QBE shares fell this morning after the insurer announced a shock 40% drop in expected half-year net profit.

Despite otherwise bullish figures – including a 7% rise in insurance profit to $US820 million ($915 million) and 20% gross written premium growth – QBE has warned of a net profit slump after sustaining $US228 million ($254 million) in share market losses.

Based on its preliminary figures, QBE expects to post net profit after tax of around $612 million, well down on the record $1.02 billion registered in the previous corresponding half and its lowest mid-year result since 2006.

QBE shares were down by 5.68% in late morning trading. At publication time QBE stock had fallen to $16.95, compared with the 1% rise in the Australian Securities Exchange (ASX) 200 index.

Shares in the company are now trading at their lowest point since mid-2009.

In a statement to the ASX, QBE also said its move to begin reporting financial results in US dollars was “more relevant” as more than half its premium income is now sourced in greenbacks.

The group only derives a quarter of its international premium revenue from Australia but the company says it has no plans – yet – for a dual listing.

The move to a US currency-based reporting system was first flagged in November last year and was subsequently raised in three separate market presentations.

QBE follows the well-trodden path of Australian-based companies BHP Billiton, Rio Tinto and James Hardie in reporting in US dollars.