Rallying???, page-3

QBE INSURANCE GROUP Last trade $6.650 at 15:07 18/6/2002






Sydney - Tuesday - June 18: (RWE) - QBE Insurance Group Ltd
today announced it remained on track to achieve its 2002 target of an
insurance profit of 6 per cent to 6.5 per cent of net earned premium of
around $5.5 billion.
The insurer said it was making announcement "in light of the
weakness in QBE's share price, which would appear to be as a result of
uninformed comments in the market".
QBE said its overall premium rate increases around the world
were higher than the average 20 per cent rate increases previously
stated.
The company's claims experience in the first five-and-a-half
months of 2002 was lower than anticipated.
Commission and expenses ratios were still on budget.
QBE's net loss from the September 11 attacks (included in the
2001 result) remained unchanged at $252 million after tax.
Directors remained confident that recoveries from reinsurers
would be received.
QBE was not expecting the impact of the strengthening Australian
dollar to have a material effect on the 2002 results.
Chief executive Mr Frank O'Halloran said: "I am very pleased by
the results to date from all five insurance divisions, which are
performing strongly, including Lloyd's.
"While volatile bond and equity markets may affect the movement
in unrealised gains at balance date, this is not likely to affect
insurance profit performance."
QBE rose 7c to $6.62 after trading as low as $6.05 today.
ENDS