The QBE Insurance Group Limited (ASX:QBE) of today began life as The North Queensland Insurance Company (NQIC), founded by Scotsmen Sir James Burns and Robert Philp in 1886. The company commenced writing marine insurance in Townsville to underwrite the risks of the parent shipping business, Burns Philp and Co. Sydney-siders will recognise the 110 year old Burns Philp and Co building on Bridge Street. By 1890, NQIC had established agencies in over 36 countries on the back of the parent company’s trading subsidiaries.
In 1959, NQIC completed its first major acquisition by purchasing a 40% holding in Equitable Probate and General Insurance Company. By 1973, NQIC had merged with Bankers and Traders Insurance Company, who also held a 40% stake in Equitable Probate. By adopting the first letter from each of the three entities, QBE Limited was formed.
QBE Limited was later listed on the ASX in 1973. For over 125 years QBE has provided insurance across a diverse range of commercial lines.
Insurance
Insurance businesses undertake two functions;
- Underwriting; and
- Investing
Underwriting
The underwriting operations sell insurance contracts to customers, attempting to closely match the total premiums received to the eventual claims paid out to policyholders. To do so, insurers must accurately assess the risk of each insured event and price the insurance contract appropriately. Insurers aim to write many contracts across similarly defined risk pools to substitute actual loss to average loss across the group.
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