Grasp of detail was chief's policy

Outgoing QBE boss is known to always keep details of the insurer's top 200 risks close by.

By InvestSMART · 29 Feb 2012

By InvestSMART ·
29 Feb 2012

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Outgoing QBE boss is known to always keep details of the insurer's top 200 risks close by.

OUTGOING QBE boss Frank O'Halloran is known to always keep details of the insurer's top 200 risks close by - whether in his desk drawer or his battered briefcase when on the road.

This was part of his obsession with the detail in running the global insurer over the past 14 years.

From the New South Wales border town of Albury, O'Halloran's unpolished delivery in investor briefings often concealed a phenomenal grasp of numbers and impressive knowledge of the company that now spans more than 50 countries.

The 65-year-old could jump from discussing relative risks in the Colombian liability market, to car insurance premium rises in Poland to the annual cyclone count in the US midwest.

And with more than 125 acquisitions to his name, O'Halloran - personally involved in all deals - built his reputation on not overpaying.

The biggest irritant for him remained not being able to take a bigger slice of the Australian market, which makes up just a quarter of QBE's insurance book. For years he had his eyes on Insurance Australia Group. That led to an $8.7 billion share and cash offer in 2008, but IAG preferred to go its own way.

For much of the 2000s it appeared O'Halloran had not put a foot wrong, particularly through a string of counter-cyclical deals. But the shine had started wearing off in recent years after a string of disappointing results, due in part to a relentless expansion into the depressed US market.

More recently there were persistent questions about QBE's need to top up capital. And following a brutal profit warning in January, it seemed the announcement of O'Halloran's retirement was a matter of time.

Colleagues are quick to point out how much he loves the role and the business itself. ''Frank's heart is in QBE he lives and breathes the place,'' one said yesterday.

For his part, O'Halloran said there were no plans to ease the pace until he stepped down later this year. ''I will still be in the office at six in the morning and leaving at eight at night until I deliver that last result on August 17,'' he said.

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Frequently Asked Questions about this Article…

Who is Frank O'Halloran and what was his role at QBE?

Frank O'Halloran is the outgoing boss of QBE Insurance Group who ran the global insurer for 14 years. Based in Australia originally from Albury, he built QBE into a business spanning more than 50 countries and became known for his deep knowledge of the company and hands-on leadership.

How did Frank O'Halloran approach risk management at QBE?

O'Halloran was obsessive about detail and risk: he kept the insurer's top 200 risks close at hand, often in his desk drawer or briefcase. That hands-on focus on risk helped shape QBE's global underwriting and reporting approach.

How active was QBE in acquisitions under O'Halloran and what was his deal strategy?

Under O'Halloran QBE completed more than 125 acquisitions, with him personally involved in every deal. He built a reputation for doing counter-cyclical deals and for being careful not to overpay.

Why did QBE deliver disappointing results in recent years?

The article attributes a string of disappointing results in part to QBE's relentless expansion into the depressed US market. There were also persistent questions about the need to top up capital and a brutal profit warning in January that underlined performance pressures.

What happened with QBE's 2008 takeover offer for Insurance Australia Group (IAG)?

In 2008 O'Halloran made an $8.7 billion share-and-cash offer for Insurance Australia Group (IAG), but IAG chose to remain independent and preferred to go its own way.

How significant is the Australian market to QBE and what bothered O'Halloran about it?

Australia made up only about a quarter of QBE's insurance book. O'Halloran was frustrated he couldn't take a bigger slice of the Australian market, which he described as his biggest irritant.

When did O'Halloran plan to retire and what did he say about his work pace before stepping down?

O'Halloran announced he would step down later in the year and planned to keep working at full pace until he left. He said he'd still be in the office at six in the morning and leaving at eight at night until he delivered the final result on August 17.

What did colleagues and the article say about O'Halloran's commitment to QBE?

Colleagues emphasized O'Halloran's passion for the business, saying 'Frank's heart is in QBE — he lives and breathes the place.' The article notes he loved the role and had no plans to ease up until retirement.