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INTERVIEW: Frank O’Halloran – QBE’s Mr 15%

30 July 2010

Frank O’Halloran has a tough return target for Australian insurance and reinsurance group QBE and he is not budging, despite stagnant pricing, falling investment returns and first-half catastrophes.

Read more: frank o'halloran qbe steven burns secura solvency ii International Insurance Society deepwater horizon

*Corrects previous version that incorrectly stated that QBE had pulled completely out of UK motor. QBE no longer writes UK personal lines motor but will, however, continue to grow and develop its commercial motor fleet portfolio, which is one of the largest accounts in the UK.


The difference between Australian firm QBE Insurance Group and its competitors is simple, says its chief executive officer Frank O’Halloran – it sets its sights higher. Anything under a 15% return on equity (ROE) is not acceptable. No exceptions. End of story.

“The main difference is that we have return on equity benchmarks that are much higher than our competitors,” O’Halloran explains. “Our approach is that an employee does not get a bonus until a minimum 15% return on equity target is achieved and that is on each product, each business and for the group as a whole.”

He says the industry would...


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