QBE Insurance : Market Release regarding 2015 Remuneration Report

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

26 April 2016

The Manager

Market Announcements Office ASX Limited

Level 4

Exchange Centre 20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam

QBE Insurance Group Limited has a practice of disclosing its STI targets for the coming year in the Annual Report. In accordance with this practice, the Remuneration Report released on 23 February 2016 contained information regarding "Group statutory ROE targets for 2016" on page 58 of the Annual Report.

Subsequent to publication of the Annual Report, the Remuneration Committee has had the opportunity to consider feedback from investors in relation to the company's STI targets. After considering this feedback , the Remuneration Committee has resolved to make one change to 2016 targets - the threshold level for the Group ROE target has been lifted from 5.0% to 6.0%. As a result, the relevant passage of the Remuneration Report should now read (with the amended figure in bold):

Group statutory ROE targets for 2016

Each year we set Group ROE targets for ST/ and LTl purposes that reflect the Group's business plan and the operating environment. We anticipate that both global pricing and investment markets will remain challenging this year and accordingly our focus will be on maintaining underwriting discipline and exercising strict cost control, while continuing to invest in our strategic growth and operational initiatives . The Group ROE target range for 2016 ST/ is 6.0% to 12.0%, with on­ target performance set at 8.5%, and for the 2016 LTl grant (being the three-year average return) the target range is 7.0% to 10.6%.

Carolyn Scobie Company Secretary