QBE has swung to a $US390 million ($A546 million) full-year profit on "significantly reduced" catastrophe claims.
QBE said on Monday that attritional claims for the 12 months to December 31 were lower across all divisions compared to 2017, when it posted a $US1.25 billion loss following hurricanes and wildfires in the US.
Chief executive Pat Regan said the decision to offload QBE's Latin American operations and Australia-New Zealand travel insurance arm had also helped improve the underlying quality of the business and its financial performance.
"Significant portfolio rationalisation and simplification, successful placement of the restructured 2019 reinsurance program, divisional consolidation and initiation of a three-year operational efficiency program position us well to deliver further value for our shareholders in 2019," Mr Regan said.
Revenue for the calendar year dipped eight per cent to $15.4 billion, while gross written premiums rose to $US13.66 billion compared to $US13.33 billion a year earlier.
The total net cost of catastrophe claims fell to $US523 million or 4.4 per cent of net earned premium, compared with $1.21 billion or 10.3 per cent in the prior period.
While not as extreme as 2017, the company said catastrophe incidence remained above historical averages, particularly due to Hurricanes Florence and Michael in the US, as well as the Californian bushfires, typhoons in Asia, and December's hailstorm in Sydney.
Meanwhile, the company expects to complete the sale of operations in Colombia, Puerto Rico, Indonesia and the Philippines during 2019.
QBE will pay a final dividend of 28 cents, partially franked, up from 4.0 cents a year ago.
Shares in the company were up 3.05 per cent to $11.83 at 1341 AEDT on Monday.
QBE SWINGS TO FULL-YEAR PROFIT
* Net profit $390m vs $1.25bn loss in 2017
* Revenue down eight per cent to $15.4bn
* Dividend 28 cents, partially franked, up from 4.0 cents a year ago
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