SYDNEY--23 Feb--Medianet International-AsiaNet /InfoQuest QBE Insurance Group today announced a record operating profit after tax of $1,483 million for the year ended 31 December 2006, an increase of 36% over the previous corresponding year. Diluted earnings per share increased by 32% to 173 cents and return on equity was 26.1% compared with 23.9% in 2005. Gross written premium was up 10% to $10.4 billion and net earned premium was also up 10% to $8.2 billion. The ratio of claims, commissions and expenses to net earned premium (“combined operating ratio”) was 85.3% compared with 89.1%. Insurance profit before tax to net earned premium was ahead of expectation at 21.9% compared with 17.4%. All major insurance divisions produced excellent combined operating ratios and insurance profits. In view of the record operating profit and the positive outlook for QBE’s business, the directors have declared a final dividend of 55 cents per share, 60% franked. This compares with a final dividend of 38 cents for 2005. The total dividend for 2006 is 95 cents per share compared with 71 cents. Dividend payout has increased by 39% to $774 million. Dividend reinvestment plans havebeen re-introduced at a zero discount. Our books close for the dividend on 14 March 2007. Frank O’Halloran, QBE Group Chief Executive Officer, said “we have had a superb year with the substantial increase in rofitability being assisted by overall average premium rate increases of 6%, a reduction in catastrophe claims and strong cash flow. ” Mr O’Halloran added “the acquisitions of Praetorian Financial Group, Winterthur US and Seguros Cumbre in recent weeks, once completed, will ensure that we have significant growth in 2007 and 2008. These acquisitions together with the many high quality businesses and teams we have around the world give us confidence that we can increase profit after tax by around 20% in2007. Our forecasts are subject to the usual caveats such as large claims not exceeding the significant allowances in our business plans, foreign exchange rates and stable investment markets.” For further information, please refer to our 2006 annual report which is available on our website www.qbe.com . MEDIA CONTACT: Lynn Chung phone: +61 2 9375 4226 email: [email protected] web: www.qbe.com SOURCE: QBE Insurance Group --Distributed by AsiaNet ( www.asianetnews.net )--