QBE Insurance Group has affirmed its top spot as Australia’s largest general insurer in a recent report by PricewaterhouseCoopers Australia.

With net earned premium revenue of $12.15 billion last year, QBE far outstripped rival Insurance Australia Group, which took second place with $7.23 billion.

Suncorp, Allianz Australia and Wesfarmers rounded out the top five with results of $5.98 billion, $2.07 billion and $1.06 billion respectively.

The Insurance Facts and Figures 2010 report ranks companies based on net earned premium revenue, including worldwide premium for companies or groups based in Australia. Only premium under the control of Australian operations was included for companies with overseas parents.

Munich Reinsurance Company Australia ($877 million), Zurich Australia ($780 million), Genworth Financial Mortgage Insurance ($490 million), Swiss Re ($414 million) and Westpac Insurance ($299 million) rounded out the top ten.

Commonwealth Insurance came close in 11^th place with $292 million in net earned premium revenue followed by Chubb Insurance ($265 million), AIG/Chartis ($249 million), RAC Insurance ($237 million) and Ace Insurance ($191 million).

Ibisworld Senior Analyst Michael Wilson says the list contains no great surprises but does highlight the strength of Australian insurance companies and their increasing international presence.

“It is no surprise that QBE continues to lead that table,” he told insuranceNEWS.com.au. “It has performed particularly well in recent months, its margins are in excess of the majority of its competitors and its expansion into new markets in Europe and particularly the US is probably going to serve to increase its advantage over many of its rivals.”

And while he “wouldn’t say that the global financial crisis is over”, Mr Wilson believes solid revenue and the stable market gives Australian insurers an advantage in the global marketplace.

“Depending on the activities of stock markets it is possible that acquisitions or merger targets may emerge on the domestic front, particularly for small and medium-sized insurers. But it’s more likely large Australian insurers will acquire assets overseas.

“The ongoing profitability of the Australian insurance industry has placed numerous companies in a strong position to consider expanding their geographical or strategic footprint over the coming 12 months, and insurance assets in certain parts of the world that have been more affected by the downturn will likely be priced at pretty good rates.

“So you will find companies like QBE looking around other continents to see what is going cheap, because a lot of investors in other parts of the world simply don’t have the capital and financing to push them really hard on prices, whereas in Australia there is not as much low hanging fruit due to the fact that there are fewer insurers who are really struggling.”

Reflecting the strength of the Australian market, and the number of recent expensive catastrophes, it seems the nation is set to buck the international trend in declining reinsurance rates by remaining fairly constant.

Mr Wilson says premium rates are also expected to rise in the months ahead, reflecting the fact that insurers are seeking to recover recent poor investment returns which have affected their underwriting capacity.

But as so many brokers are continuing to say, we’ve heard that argument before.