QBE is set to lose Chairman John Cloney, who has announced his intention to depart the insurer some time in the next three years. But CEO Frank O’Halloran shows no sign of slowing down.

Speaking after being re-elected chairman for a further three-year term, Mr Cloney told the group’s AGM that after more than 10 years as chairman the current term is likely to be his last.

“It’s very likely this will be my last hurrah – but the young chap over here on my right [Mr O’Halloran] shows no sign of slowing down,” he said.

Mr Cloney joined QBE as MD in 1981. The 68-year old retired in 1998 and was appointed chairman a few months later.

He told the AGM the company is on track to meet a full-year insurance profit margin of 16-18%, against 19.7% last year when QBE banked $1.86 billion in net profit.

“We expect that 2009 will be another difficult year for investment yields given the global economic uncertainty,” Mr Cloney said. “In these circumstances, we will be very pleased if we are able to maintain or increase profitability over 2008 levels.”  

QBE Australia has flagged a 5% increase in premium rates this year and forecast gross written premium to rise more than 10% to about $3.3 billion.

Overall, the company has forecast 2009 gross written premium growth of 20-25% and a combined ratio below 88%. Underwriting profit is expected to increase by about 30%, though lower interest yields on cash and fixed interest portfolios are expected to partly offset that increase.

Mr O’Halloran told the AGM QBE is in a great position to make further acquisitions.

“The majority of our businesses continue to outperform their peers in most markets,” he said.