Business Description:
QBE Insurance Group (QBE) is a provider of general insurance and reinsurance services in Australia, the Pacific, Asia, the Americas and Europe.

Strategy Analysis:
QBE's strategic objective is to remain a highly respected and successful general insurance and reinsurance group by earning underwriting surpluses in each insurance division and country combined with above benchmark investment returns. The objectives of management are to grow shareholder wealth over the long-term while maintaining a sound solvency position and a low risk profile; improve customer satisfaction and retention; motivate employees and maintain a high degree of integrity. Extensive risk management is in place to protect all stakeholders. QBE's growth strategy is based on organic growth from existing diversified operations supplemented by astute value-adding acquisitions. QBE has made over 135 acquisitions over the past 25 years and currently operates in 49 countries. QBE Insurance Group reported NPAT up 53% to US$673m for the half-year ended 30 June 2011. This result was due to a significant improvement in investment income due to the achievement of higher investment yields on fixed interest securities and net gains on equity investments. Revenues from ordinary activities were US$9.07bn, up 34% from the same period last year. Diluted EPS was 59.9 US cents compared to 42.2 US cents last year. Net operating cash flow was US$1.12bn compared to US$698m last year. The interim dividend declared was 62 AU cents, in line with 62 AU cents last year. Looking ahead to the second half of 2011, premium income will benefit from the full year development of the US crop insurance portfolios, the acquisitions of Balboa and Renaissance Re in the US and CUNA Mutual in Australia.