QBE Insurance : Pricing announcement

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

@

QBE

21 April 2017

The Manager

Market Announcements Office ASX Limited

Level 4

Exchange Centre 20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam

Pricing announcement in relation to QBE's USD300,000,000 Fixed Rate Senior Notes Due 2022, intended to be issued in accordance with QBE's Green Bond Framework

Please find attached an announcement for release to the market. Yours faithfully,

Peter Smiles

Deputy Company Secretary

Encl.

MARKET RELEASE

21 April 2017

PRICING ANNOUNCEMENT IN RELATION TO QBE'S USD300,000,000 FIXED RATE SENIOR NOTES DUE 2022, INTENDED TO BE ISSUED IN ACCORDANCE WITH QBE'S GREEN BOND FRAMEWORK

QBE announces today that is has successfully priced an issue of USD300,000,000 Fixed Rate Senior Notes due 2022 ("Notes"), to be issued under its USD4,000,000,000 Medium Term Note Programme.

The Notes are intended be issued in compliance with QBE's Green Bond Framework, which is available on QBE's website at www.group.qbe.com/corporate-governance/background-documents. Compliance with QBE's Green Bond Framework is neither a recommendation to buy, sell or hold securities nor a credit rating.

The Notes will include the following terms:

• a term of 5.5 years (maturing 21 October 2022);

• notes will bear 3.00 % per annum interest, payable semi-annually in arrear;

• expected rating of A- by Standard & Poor's; and,

• notes will be unsecured obligations that rank equally with all of our other present and future unsecured and unsubordinated obligations except obligations preferred by law.

Settlement and the issue of the Notes at an issue price of USD200,000 each is scheduled for 24 April 2017.

No offer is being made under this announcement and any person who is considering participating in the offer may only do if it is eligible under the terms of the Offering Circular for the Programme.

For further information, please contact:

Debt Relations QBE Insurance Group Limited

Paul Byrne ABN 28 008 485 014

Group Treasurer Level 27, 8 Chifley Square

Tel: [phone] SYDNEY NSW 2000

Cell: [phone] Australia

[e-mail] www.qbe.com

Media Enquiries

David Symons

Cell: [phone]

Email: [e-mail]

QBE Insurance Group Limited is listed on the Australian Securities Exchange and is recognised as one of the top 20 global insurance and reinsurance companies as measured by net earned premium and has operations in 37 countries.

DISCLAIMER

This market release does not constitute an offer to sell or a solicitation of an offer to buy, any securities in the United States. The securities referenced herein have not been and will not be registered under the U.S. Securities Act of 1933 (the "Securities Act") or the securities laws of any state or other jurisdiction of the United States absent registration except in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and any other applicable U.S. state securities laws.