QBE aims to strip at least $250 million of costs from the business by 2015, CEO John Neal told shareholders at the AGM late last month.

“Much of the cost of the investment in this project takes place during 2013 and 2014, with the majority expensed straight through to the profit and loss,” he said.

The benefits will start to show at the end of this year, with net gains from next year, Mr Neal says.

“We are expecting additional benefits from rationalising the costs of procurement of goods and services.

“These are difficult to quantify at this stage but are in addition to the $250 million operational excellence benefits.”

QBE has not ruled out disposing of underperforming businesses.

“We aspire to be leaders in our core businesses, where we are recognised as world-class and can shape the market,” Mr Neal said.

“We will prioritise our investment in those businesses, thereby maximising our growth and profit potential.

“We will review businesses and portfolios considered to be non-core and determine whether our capital could be better deployed elsewhere.”

QBE is aiming for a combined operating ratio of 92% and an insurance profit margin of about 11% this financial year, according to Chairman Belinda Hutchinson.

“Our plan strikes a balance between delivering performance in line with our stated short-term targets and progressing our longer-term strategy for value creation,” she told the AGM.

“We are at a stage in the global economic and insurance market cycle where there are encouraging signs of increasing premium rates, indications of positive economic growth in most of our key markets and improving investment markets, particularly longer-term bond yields.”

The shake-up of QBE’s business extends to executive pay, with the remuneration committee commissioning a review of current deals.

It follows a significant protest vote at the AGM against former CEO Frank O’Halloran’s retirement package. Almost 500,000 votes were cast in favour, with about 300,000 against.

Ms Hutchinson says there are also plans this year to appoint non-executive directors to replace retiring board members.

“One will replace Charles Irby [who retired at the meeting], with the other to be a new appointment to reflect the size and complexity of our global business,” she said.

“During 2014 and 2015, we will aim to further renew our board.”