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
20 January 2015
The Manager
Market Announcements Office
ASX Limited
Level 4
Exchange Centre
20 Bridge Street, SYDNEY NSW 2000

QBE ANNOUNCES SALE OF US AGENCY BUSINESSES Please find attached an announcement for release to the market. Yours faithfully


Peter Horton

Company Secretary MARKET RELEASE

20 January 2015

QBE ANNOUNCES SALE OF US AGENCY BUSINESSES

QBE today announces that it has entered into an agreement with Alliant Insurance Services, Inc for the sale of QBE North America's US agency businesses, which include Community Association Underwriters ("CAU"), Deep South and SIU.
The total potential sale consideration is around US$300 million including an up-front cash payment of US$217 million with the remaining cash to be paid by way of a performance- based earn-out agreement over the next five years. The total potential sale consideration represents an EBITDA multiple of around 12x.
QBE Group CEO John Neal said "We are pleased to announce the progression of another important step of our capital plan in the sale of the US agency businesses at a price we consider to be attractive for our shareholders."
"An important element of the sale is the long-term agreement that we have entered into to retain the underwriting business provided by the agencies. We look forward to continuing to grow our program business and to working with Alliant and CAU, Deep South and SIU."
The sale is expected to close in early February 2015. 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

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

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