QBE Insurance Group Ltd
(ASX:QBE) says its profit for 2009 rose 6% to $1.97 billion up from $1.86 billion in 2008. Premium growth of 10% was in line with guidance provided by the company in November last year. QBE’s insurance profit declined 5% to $2.064 billion from $2.183 billion recorded for the same period a year ago. CEO Frank O’Halloran says the company’s insurance profit compares favourably with its peers and reflects the group's continued focus on ensuring each product and each country meets QBE's minimum requirements for return on allocated capital. QBE declared a final dividend of 66 cents a share.
Mr O’Halloran says the company expects 2010 to be another difficult year for the insurance industry with a continuation of low interest yields and premium rate increases being less than claims inflation for many products. Mr O’Halloran says QBE is confident about its prospects for maintaining underlying profit; however, the strengthening of the Aussie dollar and the continued low interest rates will adversely impact its reported profit. QBE Insurance Group reported profit of $1.859 billion for calendar 2008.
