QBE has revised its profit outlook for 2011 with expectations of a 30% rise before tax, compared to the 22-25% profit it had previously forecast.

Speaking at the group’s AGM last week, QBE Chairman Belinda Hutchinson said the lift in profit expectations is mainly due to growth in premium income from recent acquisitions.

CEO Frank O’Halloran says the group has more than $2.2 billion in excess capital and could raise up to $1.2 billion in additional debt, allowing it to push ahead with further acquisitions in the US, Latin America, Europe and Asia.

Ms Hutchinson says that at the end of the first quarter the company remained on track for a full-year insurance profit margin – a key measure of profitability – of 15-18%.

In 2010, the company’s insurance profit margin came in at 15%, falling short of its target of between 16-18%.

Ms Hutchinson says that in order to achieve a profit margin at the upper end of its forecasts, the rest of 2011 will need to be free from significant catastrophe losses. An upward movement in interest rates will also be required.

“It really is very sensitive to interest rates and obviously the continuance or not of large catastrophes,” she said.

While welcoming developments on a common flood definition, Ms Hutchinson lashed out at the Federal Government over its lack of investment in flood mapping.

“Without proper flood mapping, property development has been allowed in flood-prone areas,” she said. “There is action required – action we feel is well overdue.”

QBE shares rose 5.5% to $19 on the day after the company also told shareholders it would maintain or increase its dividend.