QBE has underlined its resilience to volatile investment markets and adverse economic conditions by announcing a record first-half net profit of $1.02 billion.

Group CEO Frank O'Halloran expects even better results in future as an improving outlook flows through to insurance profit margins.

QBE's net profit increased 19% from the first half of last year as gross written premium (GWP) climbed 22% to $8.06 billion. Net written premium was up 21% to $6.19 billion.

Higher trade credit insurance claims, equity losses and lower interest yields slightly dampened profit, but foreign exchange gains and profit on repurchased debt securities helped offset those effects.

The combined ratio deteriorated to 89.3% from 85.8% at the same point last year.

QBE Australia reported 10% growth in GWP of $1.63 billion but the combined ratio deteriorated more than five percentage points to 87.7% due to the effect of rising claims.

"Householder, farm and motor lines were all affected by the bushfires and storms that all our competitors have experienced, and so have we," Mr O'Halloran said.

Overall, QBE reported an on-target insurance profit margin of 17.5% on the back of an average premium increase of 4% across all lines.

For the full year, QBE has forecast an insurance profit margin between 16-18% and a combined ratio below 88%. It also expects to beat last year's profit of $1.86 billion.

Mr O'Halloran says higher interest rates on QBE investments combined with low debt levels and a strong capital position to encourage further acquisitions.

"We continue to look at opportunities as they come across our desk," he said.