QBE should encourage government and policyholders to tackle climate change, Group CEO John Neal says – despite environmental protesters calling for more direct action from the insurer.

Despite climate change being his “pet topic”, Mr Neal has told shareholders it is more the responsibility of governments and policyholders to take action.

Mr Neal addressed the AGM last Wednesday, two days after activist group Market Forces plastered QBE’s Sydney office with images of damaged coral reefs and other pictures, to protest against the insurer underwriting fossil fuel projects.

QBE’s revenue from the fossil fuel industry is estimated at about $300 million, or about 2% of group revenue.

“My view is you’ve got to be careful on it,” Mr Neal told shareholders. “I’m pretty public on my views on climate change.

“I would rather we spent our time and energy really putting the effort into influencing government and actually influencing our policyholders in the way they act and behave.”

Mr Neal later told the media activist shareholders should keep protesting at QBE’s underwriting of fossil fuels.

“I would encourage them to keep protesting, because I think their voice is important.

“Our view is that the business community is being quite intelligent and thoughtful about how it manages its way through the challenges of energy.”

In an article on LinkedIn in March Mr Neal published discussed the impact of climate change, and said insurers have a greater role to play tackling “arguably one of the greatest challenges in the long-term wellbeing of the global economy”.

QBE posted a cash profit of $US893 million ($1.19 billion) last year, up 9% on 2014, or 21% on a constant-currency basis.

Net profit grew 1% to $US807 million ($1.09 billion) or 12% on a constant-currency basis.

Mr Neal describes the improved combined operating ratio (94% compared with 96.1%) as “our best underwriting result since 2010”.

At the AGM Chairman Marty Becker said premiums will continue to fall this year due to extreme competition.

“On average, insurance pricing across our business decreased by 1.3% [last year], and we anticipate similar declines,” he said.

Gross written premium (GWP) fell 10% to $US14.78 billion ($19.96 billion) last year.

Mr Neal says the performance target this year is a 94-95% combined operating ratio and $US14.2-$US14.6 billion ($19.17-$19.72 billion) GWP, with an insurance profit margin of 8.5-10% of net earned premium.