The maxim that it takes a lot to satisfy QBE investors was proved yet again on Friday as investors dumped nearly 7% from the insurer’s stock price despite another profitable year.

QBE shares fell to their lowest point since November last year, and dropped below the $23 mark for the first time this year, after announcing a 6% rise in profit after tax of $1.97 billion.

Investors reacted badly to news of a final dividend of 66 cents per share, one cent above 2008. The profit results were just below analysts’ expectations.

QBE’s results announcement also comes just days ahead of market speculation the insurer was eyeing the non-life insurance assets of stricken Dutch institution ING.

With $2.5 billion set aside for acquisitions, CEO Frank O’Halloran acknowledged to media he is searching the global market for another large acquisition, with ING’s general insurance operations a likely candidate.

QBE’s balance sheet was hit by $144 million financial crisis-related claims, a drop in foreign exchange gains and a reduced profit from repurchased debt.

Outstanding claims fell 11% in 2009 to $14.35 billion, however claims ratio – a measure of claims against premium income – rose by 3 percentage points to 60%.

Mr O’Halloran says the performance of the group was solid despite tough conditions.

“QBE’s careful and prudent approach to management of its substantial cash and fixed interest portfolio has assisted in achieving a very satisfactory overall investment performance and no permanent impairment on any one security,” he said.

QBE’s Australian operations – which comprise about 25% of the company’s gross written premium (GWP) – reported an improved operating ratio of 89%. QBE Australia’s GWP grew by 20% to $3.509 billion, largely off the back of bolt-on premium delivered from the acquisition of Elders Insurance.

Claims rose 12% to $1.67 billion, but the claims ratio was down slightly at 60.7%.