QBE is on-track to exceed its target of a 50% increase in net operating profit this year. CEO Frank O’Halloran told the group’s 30th annual general meeting in Sydney last week that QBE expects to write about $8.5 billion in gross written premium this year, up from $7.7 billion in 2002. Net earned premium is expected to rise from $5.6 billion to $6.4 billion.

Considering the stormy investment climate, the net profit after tax result of $279 million was a “very satisfying financial result”, Mr O’Halloran said. Very true, especially compared to last year’s $25 million loss.

His predecessor as CEO, Chairman John Cloney, was well versed at bemoaning the cost of compliance, and Mr O’Halloran maintains the rage. He said QBE will “do our part” in the face of increasing regulation, but compliance won’t come cheap. “The cost has exploded and now the expense in management’s time and money is very significant,” he said.

Mr O’Halloran says QBE will continue to grow through acquisitions and other fundamental business decisions throughout the year. He said the company has been approached about a number of potential deals recently. It’s understood QBE made an offer for Lumley’s Australian operations but it was declined.