QBE Insurance appears to have shaken off bad memories of September 11 with a record 105% increase in net profit for 2003. And, it says, it’s going to get even better.

A $572 million profit for the year to December 2003 is a big accomplishment for the group, which lost $250 million as a result of the terrorist attacks on the World Trade Centre.

CEO Frank O’Halloran says the pleasing profit and a year of benign weather prompted the group to increase its final dividend from 18.5 cents to 22 cents a share.

He says the group has also upped its 2004 predictions for gross written and net earned premium by 10% and 12.5%. And he has upgraded its target insurance profit as a percentage of net earned premiums for this year to a range of 10% to 11%.

“It is extremely pleasing we have been able to exceed our main financial targets for 2003, despite the adverse impact of a stronger Australian dollar on our significant overseas business,” Mr O’Halloran said.

“All five of our insurance divisions improved underwriting profits and insurance margins, and our investment division exceeded investment benchmarks with a low-risk investment strategy.”

Despite the stronger Australian dollar, gross written premium was up 8% to $8.35 billion and net earned premium rose 7% to $6.04 billion.