QBE has confirmed its net profit for the year to December 31 2010, due to be released on February 28, remains in line with market expectations of around $US1.28 billion ($1.26 billion).

The international insurer is expecting to report gross written premium of $US13.6 billion ($13.4 billion) and a combined ratio of 90%.

CEO Frank O’Halloran said in a statement last week that the group’s insurance profit margin is likely to come in at 15%, which is below its previous market guidance of 16-18%.

This is due to falling investment yields and a higher than expected frequency of catastrophe claims in the second half of 2010.