QBE Insurance Group Ltd (ASX:QBE) says its full-year net profit fell 16 per cent as it was struck with a rise in claims.
In the 2010 financial year Australia's biggest insurance company delivered a net profit of $1.3 billion, down from $1.5 billion achieved the year before.
QBE’s full-year insurance profit margin came in at 15 per cent, under its target of between 16 to 18 per cent.
The decline was attributed to lower investment yields on lower insurance funds, higher premium taxes and the high frequency of catastrophe claims related to weather and earthquakes.
Looking ahead QBE is targeting an insurance profit margin of between 15 to 18 per cent in the current financial year.
A final dividend of 66 cents per security has been declared, 10 per cent franked.
In the six months to 30 June 2010, QBE Insurance Group generated a net profit of $523 million.
