SYDNEY (Reuters)–QBE Insurance, Australia's most valuable insurer, posted a forecast-lagging 13 percent rise in first-half net profit, hurt by one-off claims, and cut its full-year insurance profit margin forecast, knocking its shares down as much as 11 percent to two-month lows.

The results show some insurers are still vulnerable to the impact of a disaster-filled 2011 that saw unprecedented levels of claims arising from storms, floods, tsunami, tornadoes and earthquakes from Australia to the United States and low bond yields that battered their profits and shares.

QBE, which has made 75 acquisitions in the last 10 years to spread to 50 countries, said first-half net profit was $760 million compared with $673 million reported a year ago and $795 million expected by analysts.

It announced a dividend of 40 cents which too was below analysts' expectations of 42 cents and cut its net insurance margin forecast to 12 percent or better from at least 13 percent forecast previously.

QBE shares fell to a two-month low and at 0010 GMT were 9.4 percent lower at A$12.38.

Profit growth was helped by sharp drop in claims, premium rises and a lift in returns from investments. But a $117 million prior-year claims deterioration and higher claims provisions in Europe led it to miss forecasts.

Reinsurer Swiss Re has termed 2011 as the insurance industry's second-worst on record with some $116 billion in claims for the industry.

QBE said net investment income for the half-year was up 35 percent to $686 million compared to $507 million for the same period last year. It said it has 1.54 times the minimum capital requirement.

QBE's net profit fell 45 percent last year, hurt by a disastrous second-half as claims mounted.

“Typically, the second half year is more exposed to catastrophe risk than the first half, particularly for US hurricane losses,” QBE said in a disclosure to the stock exchange, adding it had adequate allowance for claims.

(Reporting by Narayanan Somasundaram; Editing by John Mair and Muralikumar Anantharaman)

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