group Limited

ABN 28 008 485 014

Level 27, 8 Chifley Square

SYDNEY NSW 2000

Australia

www.qbe.com

MARKET RELEASE

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QBE Insurance Group Limited is listed on the Australian Securities Exchange, is one of the top 20 global insurance and reinsurance companies as measured by net earned premium and has operations in 38 countries.

IMPORTANT DISCLAIMER:

Any forward-looking statements assume large individual risk and catastrophe claims do not exceed the significant allowance in our business plans; no overall reduction in premium rates; no significant fall in equity markets and interest rates; no major movement in budgeted foreign exchange rates; no material change

to key inflation and economic growth forecasts; recoveries from our strong reinsurance panel; and no substantial change in regulation. Should one or more of

these assumptions prove incorrect, actual results may differ materially from the expectations described in this market release.

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