QBE Insurance shares peaked at their highest level since September 11 2001 last week, with analysts saying investor confidence in the group has been restored.

Analysts say QBE’s increases in premium rates have contributed to the group’s success, reaching a share price high of $9.53 during the middle of last week. Following 9/11 the group’s outlook looked weak, with its shares taking a nosedive from $10.08 to a five-year low of $5.10.

QBE CEO Frank O’Halloran said last month that the insurer is on track to meet its premium growth and insurance profit targets at the higher end of the 7-8% range.

It is also targeting net profit growth of more than 50% this year from $279 million in 2002, mainly thanks to an expected rise of 10-15% in insurance premiums.