QBE Insurance won’t be following James Hardie Industries and News Limited in basing its operations outside Australia. After a year of high-profile acquisitions and record-breaking profit, the Sydney-based international company has also been the target of plenty of media speculation.

The latest is that the group will move its offices to Europe. But group CFO Neil Drabsch told Sunrise Exchange News yesterday the rumours are not true.

BRW magazine said recently that a European location would be a natural move for QBE because more than 75% of its business is written overseas.

The business magazine said this would allow CEO Frank O’Halloran to become chairman when he retires, following in the footsteps of current chairman (and former CEO) John Cloney. It claims the corporate regulators don’t want CEOs to become the chairman on retirement. 

But Mr Drabsch says QBE – which is listed as one of the top 20 companies on the ASX index – isn’t denied access to any international markets. “We have to take into account the interests of local and international shareholders, and we don’t see any benefit in such a move.”

One insurance analyst says the BRW article is probably a case of a journalist trying to find a good angle. There is no regulatory provision preventing Mr O’Halloran from succeeding Mr Cloney as chairman.

The analyst says QBE has derived less than 30% of its business in Australia for years and there is no big reason to make a move now. “And Frank O’Halloran has indicated that Australasia is one of the group’s big acquisition target areas.”