QBE Insurance Group today announced the acquisition of Seguros Cumbre SA de CV in Mexico ("Cumbre Seguros"). The acquisition is subject to regulatory approvals.

Cumbre Seguros is a profitable commercial lines insurer of small to medium clients and wrote US$57 million of gross written premium in 2006. It has 73 employees and three offices in Mexico City, Guadalajara and Monterrey. QBE estimates net tangible assets to be around US$26 million on completion. The purchase price is a low multiple of net tangible assets. The acquisition will be funded from internal sources.

Frank O'Halloran, QBE's Chief Executive Officer said "The acquisition of Cumbre Seguros is in line with our strategy of gradually building our presence in Latin America." He added "QBE will now write over US$200 million of general insurance premium income in Argentina, Brazil, Colombia and Mexico."

For further information, please contact:

Frank O'Halloran, Chief Executive Officer - +61 2 9375 4400
Neil Drabsch, Chief Financial Officer - +61 2 9375 4216
Tim Kenny, President and CEO, the Americas +1 212 894 7543