QBE Insurance has exceeded market expectations with a 2002 after-tax profit of $279 million. That compares with the $25 million recorded last year, when the Australian international was still battling post-September 11 problems.

The company’s profit margin was 7.2% compared with the 2002 target of 6-6.5%. Operating cashflow also exceeded expectations at $1.51 billion compared with $0.28 billion last year.

CEO Frank O’Halloran said QBE’s operating profit was $406 million, and he is confident of increasing net profit by 50% this year.

Last month, analysts propped-up their forecasts to a net profit around $274 million after QBE said it expected to exceed market expectations by around 15%.

Mr O’Halloran said the company’s is extremely pleased with the results “considering the lower interest rates and the substantial fall in equity markets during 2002”.

QBE has a target written premium of $8.5 billion for 2003, and is “in an excellent position to participate in the current positive insurance market conditions”.