QBE’s steady and unspectacular approach to growth throughout the past 10 years is paying off handsomely for its shareholders, with the company’s share price rising through January in response to expectations of big profits in 2001.

The darling of the stockmarket’s unpopular insurance sector has been tipped by analysts to increase earnings by nearly 90% this year. The specialist financial news agency Bloomberg says the company’s calendar 2001 profits will rise to $293 million – an 87% rise on its June 2000 figure.

CEO Frank O’Halloran is certainly bullish, saying he expects the company to raise its gross premium income by at least 40 per cent to $5 billion.

He’s also predicting more acquisitions in Asia and the Americas to top off the successful purchase of Lloyd’s underwriter Limit last August. The acquisition has made QBE the largest underwriter in the Lloyd’s market.