Media Release - 10 December 2001

Aviation insurance enters a new era with QBE Aviation
On January 1, 2002, two of Australia's most respected aviation insurers will unite.

Australian Aviation underwriting Pool (AAUP) and Australian Aviation Insurance Group (AAIG) will join forces to become QBE Aviation.

"For current clients of both AAUP and AAIG, this merger will bring positive change, with no disruption to the levels of service that they currently enjoy," said Ken Gowans, recently appointed General Manager, QBE Aviation.

"All the changes we're looking at implementing will be aimed at enhancing our service delivery to both intermediaries and customers", he continued. "The real benefits will be felt over time. The philosophies of the business will be centred on a claim-friendly approach, ensuring that our policy holders experience minimum loss and down-time from incidents and accidents."

In addition, QBE Aviation will be placing an increasing emphasis on risk management and mitigation as a way of helping clients to contain their premiums. In fact, the new philosophy is based on rewarding those who have a proven professional commitment to operational safety.

National Marketing and Development Manager Julian Fraser explains, "Basically we will recognise and reward people who operate professionally. For us, that means people who regularly undertake safety courses, check and training, including proficiency and recurrency training, and crew resource management, etc.

"We welcome operators or pilots who would like advice on selecting safety initiatives to contact QBE Aviation. The best way to do this is for you or your insurance broker to contact AAUP or AAIG," said Julian.

AAUP was formed in 1960 and pioneered most of the features and benefits now considered industry practice within aviation underwriting. It is an active participant in the aviation industry and a vocal advocate for aviation safety. It has been the largest aviation insurer in the Southern Hemisphere for over 30 years.

AAIG is a relatively new player in aviation insurance. It was founded in 1992 and has rapidly built market share and a reputation for professionalism. In fact, AAIG's Victorian branch, based at Essendon Airport, was responsible for developing and introducing the Robinson Helicopter Insurance Program that has been operating successfully since 1993.

QBE Aviation will build on the assets of these two companies. The emphasis upon deep industry knowledge provided by experienced managers and underwriters (many of whom are pilots themselves) will continue.

"We're proud of the close relationships our people have with the aviation Industry"' said Ken Gowans, who had almost 20 years as Chief Executive Officer of Transport Industries Insurance - an Ansett subsidiary. Ken was also a former board member of the AAUP and has spent a large part of his professional life associated with aviation.

The Chairman of QBE Australia's Board, John Cloney, is also no stranger to the aviation industry. As a former Chairman of the AAUP Board, he will no doubt be taking a keen interest in the development of the new, larger organisation.

For further information on QBE Aviation and to arrange photographs or an interview please contact Carolyn Wray at Huzzard Byfield on
03 9690 3755 or 0410 495 914.