QBE Insurance Group Limited announced the expiration and final results of its previously announced exchange offer, pursuant to which Eligible Holders of the outstanding $538,608,000 7.25% Fixed Rate Reset Guaranteed Exchangeable Subordinated Callable Notes due 2041 issued by QBE Capital Funding III Limited and guaranteed by QBE (CUSIP: G7306BAA2 and 74734PAA0; ISIN: US74734PAA03 and USG7306BAA29) were invited to exchange their Existing Notes for new U.S.$-denominated Fixed Rate Subordinated Notes due 2043 to be issued by QBE. According to D.F. King & Co. Inc. as of 11:59 p.m., New York City time, on November 16, 2016 (the "Expiration Time"), Eligible Holders validly tendered  $371,954,000 in aggregate principal amount of Existing Notes—equal to approximately 69.1% of the aggregate principal amount of the Existing Notes outstanding prior to commencement of the Exchange Offer. The settlement of the Exchange Offer is expected to occur on November 21, 2016 (the "Settlement Date"). Consequently, on the Settlement Date, QBE expects to issue $371,954,000 in aggregate principal amount of New Notes in exchange for an equivalent amount of Existing Notes and to pay in cash the applicable unpaid interest in respect of the tendered Existing Notes accrued to (but excluding) the Settlement Date. QBE also expects to issue on the Settlement Date a further $28,000,000 in aggregate principal amount of New Notes for additional capital. The New Notes issued in the Exchange Offer and the New Notes issued for additional capital will have the same terms and will constitute a single series of securities. After completion of the Exchange Offer, a total of approximately $166,654,000 in aggregate principal amount of the Existing Notes is expected to remain outstanding. As described in the  Exchange Offer Memorandum, in the future QBE may seek, directly or indirectly, to acquire the remaining Existing Notes through open market purchases, privately negotiated transactions, tender offers, exchange offers or otherwise, upon such terms and at such prices as it may determine, subject (where required) to the prior authorization of the Australian Prudential Regulation Authority. Such prices may be more or less than the prices to be paid to those who participated in the Exchange Offer and could be for cash or other consideration or otherwise on terms more or less favorable than those of the Exchange Offer. In addition, a total of £33,975,000 in aggregate principal amount remains outstanding of the Fixed Rate Reset Guaranteed Exchangeable Subordinated Callable Notes due 2041 issued by QBE Capital Funding IV Limited and guaranteed by QBE (the "Existing GBP Notes").