QBE to acquire reinsurance company Secura NV fr...

Regulated information* - 5 July 2010 (08.05 a.m. CEST)


Capital release[1] of 139 million EUR for KBC Group

KBC Group and QBE Insurance Group reached an agreement on the sale of
reinsurance company Secura NV for a consideration of 267 million EUR plus gains
to be realised on the investment portfolio and earnings for the year 2010 until
completion. For KBC, the transaction will result in a capital release of 139
million EUR, based on an estimate of the gains and profit for the year.



  * The Australian (re)insurance group QBE Insurance Group is acquiring Secura
    NV, a subsidiary of KBC Insurance, offering growth opportunities to Secura
    and continuity for its customers and staff.



  * QBE is one of the top 25 insurance and reinsurance groups in the world, with
    offices in 47 countries and over 13 500 employees. Listed on the Australian
    Stock Exchange, it has a market capitalisation of 18 billion AUD and is
    rated 'A+' by Standard and Poor's. Its reinsurance activities are highly
    complementary to those of Secura providing a significant geographical
    expansion for its existing European business and attractive growth
    opportunities leveraging the mutual expertise of the two businesses.



  * As part of its updated strategy, KBC group will focus on its core
    bancassurance expertise in its home markets (Belgium and Central and Eastern
    Europe) while further reducing the risk profile of the overall group. To
    safeguard growth perspectives for Secura, it was decided, with support from
    Secura's management, to look for a new strategic partner for the business.



  * Secura NV is a specialised European non-life and life reinsurer with a
    diversified and Europe-focused customer portfolio. The company is located in
    Brussels and employs 86 staff.



  * Secura operates on a stand-alone basis within the KBC group and has
    consistently returned excellent operating results. At the end of 2009,
    Secura contributed 28.6 million EUR to KBC Group's consolidated net profit.
    The transaction will immediately release an estimated 139 million EUR in
    capital for KBC and will have a positive impact of 10 basis points on KBC's
    tier-1 ratio.



  * As a core entity of QBE, Secura will continue to develop its activities
    based on QBE's A+ rating and Secura's technical expertise. It is QBE's
    intention that Secura's brand, business model, management and staff will be
    maintained, while its activities will remain centralised in Brussels.



  * The transaction is expected to close in the third quarter and is subject to
    relevant regulatory approvals.



Johan Thijs, CEO of KBC group's Belgium Business Unit, commented on the
agreement: 'Secura is a strong brand in the reinsurance sector. We are happy to
have found a partner for Secura who will appreciate and further develop the
qualities and potential of the company, and can continue to provide it with the
necessary resources for further expansion in the reinsurance sector'.



Jan Leflot, CEO of Secura NV, confirms the positive effect of the transaction.
"For many years, Secura has operated as an independent reinsurer within the KBC
group. Today, the agreement with QBE will give us the possibility to develop our
activities further and explore new markets, building on the strong and unique
market position we have built up over the years. Together with QBE's other
European entities it will be our ambition to reach a leading reinsurance
position.'



Frank O'Halloran, CEO QBE: "We have known Secura for many years.  They have a
unique client base, a long track record of profitability and an excellent team
of experienced insurance professionals.  Together, the combined expertise and
strength of QBE and Secura's reinsurance offering present a significant platform
for growth and development."



New strong shareholder



On 18 November, 2009, KBC announced its updated strategy of predominantly
focusing on its core bancassurance expertise for retail customers, small and
medium sized enterprises and midcaps in its home markets (in Belgium and Central
and Eastern Europe) and further reducing the risk profile of the group. Secura
NV is a respected reinsurance company with an excellent reputation in the
sector, a broadly diversified and profitable portfolio, and a distinct presence
on the European market for co-operative insurers. Since reinsurance activities
are not considered to be a core activity in KBC's renewed strategy, it was
decided to look for a new strategic partner for Secura NV.



QBE Insurance Group is Standard & Poor's 'A+' rated and is one of the world's
leading international insurers and reinsurers, headquartered in Sydney,
Australia. They operate out of 47 countries across the globe, with a presence in
all key insurance markets, and are lead underwriters within their chosen
markets, setting rates and conditions.



QBE's European Operations, which account for 35% of QBE Group turnover, is a
leading specialist in London market and European commercial lines business.  It
provides a wide range of insurance cover, including property, motor, liability
and professional indemnity across a broad range of business types

and sizes.


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[1] Estimated capital release

* This news item contains information that is subject to the transparency
regulations for listed companies.



[HUG#1429377]





    secura_QBE_press release_ENG.pdf: 

http://hugin.info/133947/R/1429377/376505.pdf



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