SYDNEY, Feb. 25 -- MediaNet International/AsiaNet MARKET ANNOUNCEMENT QBE's directors today announced a 105% increase in profit after tax for the year ended 31 December 2003, up from $279 million to $572 million. The increased profit came from higher insurance profit margins and improved equity markets, partly offset by an increase in the tax charge. Pre-tax profit was up 146% to $765 million. Gross written premium was up 8% to $8.35 billion and net earned premium was up 7% to $6.04 billion. This growth was achieved despite the significantly stronger Australian dollar, particularly against Sterling and the US dollar. Insurance profit as a percentage of net earned premium increased from 7.2% to 10.4%. Cash flow from operations was up 38% from $1.5 billion to $2.1 billion. In recognition of the increased profit and the outlook for 2004, QBE's directors have increased the final dividend from 18.5 cents to 22.0 cents per share (30% franked). The total dividend for 2003 is 42 cents, up from 35 cents per share in 2002. The dividend reinvestment plans remain in place for the final dividend at a discount of 2.5%. Mr Frank O'Halloran, QBE's Chief Executive Officer, said "It is extremely pleasing that we have been able to exceed our main financial targets for 2003 despite the adverse translation impact of the stronger Australian dollar on our significant overseas business. All five of our insurance divisions improved their underwriting profits and insurance margins, and our investment division exceeded investment benchmarks with a low risk investment strategy." Mr O'Halloran added "At current exchange rates, we are expecting further growth in 2004 in gross written and net earned premium of 10% and 12.5% respectively. We have also upgraded our target insurance profit as a percentage of net earned premium for 2004 to a range of 10% to 11%." For further information, please contact: Frank O'Halloran, Chief Executive Officer +61 2 9375 4400 Neil Drabsch, Chief Financial Officer +61 2 9375 4216 Gayle Tollifson, Chief Risk Officer +61 2 9375 4102 Our 2003 Annual Report is available on our website: http://www.qbe.com/Version_2/html/group/QBE_group_entry.html SOURCE: QBE