QBE has been hit hard by investors after announcing last year's annual profit in what CEO Frank O'Halloran described as a "superb" result.

Despite reporting a 30% rise in net profit to $1.925 billion, QBE failed to meet analysts' expectations, falling short by 6%.

Gross written premium (GWP) was up 20% on the previous year, compared to the 30% predicted at the beginning of the year.

Mr O'Halloran said on Thursday that the rising Australian dollar, lower interest rates in the US and UK, strong competition, volatile investment markets and reduced inward reinsurance contributed to the shortfall.

QBE was punished as a result, with the stock falling more than 10% to $25.38 by the time the announcement was over. By Friday shares had fallen to $22.57.

Mr O'Halloran says the strong Australian dollar stripped $707 million from QBE's GWP of $12.4 billion, while 21 natural disasters, compared to five the previous year, resulted in claims of more than $2.5 million.

"We were not immune from the Newcastle storms, the Sydney hailstorms, or Cyclone George, Winter Storm Kyrill, or Hurricane Dean, or the Peru earthquake," he said.

"All I can do is apologise to the analysts but we didn't have that information at the time we went out to the market."

Management has also predicted a growth in GWP of about 7.5% this year, weaker than the 10% originally targeted, growth of 10% in net earned premium, and insurance profit of 19-20%.

And despite being one of Australia's most admired CEOs after 10 years in the job, Mr O'Halloran felt the need to say he will stay on at least until the end of the year.