QBE has announced a net profit after tax of $279m (£174.3m) compared with last year's loss of $25m (£15.6m) last year.
Premium growth for 2002 was greater than expectations with gross written premium up 14% to $7.72bn (£4.8bn) and net earned premium up 22% to $5.64bn (£3.5bn).
The combined operating ratio showed an improved to 97.7% compared with 109.6% last year. That means the business makes more than it loses on its policies.
In addition, the Australian-based insurer said it was on target to achieve gross written premium of $8.5bn (£5.3bn) in 2003.
QBE chief executive Frank O'Halloran said: "We are extremely pleased with the results considering the lower interest rates and the substantial fall in equity markets during 2002.
"Our insurance profit margin was 7.2% compared with our 2002 target of 6.0% to 6.5%. Operating cash flow was well ahead of expectations at $1.51bn compared with $0.28bn last year."
QBE's directors have declared a final dividend of 18.5 cents per share.
