Insurance Case Studies

Assisting QBE Insurance Group with Complex Capital Raisings

PwC is the external auditor of Australian-based global general insurance company, QBE Insurance Group. Over the past 12 months, QBE has raised almost A$2 billion in debt and hybrid securities through innovative structures, enabling it to make a number of major acquisitions and to fund it regulatory capital requirements in a more cost-efficient manner.

PwC's longstanding relationship with QBE and the firm's deep industry expertise and knowledge of QBE's operating structure assisted with these transactions. The firm provided accounting advice in the IFRS context, dealing with the implications of these complex structures. PwC made the expertise of its capital market specialists available to assist on the project and provided comfort letters on financial information including in the offering memoranda.

PwC recognised the time-sensitive nature of this work and worked hard with the various parties making sure that all-important capital-rising timeframes were met. PwC's advice was always current and strategic, focused on delivery and bringing value to the client through the firm's global network of experts.

The fundraising was completed in three transactions over a 10-week period, with QBE able to take advantage of the quick turnaround in documentation, leveraging off the 30 June 2004 financial statements and resulting in the achievement of very favourable pricing terms. PwC was instrumental in helping QBE achieve this outcome in a tight timeframe.

Neil Drabsch, CFO - QBE Insurance Group