SYDNEY (Reuters) - QBE Insurance, Australia's top insurer by premium income, posted a lower-than-expected 8 percent rise in full-year net profit due to high claims for accidents and adverse U.S. weather, prompting it to slash its dividend.
QBE, which has completed more than 75 acquisitions in the past 10 years, reported an annual net profit of $761 million, compared with $704 million a year ago and $760 million at the half year.
QBE said its annual cash profit was $1.04 billion, in line with guidance in November when it had warned of big claims from U.S. storm Sandy and said its insurance profit margin would be around 8 percent.
QBE said its underwriting result was hit by significant prior accident year claims, the severe U.S. drought, Sandy and lower risk-free rates.
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