QBE 125 Year Anniversary (1886-2011)

The Origins of QBE (1883-1907)
James Burns and Robert Philp form the North Queensland Insurance Company Ltd (NQI). They were already business partners in the shipping company Burns Philp & Co.  

• NQI is registered in Sydney with an office in the busy shipping port of Townsville.
• The issued capital of the new company was £100,000, shares of £1 each called up to 2/6d per share giving a paid up capital of £12,500 to finance the new company.
• The company had a single employee, Mr Charles Danvers who later gained the peer-voted honour of becoming the first chairman of Sydney Marine Underwriters and Salvage Association.
• Early letters showed the idea for North Queensland Insurance was conceived as early as 1883, when James Burns wrote to Robert Philp, "What is your opinion of starting an insurance firm and taking say half or a third of our own marine risks on same terms as other position is covered?"
• Within the first year of operation 1,781 policies had been issued, and agencies had been established in Brisbane, Townsville, Cairns, Thursday Island, Normanton, Rockhampton, Bowen, Hobart, London, Newcastle, Melbourne, Adelaide, Port Darwin & several Queensland ports.
• In 1889, NQI endured an industry-wide economic slump. The market shrunk from 33 different fire and marine insurers, down to 19, with many being sold to UK companies. North Queensland Insurance instead employed a strategy of diversification, expanding from marine risks into the fire insurance market.
• A similar strategy was again adopted in 1904 when NQI expanded into crop insurance. A suburban inspector & canvasser was hired for £225 per annum with the addition of a £25 horse & buggy allowance.
• In 1906 this philosophy allowed for further growth when the subsidiary, North Queensland Accident Insurance Company, was created to allow expansion into accident insurance.
• By 1907 the company had grown to 77 employees, a bold leap forward from its days of origin with just a single employee.

The Impact of World War I (1914-1918)
During World War I, Australians fought campaigns in the arenas of the Pacific, the Western Front and the Middle East, including Gallipoli. From a population of fewer than five million, 416,809 men enlisted, of which over 60,000 were killed and 156,000 wounded, gassed, or taken prisoner. Only three out of every ten returned unharmed.  

• 34 Queensland Insurance employees served at the Front (20 from Head Office). Their positions were kept open for them and Directors ensured they were no worse financially than if they were still at Queensland Insurance (QI).
• The company provided for the welfare of its staff through the Officers’ Provident Fund and the War Bonus paid to staff.
• In an economy so heavily reliant on shipping as both a means of trade and transport, the daily operations of the North Queensland Insurance Co were directly effected due to its involvement in marine insurance.
• During the war years QI still continued to prosper and expanded into Thailand, Vietnam & Malaysia. They appointed agents in Saigon and Haiphong, Mohr Bros and Co as agents in Bangkok, and McAllister and Co as agents in Penang.
• All three of James Burns’ sons served, one was killed in active service, one died as a result of service, and the eldest, also named James Burns, went on to become Chairman from 1923. He was badly wounded by shrapnel in France, and would carry a painful reminder of his service.
• In 1917, company founder James Burns was appointed Knight Commander of the Order of St Michael and St George, becoming Sir James Burns. His medals are on display at 82 Pitt St.

The Great Depression (1929-1936)
The Black Tuesday stock market crash in October 1929 brought about the most widespread economic depression of the Twentieth Century. Through sound business practices QI, B&T, and Equitable Probate and General Insurance Company were all able to weather the storm.  

• At the 44th Annual General meeting of Queensland Insurance, 30 Sept 1929, James Burns told shareholders "I am afraid that it will take a considerable time to emerge from the present depression. Unfortunately these unfavourable conditions are not confined to this part of the world and as our organisation is practically worldwide it is naturally adversely affected by any general stringency."
• QI was by now the largest Australian Fire, Marine and Accident institution with a well selected and high class of business on its books.

The Impact of World War II (1939-1945)
In September 1939, Germany invades Poland, sparking the declaration of World War II. Over the next six years, almost one million Australians would serve in the military; over 66,000 would be wounded; over 30,000 would become prisoners-of-war; and almost 40,000 would be killed in the line of duty.  

• In all, 71 Queensland Insurance staff members served in WWII. Two were killed, and four became prisoners of the Japanese. Those away on service could rest assured that their jobs would be kept open for them upon their return. Staff welfare was paramount. Those on the home front did what they could for their counterparts on active service with the Queensland Insurance War Comforts Fund. Staff donations, and fundraising activities such as market stalls, allowed care parcels to be sent overseas for those missing the comforts of home – they even included newsletters and educational paraphernalia about the insurance industry.
• Meanwhile, London staff carried on despite the threat of German invasion and the constant sound of air raids and bombings. Although their office avoided a direct hit, the blasts were enough to blow out every window in the London office, except for those in the manager’s office. As the war progressed, authority was given to purchase premises in Surrey and relocate the majority of staff.
• There was a substantial increase in Workers Compensation claims as inexperienced workers filled gaps left in the workforce by those on active military service.
• Motor vehicle premiums fell as war-time demands created shortages in resources such as petrol, keeping less cars on the road.

The Merger in 1973 (1973-1975)
In 1973, QBE is formed via the merger of Queensland Insurance, Bankers & Traders, and Equitable Life.  

• On 28 June, 1973 QBE Insurance Group Limited was listed on the Australian Securities Exchange.
• In March 1973, the Australian Financial Review reported “one of the largest mergers in Australian corporate history,” and from this point on, the QBE brand was built. But what did it really mean to create One QBE?
  - Greater efficiencies and economies of scale
  - Implementation of centralised operating procedures
• Development of a new logo and what it meant (unveiled in 1980) Three links in a chain. Triangular shape: traditional symbol for strength & unity. The chain: shows there is no weak link, it's equally strong & self-self-supportive in every direction

John Cloney: A New Leader for QBE into the 80s (1981 - 2010)
John Cloney joined QBE as Managing Director & CEO on 1 June, 1981. He was previously Director of marketing and underwriting for American International Underwriters (Aust) Pty Ltd. His vision and impact as a leader was to be central to QBE’s dynamic growth and far-reaching success. In 1998, he retired as CEO and was appointed Chairman, a position he held until 2010.  

• QBE Director, Chris Abbott, interviewed the four applicants for the role of Managing Director. He was to remark several years later, "We could not have known how well we had chosen."
• What would become the cornerstones of his stewardship were revealed in one of his first communications to staff: QBE "…must look at the efficiency with which we deliver our services;
    To "continue the policy of expansion by acquisition";
    And, the nature of QBE's success and expansion "will be attributable to the actions and efficiency of staff, not only in Head Office, but right through the branches. To give staff every assistance, the company will continue to employ all technological aids and advances available." Staff will have "…a freer hand in their own areas of responsibility, allowing them to express their individual entrepreneurial skills."
• The winners of the inaugural John Cloney Customer Service Award in 1992 were a group of staff from Sydney who called themselves SPOCS (Solving Problems on Customer Service). They identified improvements in the way customer renewal letters were written, which was to have an immediate impact in the business.

Frank O'Halloran: The Development and Evolution of QBE
(1976-current)
One of the great legacies of Frank O’Halloran’s stewardship of QBE is the nurturing of its corporate culture. Central to this is the evolution of the Essential Behaviours and the OPENUP QBE program. As CEO, he has also been at the helm of a period of sustained broad growth through acquisition.  

• 1976 - Frank O'Halloran joins QBE as Principal Accounting Officer
• 1994 - Frank O'Halloran is appointed Group Chief Operating Officer
• 1998 - Frank O'Halloran is appointed Managing Director and CEO of QBE
• In January 1998, John Cloney met with Frank O'Halloran in an office at 82 Pitt St. He handed Mr O'Halloran a baton with his old business card inside. On the back was written: "The baton is passed to Mr F M O'Halloran, MD and CEO, 4 January 1998." With it John Cloney said, "Look after this company. We've both put our heart and soul into it."
• In September 1995 Frank O'Halloran launched the QBE Manager Programme and the terminology of OPENUP and essential behaviours were first heard. Importance of succession planning, and early identification and development of leaders were highlighted as 'musts' to cope with continuing growth of QBE.
• In this same year QBE completed 22 years as a publicly listed company. It was now operating in at least 20 countries world wide, and for the first time QBE shares were included on the ASX 50 Leaders Index.

The World Trade Center Attacks (2001)
On the morning of September 11, 2001, the world was changed forever by the terrorist attacks on New York’s World Trade Center. The events of that day effected everyone in the insurance industry, none more so than the staff at QBE America’s New York office. A special USA edition of LINK magazine was published to share some of their first-hand accounts. 

Sponsorship & Social Responsibility
QBE has a long history of community involvement, which is much broader than its response to community needs after disasters and catastrophes. The company has played an active role in the areas of sporting sponsorship, the support of various charities, as well as developing and promoting awareness around its own environmental practices.  

• In 1976, QBE embarked upon its first sponsorship of a major sporting event. It was a first for their sponsorship recipient as well – the inaugural national tournament of the Australian Women’s Tennis Association, which had only recently been formed.
• In 1979, QBE were the insurers of "Sweet Caroline" – one of the competitors in the Sydney to Hobart Yacht Race.
• QBE's most prominent sporting sponsorships are the Sydney Swans and European Rugby, as well as NSW Swifts netball team and the A-league soccer team Perth Glory but their active involvement in the sporting arena began much earlier.
• QBE's 24 year sponsorship of the Sydney Swans is one of the most enduring partnerships in Australian sport. Beginning in 1987, the idea was sparked when John Cloney was driving across the Sydney Harbour Bridge and heard a radio report that the Swans were looking for a new sponsor. There are a number of parallels in the qualities inherent in both the Swans and QBE.
• QBE sponsored a two-man boat in the 2009 Woodvale Atlantic Rowing Race. The boat was called "The QBE Insurance Challenge" and one of the crew, James Croome, Assistant Underwriter at QBE Marine & Energy Syndicate 1036 in the UK. They won the Pairs Division.
• In February 2010, QBE announced a four-year deal with the RFU (Rugby Football Union) becoming the Official Insurance Partner of England Rugby. This is further to a sponsorship announced in October 2009, as Official Insurance Partner of Premiership Rugby.
• In September 2010, English Rugby star Nick Easter was named brand ambassador for QBE. He is the face of QBE's rugby activity and attends key industry events.