US dollar bites as QBE profit drops 7.4%

Insurer QBE's net profit for the 12 months to December 31 was $US687 million, down from $US742 million.

Insurer QBE has taken a 7.4 per cent drop in full year profit, with a stronger US dollar, low interest rates and increased competition all taking a toll.

Net profit for the 12 months to December 31 was $US687 million ($A950 million), down from $US742 million for the previous year despite its insurance profit margin improving to 9.0 per cent from 8.4 per cent.

"I think I can say without doubt that this is the toughest marketplace I can remember," QBE chairman W Marston Becker said in a statement.

QBE will pay a final dividend of 30 Australian cents, fully franked.