QBE Insurance : response to UK referendum outcome

FINAL DRAFT - 16th June Announcement for ASX SGX (232573.DOCX;1)

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

27 June 2016

The Manager

Market Announcements Office ASX Limited

Level 4

Exchange Centre 20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam,

QBE response to United Kingdom referendum outcome Please find attached an announcement for release to the market. Yours faithfully,

Carolyn Scobie

Company Secretary

Encl.

@

QBE MARKET RELEASE

27 June 2016

QBE RESPONSE TO UNITED KINGDOM REFERENDUM OUTCOME

QBE Insurance Group Limited (QBE) notes that the United Kingdom (UK) referendum regarding ongoing membership of the European Union (EU) has seen a majority of votes cast in favour of leaving the EU.

The referendum outcome may require a revised approach in relation to approximately GBP500 million of insurance and reinsurance premium that QBE currently sources from EU member countries that is written via branches of UK regulated entities under current

EU passporting rules.

Should EU passporting rules not be preserved, QBE will be required to renew this business into newly established licensed EU entities.

The exit transition timetable is expected to take a minimum of two years. This period provides ample time for any requisite administrative transition and to ensure our service commitments to QBE's European customers are uninterrupted. Thus our ability to source business from EU member countries remains unchanged.

Accordingly, QBE does not anticipate any material impact on our day to day insurance operations as a result of the UK's decision to leave the EU.

- ENDS -

For further information, please contact:

Investor Relations Group Head of Investor Relations Tony Jackson Tel: +61 (2) 9375 4364 investor.relations@qbe.com	QBE Insurance Group Limited ABN 28 008 485 014 8 Chifley Square SYDNEY NSW 2000 Australia www.qbe.com
Media Enquiries David Symons Cell: +61 (0) 410 559 184 Email: david.symons@qbe.com

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 37 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.